Daily Market Updates & Trading Signals By Option Banque

[Option_Banque]

Rates Of Australia And NZ Are In Focus After Big Guys Have Set The Market’s Tone

In the last trading day of this week, the US dollar declined significantly against its peers after the important data of labor market were released. The dollar index DXY stumbled to a three-week low at 93.87, down 1.8% from the previous close on Thursday. According to the Bureau of Labor Statistics, there were only 38,000 jobs creations last month, the most sluggish growth since September 2011.
Bad luck seems not to disengage the U.S even unemployment rate in May posed at 4.7%, a record low in almost nine years, as Americans are dropping out of the labor force.
A slowdown in US labor market contributed to raising concerns over economic growth speed and stability. As a result, investors are currently holding a doubt of rate hike possibility in June.
At a meeting on Thursday, the European Central Bank (ECB) decided to keep its benchmark rate unchanged at 0.00%. In addition, officials agreed to raise the inflation forecasts for the Eurozone this year to 1.6% from 1.4%, while the estimate for next year remains at 1.7% and slides to 1.7% from 1.8% in 2018. ECB President Draghi also commented that this area still witnessed subdued prospects due to the slowdown in emerging markets and governments’ efforts to upgrade their economies have not taken into effect widely.
On the same day, the Organization of the Petroleum Exporting Countries (OPEC) failed to agree to a clear oil-output strategy as Iran insisted on raising production to regain market share lost during years of sanctions. Oil prices found support again in U.S. Energy Information Administration’s announcement of a fall of 1.4 million barrels in crude inventories, the third weekly decline in a row. Closing this week, oil prices still hovered around the threshold of $50 per barrels, a record high since last October.
On the first day of June, China’s statistics agency reported that manufacturing PMI of this country in May matched the previous level at 50.1, while the index for non-manufacturing sector posed at 53.1 in comparison with 53.5 in April. The second largest economy is witnessing signals of stabilization lately as the official factor gauge remained above the average for a third month.
By contrast, the British economy grew in a sluggish way last month. Data coming on the first three days in June showed that the PMI index for the manufacturing and services registered at 50.1 and 53.5 respectively, higher than the preceding month’s but still well below the readings in one year earlier.
The central banks of Australia and New Zealand will release their interest rates in the upcoming week. While Australian cash rate is expected to be kept at 1.75% as deployed in May, the Reverse Bank of New Zealand is awaited to adopt a lower rate at 2.00%, compared with the level of 2.25% in two months before.
On Monday, the FED Chairwoman Yellen is scheduled to talk about the economic outlook and monetary policy in Philadelphia. Due to the weak jobs report in May, her speech is likely to be used as a market reassurance that the central bank will soon seek new measures to stimulate the economy.
Next Friday, the Statistics Canada will publish the report of labor market in May, with analysts’ forecasts that there will be 1,100 people employed during last month and the unemployment rate may stay unchanged at 7.1%.

 

[Option_Banque]

Daily report on June 6, 2016
The US Dollar plunged to the lowest level in nearly a month after US nonfarm payrolls indicated the slowest job growth in more than 5 years. This has weighted on market expectations that Fed will raise the interest rate this summer. In particular, the number of jobs created during May was 38,000, far below the market forecast of 164,000.
The data on the country’s manufacturing sector also disappointed investors with a drop to 52.9 from April’s 55.7. According to the CME Group, the market sees only a 6% chance of a Fed rate hike in June now, while this figure was 21% last Thursday. The dollar index, measuring the strength of the greenback against a basket of major currencies, still hovers around Friday’s low of 93.855, the lowest level since May 12.
Brent crude prices reached $50 per barrel on Monday, up 0.8% from their last settlement, as the attacks on oil infrastructure in Nigeria tighten supplies further. U.S. West Texas Intermediate (WTI) crude futures were last trading at $49.11 per barrel, adding 49 cents.
The British Pound lost more than 1% in the early Asian session today, after many polls published during the weekend reported a lead for the “Leave” group compared to the “Remain” group.
Gold approached the highest level in two weeks on Monday thanks to the support from the weakening dollar, and the sell-off on global markets.

Technicals

USDJPY


Fig. USDJPY H4 Technical Chart
USDJPY has been in a bearish market as seen in the red parabolics sar band moving above the price chart. A rebound has just stepped in, as the RSI has shown signs of escaping from oversold territory. However, this uptrend may just be a small consolidation due to the fact that both short-term and long-term EMAs are putting pressure on the pair, which is expected to push the price to the support level at around 106.353.
Trade suggestion
Buy Digital Put Option from 106.968 to 106.353 valid until 20:00 June 6, 2016

EURGBP


Fig. EURGBP H4 Technical Chart
The Euro is on track to gain against the sterling as indicated by the appearance of the green signal trend arrow. ADX has rocketed to 41, along with DI+ (green line) crossing up above DI- (red line), suggesting a strong buying trend for the pair EURGBP. The up-move is not anticipated to be interrupted till the price hits the resistance at 0.79460, the highest level in nearly a month.
Trade suggestion
Buy Digital Call Option from 0.78894 to 0.79460 valid until 20:00 June 10, 2016

CADCHF


Fig. CADCHF H4 Technical Chart
After plunging strongly from a one-month high at 0.77345, the pair CADCHF has been moving sideways in a wide range. The pair is under downward pressure from the red parabolics sar and the short-term moving average above. RSI is hovering around level 37 and heading down, indicating strong selling power. The price is likely to hit the oversold territory soon.
Trade suggestion
Buy Digital Put Option from 0.75243 to 0.74564 valid until 20:00 June 10, 2016

GOLD


Fig. GOLD H4 Technical Chart
Gold gained significantly after a long string of losses. The commodity has been in the overbought territory with RSI staying above level 70, indicating that a reversal is about to happen soon. The price is now tiptoeing in the area around Fibonacci 50.0%. It is expected to go down and hit the zone of Fibonacci 38.2 before surging again.
Trade suggestion
Buy Digital Call Option from 1233.71 to 1254.42 valid until 19:00 June 6, 2016

