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Oct 01, 2016

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Home » Latest News » Option Banque Technical Analysis Report: 01-Apr-2016

Option Banque Technical Analysis Report: 01-Apr-2016

Posted by Option_Banque in Latest News - April 1st, 2016 2:49 pm GMT

01
Read full technical analysis report here

The two biggest Asian economies showed mounting concerns about global recovery. As a result, the stock markets went down.

The Bank of Japan’s decision to shift to negative interest rate in January’s meeting has not been advantageous. This is due to the fact that Japanese economy keeps posing weak. The Tankan surveys of business conditions were published in early trade. They indicated that the sentiment among largest manufacturers and non-manufacturers deteriorated to the lowest in nearly three years.

The index gauging for the health of manufacturing sector only stood at 6. This was as much as half compared to the data of the previous two months. The gauge for non-manufacturing sector also drop to 22 from the level of 25 recorded in January and February. Both readings could not reach the expectation of the market, which is 8 for the former and 24 for the latter.

The weakened demand from foreign markets and strengthened Yen led to the retreat in Japanese business sentiment. This not only made the already gloomy situation worse, but also put more pressure on PM Abe to boost his on-verge-of-recession rebound.

The Chinese official factory gauge showed improving conditions for the first time in eight months with the PMI index recorded at 50.2 in March. Meanwhile, the non-manufacturing PMI surged to 53.8 from 52.7 in February, the highest number in the last three month.

This improvement is suggesting that the government’s fiscal and monetary stimulus is kicking in. a significant rate cut in jobs is raising another concern despite Beijing’s attempt to cut industrial overcapacity without spurring massive layoffs.

Today, a batch of data from Eurozone and U.S, especially the Non-farm Payrolls due at 0:30 P.M GMT, will draw market’s attention.

Technicals

USDJPY

The pair has gone sideways around 112.193, moving under the 38.2 Fibonacci retracement for two trading days. The consolidation following a sharp retreat at the start of this week is likely to make a break today as the RSI (14) has inched down to 36.76, which shows a strong bearish market. The greenback is expected to hit the 61.8 level at 111.952.

Trade suggestion

Buy Digital Put Option at 111.969, Buy Digital Call Option at 112.360.

EURGBP

In general, the pair has been gaining strong bullish momentum since it hit the support at 0.78334 on Wednesday, and is heading for the one-week high at 0.79457. The RSI (14) is still at a high level of 67.34, much likely to break into overbought territory but a correction is expected then as the resistance of 0.97457 is quite strong. This level has retrained the pair from taking off at least two times in the past.

Trade suggestion

Buy Digital Put Option at 0.78916, Buy Digital Call Option at 0.79487.

AUDUSD

A consolidation is causing the price to move sideways lately under the resistance of 0.77219. The distance between the price and the MA21 is getting closer but a crossover is not expected soon as the Aussie may pull back from the support at 0.76490, which has as a strong resistance last week. Moreover, the RSI (14) is still lingering near the overbought zone, indicating the market is in favor of the bull.

Trade suggestion

Buy Digital Call Option at 0.77183, Buy Digital Put Option at 0.76295.

SILVER

Silver is moving in a shrinking range under the downward trending resistance and above the support of 15.365. A north-to-south breakout is predicted to occur soon as the –DI line is about to cross over the +DI line. The price may fall to the support at 15.186 before bouncing back or extending the losses to the low of 15.048.

Trade suggestion

Buy Digital Put Option at 15.186, Buy Digital Call Option at 15.454.

BRENT

The Brent crude is moving in a descending triangle and has just bounced back from the lower bar. Both of the indicators are showing no clear trend as the RSI (14) is hovers around 45.16 while the ADX (14) has lowered to 19.00. The price is facing a resistance at 40.30, a correction is expected soon.

Trade suggestion

Buy Digital Put Option at 39.60, Buy Digital Call Option at 40.85.

FTSE

The gauge for 100 U.K blue chips has been locked between 6228.2 and 6096.4 for a month. FTSE is pointing to the support at 6096.4. The retreat has been confirmed as the ADX (14) has surged to 27.09 with the –DI is above the +DI and the distance between two lines widens.

Trade suggestion

Buy Digital Put Option at 6076.2, Buy Digital Call Option at 6167.2

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