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Market Analysis

Home » Latest News » Option Banque Technical Analysis Report: 18-Mar-2016

Option Banque Technical Analysis Report: 18-Mar-2016

Posted by Option_Banque in Latest News - March 18th, 2016 12:03 pm GMT

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Read full technical analysis report here
The global market extended the rally on Friday, fuelled by the delay in Fed’s tightening cycle. Asian stocks outside Japan, European and futures on major U.S indexes entered a bull market as risk appetite was buoyed by the weakening in the greenback.

Federal Reserve kept its target range of 0.25% to 0.50% in the meeting in March 16, saying that the slowdown in global economy and the trend of easing from central banks are main factors dampening U.S economic outlook. In spite of a solid labor market, strengthened greenback has weakened the prospect of inflation to move back the target goal of 2 percent.

Although what happened with U.S rate was predicted by the markets, the sharply slump of U.S dollar versus its peers may be a surprise to investors. Gold and crude price, two in main commodities quoted by the greenback, has surged violently.

European market opened higher on the last trading day of the week with France’s CAC 40 and U.K.’s FTSE 100 opened 0.1% higher, while Stoxx Europe 600 opened 0.2% higher at 341.06

At 12:30 P.M GMT, the Statistics Canada is due to publish Core CPI and Core Retail Sales Index for February, which are both predicted to have a faster pace of growth than the previous month due to recovered crude price.
Technicals

EURUSD
The pair retreated from the more-than-one-month high at 1.13386, and headed for the support of 1.12220. This retreat may be a start of a contemporary consolidation as the price seems to repeat what happened in the period from March 10 to 16, before rocketing again.

Trade suggestion

Buy Digital Put Option at 1.12220, Buy Digital Call Option at 1.12870.

USDJPY
The greenback has gone sideways near the trough of 110.969 since it hit the low of 110.627 in yesterday session. The RSI (14) remains in oversold territory and poses no sign of recovery. However, a correction is expected soon and the pair may swiftly edge up to test the resistance at 112.255.

Trade suggestion

Buy Digital Call Option at 112.255, Buy Digital Put Option at 110.800

USDCHF
After two days nose diving, the pair pulled back from the low of 0.97011. In general, the U.S dollar has moved downwards against the Swissie since its rally ending on November 30, 2015. If the pair falls back, it may test the support at 0.95796.

Trade suggestion

Buy Digital Put Option at 0.95775, Buy Digital Call Option at 0.96845

SILVER
The metal fell back from the one-and-a-half-year high at $16.132 per troy ounce and is heading for the 23.6 Fibonacci at $15.772. This level may be the point at which the price bounces back as it acted like a strong resistance for more than a month, refraining the metal from taking off. The RSI (14) has just been liberated from the overbought zone, indicating a weakened bull.

Trade suggestion

Buy Digital Put Option at 15.775, Buy Digital Call Option at 16.040

DAX
The Germany index has been on a rise today, heading for the resistance at 10060.0 and may advance higher after a period of consolidation. However, the bull seems to lose its momentum as the RSI (14) has lowered to 56.04.

Trade suggestion

Buy Digital Call Option at 10060.0, Buy Digital Put Option at 0.9985.5

SPX500
The gauge for 500 U.S blue chips is extending its rally today and moving toward the high of 2080.2 recorded on December 30, 2015. The bull is completely dominating the market as the index has surged to 70.40 and entered the overbought zone. The Stochastic also remains in the overbought territory, a correction is expected soon.

Trade suggestion

Buy Digital Call Option at 2080.0, Buy Digital Put Option at 2035.0

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