BRENT


Fig. BRENT H4 Technical Chart
Brent has been moving cautiously between the range of 48.65 and 50.94 since the middle of May. The commodity has been up slightly today touching $50.09 per barrel, supported by the EMA 10 below. RSI is moving to the overbought territory, encouraging long positions. The price is expected to continue its upward trend, and retesting the recent highs.
Trade suggestion
Buy Digital Call Option from 50.09 to 50.94 valid until 19:00 June 6, 2016

FTSE


Fig. FTSE H4 Technical Chart
FTSE is now trading at 6224.0, up 0.07% compared with the last settlement. The index has climbed from the support level at 6131.9 since the beginning of the month with the support of the short-term EMA below. RSI (14) is above the level 50 and heading to the overbought zone, suggesting a continuing bull market. Buying positions are encouraged.
Trade suggestion
Buy Digital Call Option from 6219.3 to 6278.9 valid until 19:00 June 6, 2016 level 50 and heading to the overbought zone, suggesting a continuing bull market. Buying positions are encouraged.
Trade suggestion
Buy Digital Call Option from 6219.3 to 6278.9 valid until 19:00 June 6, 2016

 

[Option_Banque]

EUR/USD Steady Ahead Of Yellen Speech – Bulls Ahead In Near Term

On Monday, the EUR/USD pair is trading sluggishly around the 1.1340 area, dipping lower in sympathy with a sharp fall in the GBP/USD major. The dollar index was trading at 94.199, up 0.18% from its previous close of 94.029.
Last week, the pair reversed from 2-1/2 month lows and moved sharply higher on Friday, after disappointing May headline Nonfarm payrolls data and weaker-than-expected US ISM non-manufacturing PMI numbers. The world’s largest economy added just 38,000 new jobs last May, the slowest in six years and much below analysts’ expectations of around 160,000. The unemployment rate fell to 4.7%, the lowest since 2007, whilst wages posted a modest growth.
Additionally, the latest ISM Non-manufacturing PMI dropped to 52.9 in May from the previous month’s 55.7 – well below expectations and the lowest in two years. These data readings have cast serious doubts on the economic recovery and introduced uncertainty over when the Federal Reserve might hike interest rates. Within minutes of Friday’s release, the US dollar took its biggest beating of the year, collapsing 1.6 per cent to a three-week low against a basket of currencies.
Today at 1:00 EDT, the release of German factory orders reported a decline in April as demand for investment goods from outside the Eurozone slumped. Orders fell 2% from the prior month, compared with economists’ forecast for a drop of 0.4%. But according to analysts, the drop was more of a counter-movement to rather strong figures from March, thus the underlying trend in orders is more or less unchanged and this news does not seem to have affected the market.
The key focus today would remain on the Fed Chair Janet Yellen’s speech in Philadelphia later today during the NY session. Yellen is due to provide the final hints on the economic outlook and monetary policy of the US central bank before its June meeting. Despite the looming ‘Brexit’ concerns and weaker employment report for May, Yellen is expected to maintain the hawkish tone and keep doors open for a near-term Fed rate-hike. However, it seems unlikely that her words will affect the market’s negative sentiment towards the dollar. Overall, the macroeconomic calendar will be light this week, with attention shifting towards June 15th FOMC meeting.

Fig. EURUSD D1 Technical Chart
On the daily chart, we can see the single currency has abandoned the area of recent highs against the dollar, taking EUR/USD back to 1.13590. RSI (14) remains above the average at 58.18, showing that the bullish power is still dominant. The stochastic is approaching the overbought zone, with %D line catching up with %K line. The pair is expected to climb further.
Trade suggestion
Buy Digital Call Option from 1.13503 to 1.14642 valid until 20:00 June 10, 2016
Buy Digital Call Option from 1.12200 to 1.14551 valid until 20:00 June 10, 2016

 

[Option_Banque]

Daily Report On June 07

After Yellen’s speech overnight, the greenback is on track to recovering slightly, but still hovering around the three-month low. The dollar index DXY closed Monday’s trading session at 94.03, only 20 points higher than the previous settlement.
At the World Affairs Council meeting in Philadelphia, the FED Chief said that she still saw good reasons for a positive growth in employment despite the disappointing data from the Non-farm employment report in May, which was released on Friday. She also commented that the central bank would increase interest rates, but did not refer to the timing. Currently, markets are pricing that a rate hike this month has a 2% chance and July is at 27.5%. The odds for raising rates by the December meeting are at less than 50%.
Early this week, Markit published the retail PMI for the euro area, which came in at a higher-than-average reading in May after falling in each of the two prior months. The latest data came in with a reading of 50.6, the highest level since last November. This marks an improvement compared with the 47.9 reading in April.
Results from the Reserve Bank of Australia (RBA) meeting on Tuesday reported that the central bank decided to keep its benchmark rate unchanged at 1.75. This decision matched with economists’ forecast of an unchanged rate in June. The RBA Board stated that the current policy would be consistent with the target of maintaining sustainable growth in the country’s economy and inflation returning to the target level over time.
In the Asian trading session today, oil prices are moving around seven-month highs amid the crippling attacks on Nigeria’s oil industry and fresh draws in US crude inventories. The West Texas Immediate crude last settled at $49.82 per barrel, half a dollar lower than the record high created on May 26.
Technicals

EURUSD
EURUSD is currently moving around the area of 1.13567 after rising sharply from the support of 1.11343 since last Friday. RSI (14) has escaped the overbought territory but still hovers around this threshold, indicating that the bullish power is still strong. The pair is supposed to move sideways for the rest of the day before beginning a new trend. The resistance ar 1.13926 is expected to be tested again.
Trade suggestion
Buy Digital Call Option from 1.13537 to 1.13926 valid until 20:00 June 7, 2016

