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Market Analysis

Home » Latest News » Option Banque Technical Analysis Report: 06-Apr-2016

Option Banque Technical Analysis Report: 06-Apr-2016

Posted by Option_Banque in Latest News - April 6th, 2016 4:45 pm GMT

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Read full technical analysis report here

Today, oil prices jumped up. This was due to the expectations that a wide deal about the output freeze will be reached amid global oversupply. Kuwait’s OPEC Governor and two sources suggested that the meeting of oil-producing countries on April 17 would release an agreement to freeze output. Hence signaling that Iran’s aim to boost production will not scupper the price supporting deal.

Amid times of sell-off in the global markets since the start of this year, the yen’s favor as safe-haven asset has become stronger. Thanks to the slowdown in Fed’s tightening policy, Yen has soared steadily. However, this advance has come along with the mounting fear that Japan’s government could intervene to hold back its currency’s rally, which is a headwind to the recovery of Japanese economy. Yesterday, Japanese Prime Minister Shinzo Abe told that countries should avoid competitive devaluation with arbitrary intervention in currency market. The dollar then quickly dropped below 110 yen before recovering to about 110.50 yen.

Currency market strategists are predicting that the greenback will become weaker over the next few months, as the Federal Reserve does not seem to take another rate hike through the spring. Federal Reserve President Eric Rosengren and Chicago Fed President Charles Evans stated that the market view about rising interest rate was pessimistic due to disappointing global economic data. This makes gold keep the gain as this is seen as a safe-haven asset in current global economic condition.

The dollar index, measuring the U.S. currency against a basket of six major currencies, fell 4.1 percent in the first quarter. This was its biggest quarterly percentage drop in five and a half years.

Technicals

NZDUSD

Stochastics chart shows that NZDUSD dived in the oversold territory for a period of time and now is escaping this zone. The pair is climbing up from the support of 0.67561 yesterday, seems to rise more. However, the parabolic SAR still casts shadow on the price movement and has not met the price yet. The pair is anticipated to inch up for some consolidation before continuing the downward pressure.

Trade suggestion

Buy Digital Call Option at 0.68390 and Digital Put Option at 0.67889.

EURUSD

EURUSD hit the resistance of 1.14384 on April 01, and then has been fluctuating lately with no clear direction. The short-term SMA14 has already crossed over the long-term SMA21 from above, signaling for a trend change. The pair is expected to move sideways in short – term before starting a sharp downtrend.

Trade suggestion

Buy Digital Put Option at 1.13337 and Digital Call Option at 1.14112.

GBPJPY

GBPJPY is on track to fall from the two-week high (162.579) formed on March 30 with the pressure of the EMA lines hang over. As shown by the stochastics chart, the pair is plunging in the oversold area, a rebounce is expected to happen. The recent candles own quite short bodies indicating that the bull is chopping after bearish time.

Trade suggestion

Buy Digital Put Option at 155.412 and Digital Call Option at 156.817.

SILVER

SILVER takes pressure from the bearish market as the dots band is hanging above the price chart. RSI is standing at 45.6235, near the average. The metal is anticipated to move in a narrow range for a while and then continue the current downtrend, reaching the support of 14.855.

Trade suggestion

Buy Digital Put Option at 14.963 and Digital Call Option at 15.128.

BRENT

BRENT expanded the downtrend and hit the support of 37.29 yesterday. The price is surging up strongly from the oversold territory as shown in the stochastics chart. However, the selling power is still strong, the commodity is expected to test the resistance level of 39.30 before pulling back.

Trade suggestion

Buy Digital Put Option at 38.100 and Digital Call Option at 39.545

NASDAQ

RSI indicator is hover around the average, giving no clear direction for the price movement. The SMA 14 (green line) is heading down and tend to cross the SMA 21 (red line). If the short-term SMA lies below the long-term SMA, a decline happens and the index may break the two-month trend line, reverse to downtrend.

Trade suggestion

Buy Digital Put Option at 4449.56 and Digital Call Option at 4544.00.

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