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Sep 27, 2016

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Market Analysis

Home » Latest News » Option Banque Technical Analysis Report: 21-Mar-2016

Option Banque Technical Analysis Report: 21-Mar-2016

Posted by Option_Banque in Latest News - March 21st, 2016 12:14 pm GMT

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Read full technical analysis report here

The dollar witnessed a gloomy week as dovish Fed caused the green to depreciate against most of its majors. Despite continuing easing from central banks, such as BOJ, SNB, and ECB, their currencies kept rallying as demand for safe haven.

In the policy meeting last week, Fed decided to hold rate at 0.25% after the first rate hike since December and slowed down on normalization path with two rate hikes, instead of four. Against market’s expectation, Fed shared similar viewpoint with BOJ and ECB as tightening scenario seems deem.

The Japanese yen remained in uptrend regardless of BOJ’s decisiveness to push interest rate deeper in the negative territory if necessary. Demand for safe haven and speculation of a significant appreciation has boosted the yen up against the greenback. Japanese 10-year bonds yield plunged down to a record low at -0.135% as investors hope the yen rally would make up for negative rate. Today is Japan’s bank holiday so USDJPY is predicted to stabilize with moderate trading volume.

The gold price fluctuated in a wide range on mixed effect from the weakening dollar and higher risk appetite for stock markets. The precious metal is waiting for solid support to break through consolidation area. Earlier this week, there is no significant economic news so the market is expected to move silently, compared to last week.

Technicals

GBPUSD
gbp
Fig: GBPUSD Technical Chart

Chart H4 is on track to fall as low as 1.44095 from the resistance at 1.45140, formed on March 18. The dots have been following the price movement, showing a strong bullish market. However, the dot band is supposed to break the price chart and form the bearish market soon. The pair is expected to fall further then.

Trade suggestion

Buy Digital Put Option at 1.4324 and Digital Call Option at 1.4470

AUDUSD
AUDUSD is supported by EMA 10 and EMA 50 below with the current price 0.75772. The pair has been in the sharp rise, especially after the meeting point of the two moving averages. Despite two red candles at last, the uptrend is expected to last more. In both short term and long term, the pair is supposed to gain further.

Trade suggestion

Buy Digital Call Option at 0.7662 and Digital Put Option at 0.7530

GOLD
GOLD current price is now 1242.86 after falling from the resistance 1270.75, with RSI hovering below 45, pointing to the oversold territory. The commodity drops about 0.25% versus the opening price, anticipated to hit the support at 1225.44 before pulling back due to the pressure of the strong downtrend.

Trade suggestion

Buy Digital Put Option at 1235.0 and Digital Call Option at 1265.4

BRENT

After testing the resistance of 42.94 last Friday, the price is on track to fall as low as to 41.05.However, the SMA 14 (blue line) in lying under the SMA 21 (red line), showing that the commodity is still following the main uptrend, the price is anticipated to reach the support of 45.75 then surge up.

Trade suggestion

Buy Digital Call Option at 42.50 and Digital Put Option at 41.25

FTSE
ftse

Fig: FTSE Technical Chart

The index is moving in a flat trend with a range between 6050.00 and 6250.00 from the beginning of this month, except for a sudden support level of 6003.83 on 10th March. The two SMA lines keep crossing for a period of time, no clear direction given. The reading is expected to drop a little in short-term.

Trade suggestion

Buy Digital Call Option at 6226.0 and Digital Put Option at 6155.0

S&P500
sp

Fig: SP500 Technical Chart

The index just tested the overbought point and then slide to 2040.30. The two SMAs refused to cross and now is going apart, proving that the uptrend is still strong. In additional, RSI index stands at 61.57, indicating that the bull is dominant. The price seems to drop in short-term and then continue the current trend, might enter the overbought zone.

Trade suggestion

Buy Digital Call Option at 2057.0 and Digital Put Option at 2038.0

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