GBPJPY
The pound surged up strongly against the yen, leading this pair to get out of the oversold territory after a considerable period. The price is tracing an up-move from an eight-week low of 152.951. An increasing RSI (14) implies that the bull is knocking at the door. The trend indicator has suggested a short position since the first day of June, with a significant move of 247 pips up to now. Hence, the pair is anticipated to extend its current movement and surge higher.
Trade suggestion
Buy Digital Call Option from 156.449 to 157.794 valid until 20:00 June 7, 2016

USDCAD
The greenback is moving sideways, pausing for breath after a steep dive to hit a low of 1.28019 on friday. The stochastics chart shows that the pair has plunged into the oversold territory for a period of time and the %K line (blue line) has caught up with the %D line (red line). The price is expected to consolidate for a while before resuming the downtick, taking the pressure from the two moving averages above.
Trade suggestion
Buy Digital Put Option from 1.28063 to 1.27660 valid until 20:00 June 7, 2016

SILVER
SILVER is stuck in a narrow range due to an uncertain greenback. A green arrow has appeared under the price chart since June 03, signaling a long position in the commodity. The price is forecast to attempt the resistance of 16.626, around the area of the level 50.0% of Fibonacci retracement.
Trade suggestion
Buy Digital Call Option from 16.442 to 16.571 valid until 20:00 June 7, 2016

COPPER
COPPER is on course to tumble down significantly after reaching a month high of 2.1439 early yesterday’s trading session. RSI (14) got out of the overbought territory and heads down the reading of 39.7229, implying that the bearish force is overwhelming. The two moving averages are crossing the price chart, preparing to cast shadow on the commodity. The support of 2.0502 is supposed to be tested once again.
Trade suggestion
Buy Digital Put Option from 2.0745 to 2.0586 valid until 20:00 June 7, 2016

SP500
The stochastics chart shows that SP500 has been close to the overbought territory for a while but there are no signals of a pull back as the %D line and %K line are still separated. The index is moving up after testing the support of 2083.25 once again, and failing to break this level. A long position in short-term is encouraged.
Trade suggestion
Buy Digital Call Option from 2109.60 to 2119.33 valid until 20:00 June 7, 2016​

 

[Option_Banque]

Buy FTSE 100 Calls – Mining Stocks And Yellen Supporting Up-Move

On Tuesday, the UK benchmark index continues to trade higher, with investors digesting Federal Reserve Chair Janet Yellen’s latest comments. Yellen gave a speech in Philadelphia overnight, in which she said the US was on track towards further rate hikes, although no indications were given on when this would happen. The Footsie closed the last session 63.77 points in the green, at 6273.40, as traders grew more confident that a US rate hike would be postponed following worse than expected jobs figures last week.
The commodity-heavy FTSE 100 index continues to benefit from a weaker U.S. dollar following Friday’s disappointing jobs report. A lower dollar means commodities are cheaper for holders of other currencies. Noises from the U.S. about China reducing its excess steel capacity as part of a bilateral trade agreement are also helping support a surge in metals prices.
The jump in commodity prices managed to offset fears of Brexit that dragged down house builders on Monday, when a flurry of recent polls showing a lead for voters wanting to quit the EU, dragged the pound to a three-week low.
Mining stocks are currently topping the FTSE 100. Miners Anglo American, Rio Tinto, BHP Billiton, Antofagasta and Glencore all rallied between 5% and 11.1%. Among the top fallers, however, British housebuilding stocks Persimmon, Barratt Developments and Taylor Wimpey all fell by between 1.1 percent and 1.6 percent.
Today’s macroeconomic calendar includes a third estimate for the Eurozone’s first-quarter gross domestic product. Growth is expected to have been revised up to 0.5 percent quarter-on-quarter from 0.3%, but cut to 1.5% year-on-year from 1.6%.
While no blue-chip companies are scheduled to update investors on their recent performance this morning, Shell will hold its Capital Markets Day, which will mark the oil major’s first strategic update since it completed its merger with former peer – the smaller, London-listed BG Group.

Fig. FTSE100 D1 Technical Chart
The benchmark FTSE 100 opened marginally higher this session, currently settling at 6317.90. The index has witnessed an uptrend, proven by the green signal indicator arrow and the SAR band below the price line. The stochastic is approaching the overbought zone and %K line has arrived into the overbought zone far ahead of %D line, indicating that the buying force is still strong. RSI is as high as 61.45, suggesting a further climb to test the resistance at 6375.17.
Trade suggestion
Buy Digital Call Option from 6225.95 to 6375.17 valid until 20:00 June 10, 2016

 

[Option_Banque]

GBP/USD Recovers On Upbeat UK Manufacturing Data

Currently, the cable is recovering sharply on upbeat UK manufacturing data, after trading around a flat-line following yesterday’s volatile session.

Today at 3:30 am EDT, UK industrial and manufacturing production data both reported improved numbers, despite previous expectations that they remain unchanged. The UK manufacturing output that makes up around 80% of total industrial production recorded a 2.3% monthly growth in May, while industrial output registered a growth of 2.0%. Sterling immediately gained as the pessimistic mood surrounding ‘Brexit’ eased somewhat following the data release.

The major has earlier been supported on the back of broad based US dollar weakness and upbeat Chinese trade data, which showed exports matching the estimated drop and imports witnessing a lesser than expected decline.
Overall, Sterling is increasingly volatile as the June 23 referendum gets closer and polls predict different results. On Monday, two polls reported that the majority favour leaving the EU, which sent the UK currency to the lowest level in 3-weeks against the U.S Dollar. However, the Pound recovered some ground the next day after a couple of new polls showed the “Remain” camp was holding a narrow lead. But for both polls, the lead was just 1%.

Meanwhile, the dollar plumbed to a fresh four-week trough against a basket of currencies on Wednesday. The dollar index, which tracks the greenback against a basket of six rivals, edged down 0.1 per cent to 93.740 after dropping to as low as 93.695, its lowest since May 11.

