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Market Analysis

Home » Latest News » Option Banque Technical Analysis Report: 13-Apr-2016

Option Banque Technical Analysis Report: 13-Apr-2016

Posted by Option_Banque in Latest News - April 13th, 2016 4:11 pm GMT

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Read full technical analysis report here

Yesterday, the UK Office for National Statistics released data on core input and output prices (excluding the more volatile food, beverage, tobacco and petroleum products). According to the data, core input prices, which fell 3.4% in the year to February 2016, showed a slower pace of decline, dropping 2.6% in March. Core output prices for March marked an increase of 0.2% year on year, compared with the reading of 0.1% in the preceding month.
In addition, the nation’s consumer prices index (CPI) continued its uptrend, and rose 0.5% in the year to March 2016, supported by the rallies in air fares and clothing prices. Meanwhile, retail sales last month inched down 0.7% compared with the same period in 2015, but were up 1.4% for the whole first quarter of this year.

Hence, the UK economy is witnessing a positive growth, shoving off the investors’ optimistic view.

Meanwhile, the US Bureau of Labor Statistics announced yesterday, that import prices for March climbed 0.2% while export prices remained unchanged after sliding 0.5% in the previous month. The Federal Budget Deficit reported by the US Bureau of Fiscal Service registered at $108 billion. This is higher than the shortfall of $106.5 billion as was expected.

The dollar index DXY is surging to 94.40 from the lowest level in six months as the market expects positive data on economic growth in the upcoming data releases.

In Asia, bright signals from the second economy are leading Asian markets into bullish territory. According to reports issued today, China’s trade surplus stood at $29.9 billion, the lowest level in a year as exports last month jumped 11.5% in dollar terms, whereas imports showed a decline of 7.6%. This is the 17th consecutive month of falls. However, the Shanghai Composite Index advanced 1.4%, closing at a three-month high.
Officials from Bank of Japan (BOJ) on Tuesday restated that the central bank is willing to ease monetary policy if necessary but IMF commented that BOJ’s intervention has not been very effective in stemming the strength of the Japanese Yen.

Technicals

GBPUSD

After hitting the resistance of 1.43453, GBPUSD is on track to fall as the Parabolic SAR levels have risen above the price chart. ADX (14) stands at 36.1026 and points down, DI- just passed DI+, suggesting a selling position. The sterling is currently strong against the buck, but the pair is expected to reach the support of 1.41407.
Trade suggestion

Buy Digital Call Option at 1.43864, Buy Digital Put Option at 1.41629.

USDCHF

The Stochastics chart (14) shows that the %K line (blue line) has approached the overbought level, far-away from the %D line (red line), indicating that USDCHF is in a strong bullish market. The short-term SMA (14) just crossed and currently lies above the long-term SMA (21), assisting the pair to surge more from the support of 0.94964 formed yesterday.

Trade suggestion

Buy Digital Call Option at 0.96480, Buy Digital Put Option at 0.95778.

EURJPY

The euro dipped against the yen for a period of time after testing the resistance of 128.203 on the last day of March. However, the downtrend is becoming weaker with time as ADX (14) is pointing down and registers at 19.5882. The SMA 21 (red line) is sticking with the SMA 14 (green line), so no clear direction is currently evident. The pair is anticipated to move sideways for a while before creating a new trend.

Trade suggestion

Buy Digital Put Option at 122.718, Buy Digital Call Option at 123.652.

GOLD

Gold pared its gains, continuously falling from the resistance level at 1262.35. The current price is hovering around 1244.91. RSI is staying at 48.63 and heading into the oversold territory, indicating that the buying power is weaker and weaker. The commodity is anticipated to hit the support level at 1229.62 before bouncing back, preparing to form a head-and-shoulder pattern.

Trade suggestion

Buy Digital Put Option at $1229.62, Buy Digital Call Option at 1250.15.

SILVER

SILVER has retreated from the resistance level at 16.194, formed on April 12 and is now trading at 16.034. RSI is now hovering around level 70, indicating that the commodity is in the overbought territory. With the support of the short-term moving average below, it is expected to retest the resistance 16.194, then pull back and hit the support level at 15.813, created on March 14, 2016.

Trade suggestion

Buy Digital Call Option at 16.194, Buy Digital Put Option at 15.945.

COPPER

Today, copper continued its gains and reached as high as 2.1543 after the steep fall from the resistance 2.3273, formed on March 18, 2016. The short-term moving average has turned to below the price movement, supporting copper below current levels. RSI is hovering below 50 and heading up, indicating stronger buying power. The commodity is expected to retest the resistance at 2.2226, created on September 29, 2015.

Trade suggestion

Buy Digital Call Option at $2.2226, Buy Digital Put Option at 2.1230.

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