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Market Analysis

Home » Latest News » Option Banque Technical Analysis Report: 08-Apr-2016

Option Banque Technical Analysis Report: 08-Apr-2016

Posted by Option_Banque in Latest News - April 8th, 2016 3:53 pm GMT

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Read full technical analysis report here

Asian stocks are settling down in red for the third consecutive week. Banking and financial shares led losses in the market on Friday, following the slump of their counterparts in Europe and the U.S. markets on Thursday. Investors are facing raising concerns about more layoffs and cutbacks planned by Europe’s major lenders as they are struggling with zero rate.

Daisuke Uno, chief strategist at Sumitomo Mitsui Bank said that “When bank shares are making big falls and their CDS spreads are rising like this, obviously you would think something is afoot. If they keep falling in today’s session, that is going to be really worrying”.

In a conversation with former Fed chairmen, Federal Reserve Chair Janet Yellen stated that U.S economy is on a solid course. She noted that main gauges for labor markets are showing “higher than one would expect”. Therefore, although headwinds from foreign markets are posing thread to domestic expanding economy, the Fed is still on track to deploy further interest rate hikes.

The Labor Department said on Thursday that the number of Americans filing for unemployment benefits fell 9,000. The total was a seasonally adjusted 267,000 for the week ending on April 2. The decline is more than expected. Forecasts predicted that the reading of last week would reach 217,000. Initial claims for state unemployment benefits, which has been remaining under 300,000 for a year, is providing some reassurance that the economy is growing.

The record of the last ECB’s meeting was published yesterday, almost a day after the release of Fed March’s meeting minutes. The record showed that while ECB governors were broadly in agreement of the unprecedented easing measures taken by the euro area monetary authority.

Technicals
EURUSD

In a large trend, EURUSD has soared steadily more than 600 pips from the low of $1.08234 on March 2, 2016, and is heading for retesting the high at $1.14935. However, the pair has been moving sideways for a weak between $1.1339 and $1.14292, retreating slightly to trade around $1.13655. The RSI (14) has lowered to 45.19, which indicates a bearish market.

Trade suggestion

Buy Digital Put Option at 1.13339, Buy Digital Call Option at 1.14041.

USDJPY

The pair has surgeom the one-a-half-year low at 107.654 and is approaching the 23.6 Fibonacci retracement at 109.106. In the last two candles, long upper shadows indicates that the bear is still overwhelming on the market and restraining the price from ticking up. The RSI (14) still remains in the oversold territory but the indicator has inched up gradually.

Trade suggestion

Buy Digital Call Option at 109.030, Buy Digital Put Option at 108.390.

GBPCAD

The pair has been trading in a descending downtrend for more than a month. This slide may last long as the ADX (14) is becoming stronger with higher highs while the price shows lower highs, showing a bearish divergence. There are chances that the pair may break through the low of 1.83750 to test the support at 1.82182.

Trade suggestion

Buy Digital Put Option at 1.83750, Buy Digital Call Option at 1.84518.

SILVER

Silver is moving toward the moving average (20) and much likely to make a crossover after pulling back from the resistance at 15.220. Following each period of consolidation like this current one, the price tends to plunge strongly, and fall back to the lower bar. The –DI has just penetrated the +DI from below, not to mention the ADX (14) moving lower, showing that there will be a trend change soon.

Trade suggestion

Buy Digital Put Option at 14.862, Buy Digital Call Option at 15.268.

BRENT

Brent crude price is on a violent rise and is paring all 130-pip losses yesterday. This current strong rally has shoot the price out of its descending range and support Brent crude to fly higher. The RSI (14) indicator is ticking up with high possibility of entering the overbought zone.

Trade suggestion

Buy Digital Call Option at 40.977, Buy Digital Put Option at 40.230.

FTSE

The price has failed to escape from its range from $6064.30 to $6232.22 for half and a month. A small gap formed at the start of European session and the price keep inching up. A break out is not likely to happen soon as the ADX (14) is still at unclear-trend level. However, the gauge for 100 U.K blue chips may gain momentum in the next couple of hours as the RSI (14) has surpassed 50.

Trade suggestion

Buy Digital Call Option at 6222.10, Buy Digital Put Option at 6104.02.

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