The US dollar has been tumbling after Federal Reserve Chair Janet Yellen failed to give any hints about the timing of further interest rate hikes, following Friday’s release of shockingly weak US jobs data. A June US rate hike is now out of the question and the focus is whether the Fed provides any hints of a July hike. There are no major US indicators until the Fed’s policy meeting next week, and the dollar is likely to remain bearish until then.

Fig. GBPUSD D1 Technical Chart

The cable is currently seen trading at 1.45327. RSI (14) is hovering around the average level at 52.04, indicating an unclear direction. Parabolic SAR continues signaling an uptrend as the parabolics band is still below the current price. The Stochastic has escaped from the oversold zone, and the %K line is above %D line showing that the bullish trend is in motion. The pair is likely to test the resistance at 1.45737 soon.

Trade suggestion
Buy Digital Call Option from 1.44776 to 1.45737 valid until 20:00 June 10, 2016

 

[Option_Banque]

Daily report on June 8, 2016

On Tuesday, the Australian dollar gained after the Reserve Bank of Australia (RBA) decided to keep the interest rate unchanged, along with hinting that there was no urgency to further ease the monetary policy due to strong economic growth. As expected, the RBA maintained the rate stable at a record low of 1.75%, sending the Aussie higher.

Today, the currency retreated slightly to $0.74423 after reaching a one-month peak at 0.74630 yesterday.
On Wednesday, the World Bank has reduced its global growth forecast for 2016 to 2.4% from the earlier estimates of 2.9% in January, due to low commodity prices, weak demand in advanced economies and capital flows. The bank maintained China’s growth forecast unchanged at 6.7% this year after 2015’s 6.9%. It also predicted that growth in the world second largest economy will slow down to 6.3% in 2018.

After hitting a one-month high at 0.6982 on Tuesday, the Kiwi was last trading at $0.6977. The New Zealand central bank will announce its monetary policy decision on Thursday. It is anticipated to hold the rate at a record low of 2.25 percent on the recent stabilization in inflation and some cooling off in speed of growth in housing prices.

Oil prices stayed steady near the highest level in around 8 months today, supported by expectations of a large drawdown in the US crude inventories and worries about the attacks on Nigeria's oil industry. In particular, US crude oil inventories are expected to drop by 3.2 million barrels this week, following the 1.4 million barrel fall the week before. Nigeria’s oil production was brought to the lowest level in 20 years due to militant attacks on oil and gas pipelines.

Gold stood near the two-week high on Wednesday against the weaker dollar, rallying sharply after disappointing nonfarm payrolls data, with only 38,000 jobs created during May compared with April’s 123,000. Gold has climbed nearly 4% since the release of the employment data.

Technicals

USDCHF
USDCHF has dropped continuously from the resistance level at around 0.99583 and is now trading at the one-month low of 0.96473. Although the pair is in the oversold zone with RSI staying at 19.8, further market movement to the downside continues receiving some support from the movement of the two MA's above. The short-term MA100 is very likely to cut the long-term MA200 from above. However, as the price is facing a solid support at 23.6% Fibonacci retracement, a consolidation is expected ahead of another steep plunge.
Trade suggestion
Buy Digital Put Option from 0.96470 to 0.96212 valid until 20:00 June 10, 2016

EURJPY
EURJPY is trading at around 121.832, under the pressure of the short-term moving average above. ADX is at level 31, combined with DI- (red line) crossing DI+ (green line), suggesting a strong bear trend. RSI is lingering below level 50, indicating that no clear direction has been formed yet. The pair is anticipated to witness slight gains to test the levels around 122.164 before pulling back.
Trade suggestion
Buy Digital Put Option from 122.164 to 121.395 valid until 20:00 June 10, 2016
In general, AUDZND is in a downtrend with the current price at 1.06681. The DI- (red line) has just crossed the DI+ (green line) and is heading up, suggesting a dominance of sellers. With RSI staying around level 52 and pointing down, the pair is expected to continue its bearish movement, retesting the support level at 1.06167, created on May 23, 2016.
Trade suggestion
Buy Digital Put Option from 1.06584 to 1.06167 valid until 20:00 June 10, 2016

GOLD
After soaring from around 1210.99, the gold price has been moving sideways around the area of Fibonacci retracement 50.0% with the support of the parabolics sar band below. The commodity is in the overbought zone as RSI’s reading is above level 70. The buying power still seems strong, which may push the market further. The price is expected to hit the zone of Fibonacci 61.8.
Trade suggestion
Buy Digital Call Option from 1247.57 to 1254.85 valid until 20:00 June 10, 2016
WTI is on track to rise as high as $50.90 per barrel with the parabolics sar band support below. The commodity is about to enter the overbought territory with RSI hovering around level 68 and heading up. The ADX is now at level 42, along with DI+ (green line) far higher than the DI- (red line), signaling a strong bullish trend. The up-move is anticipated to last for another 2-3 trading days, after which a pull back may occur.
Trade suggestion
Buy Digital Call Option from 50.36 t0 51.04 valid until 20:00 June 10, 2016

DAX
DAX has just retreated from the resistance level at around 10314.47. The index is moving sideways around the area of Fibonacci retracement 61.8% currently, with RSI lingering at level 56 and pointing down. Lower highs have been formed, not to mention the trend indicator's selling signal that appeared last week, suggesting short positions. The price is expected to break through the 61.8% and reach the Fibonacci 50.0% area.
Trade suggestion
Buy Digital Put Option from 10314.47 to 10197.25 valid until 20:00 June 10, 2016[/B]

 

[Option_Banque]

Momentum Favouring Longs As Oil Hits 2016 Highs – U.S. Crude Inventories Drop

Oil prices remained near 2016 highs in early trading on Thursday, buoyed by a fall in U.S. crude inventories, a weaker dollar and strong demand amid the ongoing supply outages in Nigeria.

Data from the U.S. Energy Information Administration (EIA) reported that U.S. crude stocks last week fell by 3.2 million barrels versus analysts’ expectations for a 2.7 million-barrel drawdown, marking their third consecutive weekly fall.

