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Market Analysis

Home » Latest News » Option Banque Technical Analysis Report: 30-Mar-2016

Option Banque Technical Analysis Report: 30-Mar-2016

Posted by Option_Banque in Latest News - March 30th, 2016 11:02 am GMT

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Read full technical analysis report here

Today, Asian shares gained on looming expectations for U.S. rate hike this year, bruising the dollar and boosting sovereign bonds.

MSCI’s broadest index of Asia-Pacific shares outside Japan jumps 1.3 percent after 4 consecutive sessions of losses. Japan’s Nikkei was the only loser who slipped due to appreciating yen against the dollar. The index fell 0.3 percent.

Dollar trimmed the gain after Federal Reserve chair Janet Yellen stressed the need to be cautious in normalization path and highlighted external risks including oil crash and global sluggish growth. Hence, the market is wondering if there will be even one tighten step this year. The drop in the U.S. dollar helped oil prices regain a little ground, as U.S. stockpiles is forecasted to have grown by less than previous figure. Weaker dollar also makes safe-have asset like gold, silver more attractive.

After Yellen’s speech, the dollar index lost 0.8 percent in its biggest daily fall in about two weeks. Yellen’s dovish view urged investors to buy U.S. Treasuries on expectations that Fed will not take a rate hike soon, and the lower yields undermined demand for the dollar. The yield on benchmark 10-year Treasury notes stood at 1.810 percent after skidding to a four-week low of 1.805 percent in U.S. trade on Tuesday.

Japan’s factory output in February fell the most since 2011 after an earthquake broke the supply chain, surging fears of another recession and renewing pressure on policymakers to take prompt action.

Technicals

GBPUSD

GBPUSD is on track to rise as high as 1.43759 with the support of the two SMA lines below. However, the stochastics chart shows that the pair is in the overbought territory and the %K line (blue line) just crossed the %D line (red line), implying a decline in short term. The price is anticipated to inch down and then climb up, continue the current uptrend.

Trade suggestion
Buy Digital Call Option at 1.4472 and Digital Put Option at 1.4338

USDCAD

USDCAD is about to enter the oversold area as RSI is standing at 30.5570. The dots band is lying above the price movement, putting a downward pressure on the price. The pair is currently traded at 1.30693, expected to move sideways for a while before going down.

Trade suggestion
Buy Digital Put Option at 1.2978 and Digital Call Option at 1.3121

EURJPY

Reaching the resistance of 127.458, EURJPY is dropping to the current price of 127.084. SMA 14 and SMA 21 refused to meet each other and awkwardly went apart, indicating that the uptrend is still strong. The pair seems to surge up and break the current resistance after heading down to the support of 126.784.

Trade suggestion
Buy Digital Call Option at 127.73 and Digital Put Option at 126.50

SILVER

The commodity increased to the current price of 15.295 after hovering around the oversold level for a period of time. The two SMAs are sticking but cross has not happened yet. The price needs more signals to create a new trend as RSI’s reading is around the average, showing no clear direction.

Trade suggestion
Buy Digital Call Option at 15.45 and Digital Put Option at 15.21

SPX500

The index is climbing up after testing the support of 2017.64 on March 24, The current reading is at 2054.97, seems to reach the resistance of 2074.25. RSI stands at 62.6788, showing that the bull is still overwhelming and, giving support for the index’s rally.

Trade suggestion
Buy Digital Put Option at 2042.0 and Digital Call Option at 2071.0

DAX

DAX is currently traded at 9930.08, moving sideways lately while extending the gradual uptrend formed on February 11. The EMA lines just met the price chart and is about to cross each other. The index is anticipated to increase continuously when the cross happens and the lines lie under the price movement.

Trade suggestion
Buy Digital Put Option at 9841.0 and Digital Call Option at 10075.0

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