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Home » Latest News » Option Banque Technical Analysis Report: 07-Apr-2016

Option Banque Technical Analysis Report: 07-Apr-2016

Posted by Option_Banque in Latest News - April 7th, 2016 6:25 am GMT

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Read full technical analysis report here

The Federal Reserve released minutes of the FOMC meeting held in mid-March. According to the minutes, the rate hike sees no possibilities to be carried on in this month as previous expectation, due to the weak economic growth. After discussing whether to continue the normalization road or not, the policymakers came to the decision that the central bank would not raise interest rate before June.

The Energy Information Administration (EIA) on Wednesday also reported that crude oil stockpiles last week decreased 4.9 million barrels. Meanwhile, forecasts predicted it to build up to 3.2 million barrels and reach the 8 consecutive weak peak. After the surprise draw in inventories, the oil prices surged up sharply, settling down at $38.49, rose 3.27% from the open price.

In the euro area, the retail PMI in March pointed to decline to 49.2 from 50.1 in February, the fourth decrease in the last five months. A reading smaller than average implies an economic slowdown of the Eurozone.

In Asia, the Caixin China services PMI inched up to 52.2 in March from 51.2 in February, indicating a recovery outside the nation’s factory sector. Whereas, the Japan leading index last month dropped for the fourth month to 99.8, according to the Japan’s Cabinet Office report yesterday.

The BOJ Governor Kuroda stated that the central bank may stick to the negative rates as long as possible if necessary to gain the target of 2% inflation this year.

On Wednesday, Australia reported its Performance of Construction Index for March to be at 45.2. This was the lowest level in 13 months, showing a descending in construction activity.

Technicals

GBPUSD

Since September 2015, GBPUSD has been in strong downtrend from the resistance at 1.56314. RSI is now at 43, heading to the overbought territory, indicating stronger selling power. The price is anticipated to hit the support level at 1.38135 soon as the strong pressure from the downtrend may push the pair to the oversold zone.

Trade suggestion

Buy Digital Put Option at 1.40176, Buy Digital Call Option at 1.41053.

USDCAD

USDCAD is now traded at 1.30811. The pair fell consecutively from the resistance at 1.46791, formed on January 20 and is heading to the oversold territory with RSI hovering below level 45. Due to the pressure of the two moving averages above, the price is supposed to continue the bearish market and test the support at 1.28642, created on March 31.

Trade suggestion

Buy Digital Put Option at 1.30621, Buy Digital Call Option at 1.31679.

EURJPY

EURJPY plummeted to 124.558 from the resistance at 128.236 due to the pressure of the moving average above. The ADX at 69.63, as long with DI- staying above DI+ and heading up, indicates that the selling trend is very strong at the moment. The pair is expected to continue the downtrend, hitting the support level at 123.044, formed on March 19.

Trade suggestion

Buy Digital Call Option at 124.428, Buy Digital Put Option at 122.440.

GOLD

GOLD recovered from around 1208.78 to as high as 1237.02. After escaping from the resistance at 1284.04 formed on March 11, the commodity witnessed strong bearish market. With RSI above level 60 heading to the overbought zone and the short-term moving average moving below the price, the price is expected to have a slight recover to test the resistance at 1233.05.

Trade suggestion

Buy Digital Call Option at 1244.34, Buy Digital Put Option at 1222.40.

WTI

WTI is now traded at 38.91 with RSI hovering around level 50. The commodity gained consecutively from around 28.41before hitting 42.43. After reaching this resistance, the price fell to the Fibonacci 50 area and bounced back. It is expected to move sideways around the Fibonacci 23.6 zone in 1 or 2 days then pull back and hit Fibonacci 61.8 area.

Trade suggestion

Buy Digital Call Option at 38.811, Buy Digital Put Option at 37.144.

DAX

DAX current price is 9662.79. The index extended the recover from the support at 9494.84, created on April 6, after dropping from the resistance at 10099.6. RSI is now 43, heading to the level 50, indicating that the uptrend is being formed. With the support of the moving average below, the price is expected to continue gaining, retesting the resistance level at 9899.68.

Trade suggestion

Buy Digital Call Option at 9721.49, Buy Digital Put Option at 9496.29.

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