Oil has also benefited from a surge in general investment interest in commodities, as concerns about the possibility of the U.S. Federal Reserve increasing interest rates later this month, abated following weak jobs data that reduced dollar strength. A weaker greenback, down around 2.4 percent this month against a basket of other currencies, makes dollar-traded fuel imports for countries using other currencies cheaper.

Strong import data in May from China, the world’s second-largest oil consumer, also added a layer to the current bullish sentiment.
Meanwhile, turmoil in Nigeria has shown almost no sign of stabilization. Multiple attacks on key pipelines and facilities have reduced Nigeria’s daily oil output to around 1 million barrels.

Crude oil prices are now hovering near a 10-month high, but whether the rally will sustain for much longer remains doubtful, as higher prices and profitability are likely to encourage a stream of production restarts.

The EIA said U.S. output increased by 10,000 barrels last week compared with the week before. The number of active rigs also increased by 9 to 325, raising questions about whether the rebounding market is already leading U.S. producers to pump more. Traders also warned of an ongoing build in refined product stocks in the United States and Asia.

Investors will still be awaiting any signals of a Federal Reserve rate hike either in July or September, which could also act as a dampener to the current optimism.
With fundamentals weighing both for and against higher prices, many traders and analysts say that a price tag of $50-60 for a barrel of crude is a fair value for oil under current conditions.

Fig. WTI D1 Technical Chart

On the daily chart, U.S. West Texas Intermediate (WTI) crude is trading higher at $51.84 a barrel, extending gains above the $50 per barrel mark. Stochastics are in the overbought zone, and the %D line is catching up with %K line. RSI remains strong at 73.32 after hitting the overbought point. The price is likely continue rising to the resistance at 53.37.
Trade suggestion
Buy Digital Call Option from 49.59 to 53.57 valid until 20:00 June 10, 2016

 

[Option_Banque]

Daily Report on June 09, 2016

Early on Thursday, the Reserve Bank of New Zealand disappointed expectations for an interest rate cut, deciding to stand pat. The NZ benchmark rate was kept unchanged at 2.25% for the third straight month. The Kiwi immediately made a big move to surge to a one-year high of 0.71380 against the greenback.

The Office for National Statistics yesterday released data on UK production for April. Data came in with an annual growth of 1.6% in total production output, thanks to the gains in all 4 main sectors, especially the 0.8% increase from manufacturers’ activity. A bright signal from the economy has buoyed the pound to trim the losses versus the euro, to climb up to 0.78705 in today’s Asian trading session.

Meanwhile, Japan’s Cabinet Office on Thursday’s morning announced that core machinery orders in April witnessed a worse-than-expected fall of 11.0% in comparison with the previous period. This marked the largest plunge in the last two years.

Oil prices today, are still holding around a record peak, near the highest levels since the beginning of this year. Crude prices are flying high against a weak dollar and enjoying support from a drop in US crude inventories. The Energy Information Administration on Wednesday reported that the stockpiles for the week ending June 03 extended the draw downs of the past several weeks, falling by 3.2 million barrels as economists’ had forecast. The global benchmark, West Texas Immediate crude, is currently trading at $51.63/barrel, near the last settlement.

Technicals

EURUSD
After a brief consolidation, the euro resumed its upward movement against the greenback, leading the pair EURUSD to fly higher from the support of 1.13244 formed on Monday. ADX (14) has jumped to the reading of 59.5703, showing that the bullish trend is very powerful. Even though the price is facing stiff resistance at the 61.8% Fibonacci retracement, the distance between the two MAs has widened, signaling a possible break out. The price is anticipated to continue its up-move and a long position is suggested.
Trade suggestion
Buy Digital Call Option from 1.14015 to 1.42555 valid until 20:00 June 11, 2016

GBPAUD
GBPAUD is extending its downtrend since the end of May having failed at the resistance of 2.04369. The pair has plunged into the oversold territory since some time now, and is currently seeking an opportunity to reverse into an uptrend as RSI (14) is standing flat at 24.7571. However, the two moving averages, which hang over the price, still cast a shadow on the pair. Hence, the price is expected to hit the support of 1.92859 before rising up.
Trade suggestion
Buy Digital Put Option from 1.93620 to 1.92960 valid until 20:00 June 11, 2016

USDJPY
The red trend indicator hanging over the price chart has signaled a short position on the pair USDJPY since June 01. Though, a relatively high ADX (14) implies that the current trend is still strong, the pair has witnessed a significant move of 305 pips up to now as shown by the trend indicator. Thus, the downtick is expected to die down soon after the price hits the support of 106.104.
Trade suggestion
Buy Digital Put Option from 106.563 to 106.207 valid until 20:00 June 11, 2016

SILVER
After reaching a nine-week low of 15.798 early in June, SILVER has taken flight with support from the parabolics band below, to surge sharply higher. RSI (14) registers at 83.3925, indicating that the commodity has been in the overbought territory since a while. A reversal into a downtrend is likely to happen soon. However, the price could retest the resistance of 17.383. A long position in the very short-term is encouraged.
Trade suggestion
Buy Digital Call Option from 17.172 to 17.344 valid until 20:00 June 11, 2016

BRENT
Brent is witnessing a sharp up move, heading to six-month high at around 54.269. All the indicators are supporting the price surging higher. ADX has soared to 36.9072, with the +DI line far above the –DI line. The two moving averages also keep moving under the price with the distance narrowing. A breakout past the resistance of 54.269 is expected in the near term.
Trade suggestion
Buy Digital Call Option from 52.95 to 53.47 valid until 20:00 June 11, 2016

NASDAQ100
The bullish power of the NASDAQ100 seems to have been exhausted as the index currently seems stuck in a range between 4475.59 and 4544.72. RSI (14) hovers around the average, hinting no clear direction for the price movement. The trend indicator has suggested a long position since May 23, with a substantial move of 1440 pips. Hence, the index may continue trading in a range bound fashion for some time, before beginning a new trend.
Trade suggestion
Buy Digital Put Option from 4496.65 to 4444.52 valid until 20:00 June 11, 2016

 

[Option_Banque]

USD/CAD Call Options Recommended As Oil Dips, Ahead Of Canadian Jobs Data

The recent retracement in oil prices from fresh 2016 highs has removed tailwinds from the Loonie, as it is the country’s largest export and has an outsized influence on the Canadian current account. Oil prices fell on Friday, as a strong U.S. dollar ignited profit-taking in crude by investors. A stronger dollar makes greenback-denominated oil less attractive to holders of the euro or other currencies.

