Capital Trust
Capital Trust

Sep 27, 2016

11:34 PM EDT

  • New York close
  • London close
  • Tokyo open
  • Sydney open
Market Analysis

Home » Latest News » Option Banque Technical Analysis Report: 23-Mar-2016

Option Banque Technical Analysis Report: 23-Mar-2016

Posted by Option_Banque in Latest News - March 23rd, 2016 12:25 pm GMT

Read full technical analysis report here
Yesterday, Philadelphia Fed President Patrick Harker said that the central bank should consider another interest rate hike as early as next month. If the U.S. economy continues to improve, and shows the view that he would prefer at least three hikes before year-end.

As many as 34 people were killed in the Brussels attack yesterday. The attack also triggered security alerts across Europe. European stocks went down strongly, especially the tourism and leisure ones. In London, FTSE 100 dropped 1.1%, whereas, in the Eurozone, the DAX fell 1.6% along with 1.4% drop of France CAC40. The futures for Dow Jones witnessed 58 points drop (0.3%) to 17.477, S&P 500 fell 9 points to as low as 2.034, while Nasdaq inched down to 4.401.

After the tragedy, investors rushed to the safe-haven assets such as government bonds, gold, military stocks and other safe currencies, pushing them into a strong rally. The 10-year U.S. Treasuries yield rose to 1.954 percent, its highest in a week. It is now edging near last week’s seven-week high of 2.002 percent.

Market sentiment outside Europe improved in the U.S. trading session as investors focused on positive signs of global growth. This drove investors to shift from safe-haven currencies to the dollar and higher-yielding currencies. The greenbacks witnessed 3 consecutive days of rally, while the Euro drop 0.2%. The sterling continued the downtrend as the speculation about the intensifying Brexit.


EURUSD is extending a downward trend after testing the resistance of 1.13432 on March 17. The SMA 21 line (red line) is moving above the SMA 14 (green line) and not ready for crossing. The pair is currently trading at 1.12060, expected to inch up a little and then drop back, under the SMAs’ pressure.

Trade suggestion

Buy Digital Put Option at 1.1153 and Digital Call Option at 1.1242

GBPJPY current price is 159.413. The pair is showing a downtrend formed from March 11. The four recent candles present that the price has fluctuated in a quite narrow range with short bodies and shadows. RSI index is standing at 40.44, seems to reach the oversold level soon. The price is anticipated to dim more in short-term.

Trade suggestion

Buy Digital Put Option at 158.33 and Digital Call Option at 160.68

USDCAD met the support of 1.29218 on March 18 before rising up to the current price 1.30736 with the support of the dots band below. The main trend is down, so the price is expected to move sideways for a period of time and then continue the current trend.

Trade suggestion

Buy Digital Call Option at 1.3144 and Digital Put Option at 1.3005

The commodity has been fluctuated for a long time. The stochastics chart shows that the metal is approaching the oversold territory, the %K line is under the %D line, indicating that the bear is in action. Being traded at 1234.61 this moment, the price seems to rise for some consolidation before dropping back, entering the bearish market.

Trade suggestion

Buy Digital Put Option at 1225.8 and Digital Call Option at 1251.5

DAX is on track to increase as high as 9982.17, supported by the upward pressure since February. The two SMA lines has kept crossing lately, no clear direction is given. The index is anticipated to move sideways in short-term before climbing up, following the current uptrend.

Trade suggestion

Buy Digital Call Option at 10200 and Digital Put Option at 9923

US2000 is slid to the current price 1095.3 after reaching the resistance of 1105.3. The SMA 14 (green line) has lied above the SMA 21 (red line) for a period of time and seems to cross. If the two lines cross and go apart, the bearish market will be confirmed.

Trade suggestion

Buy Digital Call Option at 1110 and Digital Put Option at 1089

Share!Share on FacebookTweet about this on TwitterShare on LinkedInShare on Google+

No comments yet.

You must be logged in to post a comment.

Forex, Commodities, Indices

Daily Updates

Daily Updates

Get the latest fundamental analyses, technical analyses and the most up-to-date Forex news catered to your interests, everyday.