However, Continuing threats by militants against Nigeria’s oil industry and fear of further security incidents that could hit supplies worldwide, have limited the losses in crude.

In addition, Bank of Canada Governor Stephen Poloz rang the alarm bells on the housing market, in comments on Thursday – especially in Toronto and Vancouver. Concerns are rising over the next move in Canadian monetary policy, and whether the BOC would consider raising rates to cool a localized bubble.

Meanwhile, the dollar pushed higher against other major currencies today after a report showed that jobless claims in the US unexpectedly fell last week. The dollar index stood at 94.185, pulling away from a five-week trough near 93.400.

The U.S. Department of Labor said the number of individuals filing for initial jobless benefits in the week ending June 4 decreased by 4,000 to 264,000 from the previous week’s total of 268,000. Analysts had expected jobless claims to rise by 3,000 to 270,000 last week, after Friday’s dismal employment report for May showed the slowest rate of jobs growth since September 2010. The improved data boosted optimism over the strength of US economy, and a near-term rate hike as early as July is now anticipated.

Ahead in the session, Canadian labour market figures will take centre stage, with no major US indicators until the Fed’s policy meeting next week. The Canadian economy is forecast to add 3,100 new jobs after losing 2,100 last month. The unemployment rate is expected to remain unchanged at 7.1%.

Fig. USDCAD D1 Technical Chart

The pair is extending gains to 1.27357, keeping the trade above the 1.2700 mark for the time being. RSI (14) is still hovering as low as 38.20 near the oversold territory, suggesting that the selling power remain very strong. ADX is at 31.68, along with DI- staying above DI+, indicating a bearish market. The pair is anticipated to test the resistance at 1.28965 before falling back .
Trade suggestion
Buy Digital Call Option from 1.25764 to 1.28965 valid until 20:00 June 10, 2016

 

[Option_Banque]

Intel Call Options Attractive – Price And Earnings Estimates Bullish

Intel Corporation released its quarterly earnings of $0.54 per share in April, beating analyst estimates of $0.49 for Q1, 2016. Wall Street predicts that the company’s Q2 earnings shall come in at $0.53 per share. These are analyst estimates for the current fiscal quarter and the actual earnings shall be released on July 20th 2016, for the period April-June 2016. The stock is expected to trade between $26 and $45 during the year, based on market estimated. These earnings estimates can have a major impact on the company’s stock price if the actual number differs significantly from the estimates. Stock prices of companies with significantly positive earnings data are expected to show out-sized positive price performance, while those with negative surprises may get beaten down more than expected, given the overall economic uncertainty.

The stock closed yesterday’s session at about $32.03. The median 12-month price target of 34 analysts covering the company is $36, signaling that the stock could gain further. Of all the estimates, the highest analyst price target is $42, which implies a gain of 69% within the next 12 months. Currently, there are 16 analysts rating the stock a buy while 9 rating Strong Buy. There are 15 equity firms suggesting a Hold and 1 considering it a Sell.
Today, Nomura Securities CEO Brian Krzanich, has stressed that Intel could continue to improve its profitability in PCs in spite of the 5-8% decline in units sold. He said that the losses in the mobile sector could recover in 2017. The firm estimates the mobile losses to come in at $2.5 billion, or $0.40 per share.

The investment banking company also projects the earnings per share for the fiscal year of 2016 and 2017 to be $2.44 and $2.69, respectively. It emphasized the Buy on INTC stock, with the price objective of $35, representing a 7.25% upside compared with the current trading price of $32.43.

Fig. INTC D1 Technical Chart

Intel stock is on track to rise as high as 34.49 with support from the green parabolics band below. The stock is about to enter the overbought zone as RSI is now staying above 70. ADX is at 38.50, with the DI+ (green line) crossing up and heading far away from the DI- (red line). The stock is expected to continue its up-move for 1-2 days, and a reversal/correction may happen thereafter.

Trade suggestion
Buy Digital Call Option from 32.45 to 34.49 valid until 20:00 hours June 17th , 2016

 

[Option_Banque]

Investors Buying Yahoo Put Options Amid Low EPS And Asset Sale Plans

In April, Yahoo Inc. had posted its adjusted Q1 earnings per share of $0.08, compared with earnings of $0.15 in Q1 2015. Yet, this figure topped analysts’ expectation of $0.07. Gross revenue for the quarter also fell to $1.09 billion on a yearly basis, against the comparable year-ago number of $1.23 billion. The company’s second-quarter earnings report is scheduled to be published on July 19th, 2016. Wall Street predicts that the company’s Q2 earnings per share will come in at $0.10. Analyst forecasts for the Q2 EPS ranges between $0.05 and $0.16, while the consensus range for revenues is $1.05 billion-$1.1 billion, with an average of $1.08 billion.

Yahoo Inc is reportedly looking at several bids for its core internet assets. U.S telecommunications rivals Verizon Communications Inc and AT&T Inc have made it to the third and final round of bidders for Yahoo! Inc.’s core assets. Verizon Communications Inc offered $3.5 billion for Yahoo!’s core assets only, excluding Yahoo!’s patent intellectual property and real estate. Meanwhile, AT&T Inc reportedly bid about $5 billion for Yahoo!’s core business, patents and real estate.

However, no matter which telecommunication firm wins the bid, Yahoo Inc is expected to gain significantly from the sale. A telecommunication company could provide Yahoo Mail with broader distribution over mobile devices. This would pose a big threat to Gmail and Apple Mail, which lead the downloads and installations on Android and Apple devices. Additionally, Yahoo’s media unit could get a similar boost.

Moreover, recently, the company announced a three-year partnership with one of the largest application software providers, Oracle, with a view to improving its search business. Yahoo Inc’s attempt to ramp up its search engine market and search business should have a positive impact on second-quarter earnings report.
In a note published Wednesday, SunTrust analyst Robert Peck said that the valuation of three Yahoo-owned assets – Yahoo Japan royalties, patents, and real estate property – are not well understood by investors and could have “material upside” to the future bids for the company.

Yahoo’s currently seeking offers for parts of its business, including its core internet properties and ownership stake in Yahoo Japan. Peck last week ascribed a $6 billion to $8 billion price tag to it.

Fig. YAHOO H4 Technical Chart

On the chart H4, the stock is moving sideways and has been stuck between 38.11 and 35.51, around the 23.6% Fibonacci retracement. RSI (14) has slipped to 43.5665, signaling that a downtrend may be around the corner. The parabolic SAR band is still moving above the price, indicating that the stock is in a bearish market. A bounce-back may occur if the level 23.6% of Fibonacci retracement is tested.

Trade suggestion
Buy Digital Put Option from 35.51 to 36.96 valid until 20:00 hours June 17th, 2016

 

[Option_Banque]

Call Options Favoured As SP500 On Course To Test Yearly Highs

SP500 is making some gains today after slipping for four consecutive sessions. The index is on track to testing some near term resistance at 2076.900, adding 0.25% in comparison with the closing price yesterday after positive US retail sales data.

US retail sales were reported with a significant rise in May as Americans bought more goods and services, indicating that consumers still feel confident in the economy to stick to their usual spending patterns in spite of the slowdown in the non-farm payrolls data. According to the US Commerce Department, retail sales witnessed a 0.5% rise in May after soaring around 1.3% in April. Excluding the sales of automobiles, gasoline, building materials and food services, retail sales climbed 0.4%, following April’s 1.0% increase.

The dollar index, measuring the strength of the greenback versus other major currencies, approached a one-week high at 94.92.

The SP500 energy sector also recovered slightly today with gains in oil prices after the International Energy Agency (IEA) raised its forecast for global demand in 2016 to 96.1 million barrels a day, up 0.1 million barrels from its previous prediction.

On Tuesday, the IEA estimated that the oil market will balance out in 2016. WTI for July delivery added 0.56% at $48.06 per barrel compared with the last settlement.

The markets are awaiting the result of the Federal Reserve policy meeting later today for its estimate on the state of economic growth. The Fed is not expected to raise the interest rate at the current meeting due to increasing worries about Brexit, after The Sun – an influential newspaper in Britain – has called for the county’s citizens to vote for the “Leave Camp”. The concerns have curbed the gains of the SP500.

Fig. SP500 D1 Technical Chart

SP500 has been moving cautiously between the range of 2019.82 and 2120.00 since the middle of March, awaiting clues from the Fed policy meeting later today. The buying power seems stronger as seen with the RSI near level 48 and pointing up to the overbought zone. The trend indicator suggests long positions.

The price is expected to continue the current up-move, retesting the resistance level at 2120.00, the highest level of the year.

Trade suggestion
Buy Digital Call Option from 2080.75 to 2120.00 valid until June 17, 2016

 

[Option_Banque]

Gold Call Options The Road To Riches As Markets Panic Over Fed And Brexit

Gold hit the highest level in nearly two years since August 18, 2014 after the U.S. Federal Reserve sounded more dovish than expected at its latest policy meeting. Also, mounting worries that Britain could leave the European Union at the June 23rd referendum have made investors rushed to safe-haven assets like gold.

Spot gold added 1.4% to reach as high as $1309.70/oz, while US gold futures for August delivery were up $24.20 to $1312.50/oz, gaining 7% this month after dropping to the lowest level in more than 3 months on May 30th .

At the policy meeting, the Fed left interest rates unchanged, and stated that it is still planning to raise the interest rate twice this year. However, the central bank said that slower economic growth would curb the pace of the monetary policy in the future. According to HSBC, the longer the Fed delays a rate hike, the better the outlook for gold.

The Fed’s cautious view on another rate hike comes ahead of the referendum in Britain on its European Union membership. An exit by Britain from the EU, may push Europe back into recession, and exert further pressure on the global economy, as well as boost the appeal of safe-haven assets.

After the Fed’s statement and a press conference by the Fed Chair, the US dollar slipped against its rivals. In particular, the greenback was last trading at a two-week low versus the Euro at 1.11544. USDJPY was trading at 104.091, hovering near a 1-1/2 year bottom.

Holdings in SPDR Gold Trust, the world’s largest gold-backed exchange-traded fund, gained 0.23 percent to 900.75 tons on Wednesday, a record high since October 2013.

Fig. GOLD D1 Technical Chart

Gold has reached $1308.60/oz with support from the green trend indicator underpinning the price from below. The commodity is in the overbought zone with the RSI lingering above level 70. ADX is at 41, with the DI+ (green line) heading up, and far away from the DI- (red line), suggesting a strong bull. The bullish market is anticipated to last for a while.

Trade suggestion
Buy Digital Call Option from 1304.10 to 1315.07 valid until 20:00 June 16, 2016
Buy Digital Call Option from 1254.36 to 1318.32 valid until 20:00 June 16, 2016

 

[Option_Banque]

Time For EURUSD Put Options – EURUSD Plunges On Growth Fears After Brexit

The 28-nation European Union is on the verge of a dissociation after Britain’s EU referendum’s results on Friday came in with a shock vote for Britain to leave the EU. The Euro has been under downward pressure as Brexit has clouded the future of the European Union. The currency fell significantly from 1.14282 to as low as 1.09078, the lowest level since the middle of March on Friday, and has recovered slightly today as investors locked in their profits. However, in the long-term, a further plunge is inevitable as the market fears political and economic uncertainty regarding what happens next.

The Brexit could spark a domino effect across the rest of the continent, as forces of economic nationalism and anti-immigration politics have already been gaining ground. The EU has been forced to raise a firm call requesting the Britain to “leave as soon as possible” after right-wing parties in various countries including Netherlands and France have already called for similar referendums in those countries in an attempt to break away from the union.

For the Eurozone’s economy, this event can have significant negative consequences. Multinational businesses could refrain from making major investments in this uncertain economic environment. Without any contributions from its second largest economy, EU will now have to find alternative means to solve its own financial problems such as Greece’s bailout. Moreover, the labor market will also be placed under enormous stress as a large number of Britons are working and contributing towards local economies across the EU, and a large and significant number of people from the other 27 EU members are living and working within the UK. There is a rising belief that the ECB may take unconventional measures to inject cash into the economy and boost the market’s confidence.

US officials indicated their concerns that the Brexit could weaken US growth if the EU’s economy – the country’s largest trading partner, takes a hit from Britain’s decision. The demand for US exports will decline as consumer confidence decreases and the dollar strengthens. According to Janet Yellen’s testimony to Congress last week, the event could significantly affect financial conditions, pushing back the Fed’s plan to raise interest rates this year.

Investors are looking at central banks for their indications on possible measures to reduce market volatility, as well as support economic growth in the Eurozone. The European Central Bank is holding a three-day meeting in Sintra, Portugal, at which its president, Mario Draghi and Fed Chair Janet Yellen will deliberate and speak about global economic conditions and recent events.

https://www.optionbanque.com/wp-content/uploads/2016/06/EU1111-1024x500.png
Fig. EURUSD D1 Technical Chart

EURUSD opened Monday’s session with a weekend gap down at 1.10051. The price has pulled back slightly to around 1.10364 but is still under pressure from the two moving averages above. RSI is at 38 and pointing to the oversold zone, suggesting a strongly bearish market. The trend indicator is encouraging short positions as the red arrow has appeared above the price movement. The price is expected to cover the gap before retreating and testing the support level at 1.09078.

Trade suggestion
Buy Digital Put Option from 1.10426 to 1.09067 valid until 20:00 June 30, 2016

 

[Option_Banque]

Call Options Preferred On USDCHF Despite USD Dip

When it comes to events that trigger market volatility, investment often rushes into safe-haven assets. Swiss franc is one of the favorites at all such times.

However, the currency has been experiencing a hard time against the greenback due to investors’ fears over negative effects that Brexit could create for the Swiss economy due to the strong correlation between Switzerland and the 28-nation bloc.

Surrounded by members of the Eurozone, Switzerland has formed close political and economic ties with the EU through a free trade agreement which was signed in 1972, and more than 100 bilateral agreements which has not only turned the EU into Switzerland’s biggest trading partner but also allows the free movement of Swiss citizens/professionals within the EU.

Against the background of uncertainty on the future of Europe, the Swiss franc is about to close lower for the third consecutive trading day even after the markets have digested the shock-waves from Britain’s vote to leave the EU.

After witnessing a sharp advance for the last several days, the dollar index DXY is losing steam. The weakness in the greenback is partly due to weak data on economic growth reported lately. Data from the Census Bureau showed that total orders for durable goods in the US fell by 2.2% in May, well below the expectation of a 0.5% decline. After eliminating transportation, core durable goods orders posted a drop of 0.3% in the reported month, compared with the month before.

On June 28, the Bureau of Economic Analysis will publish the US Gross Domestic Product for the first quarter in 2016. The forecast is for an increase of 1% in comparison with the preceding period.

The USD is on track to surge higher against the swissie after failing to break through the level 0 of Fibonacci retracement. The pair currently is lingering near the 23.6% level of Fibonacci, with the %K line (blue line) approaching the overbought threshold as shown on the stochastics chart, indicating that bulls are dominating the market. The pair is expected to hit the 38.5% Fibonacci mark, thereafter resuming its down-move. Longs are encouraged in the short term.

Trade suggestion
Buy Digital Call Option from 0.98047 to 0.98433 until 20:00 June 28, 2016

 

[CapitalStreetFX]

Another 2015 Like Meltdown In Crude Oil Rising Supply Raises Concerns

Oil prices hovered at the lowest level in two months on Monday as investors worried that the global glut would weigh on markets.

According to data released by Baker Hughes on Friday, rigs drilling for oil in the U.S. rose by 14 to 371 – the longest run of weekly gains since August 2015. The steady growth in the number of active oil rigs dirilling for oil in the U.S. is spurring concerns of more shale output in the future. The rise was mostly supported by the recent price rally as prices went from around $25 a barrel in
February to the current level of 44.27.

The Energy Information Administration has stated that rigs have been put back to work in seven of the past eight weeks. U.S. crude production has halted its slide, and increased for a second week through July 15, raising more fears of a global glut in the market. Money managers added the most shorts in a year on falling West Texas Intermediate prices during the week ended July 19, according to Commodity Futures Trading Commission data.

Goldman Sachs reported last week that the Organization of Petroleum Exporting Countries (OPEC) boosted its production by 0.7% to 32.9 million barrels a day in June. Russian output will climb by 590,000 barrels a day over the next three years to exceed the former Soviet record.

According to an AFP report, Nigerian police have arrested a key militant responsible for attacks on oil infrastructure. This adds further potential of increasing supplies to the market, as supply disruptions around the world are likely to come to an end.

In addition to weekly oil inventories data from the U.S. energy department on Wednesday, investors this week will be keeping a close eye on two major central banks — the Bank of Japan and the U.S Federal Reserve for their decisions on interest rates and monetary policy, and their outlook on the economic prospects of their their respective countries.

Fig. WTI D1 Technical Chart

WTI has plunged continuously for a week under pressure from the two moving averages- both the long-term and short-term. RSI is hovering around level 38, and is anticipated to continue heading lower along with the price, to push the commodity into oversold territory. ADX is at 23.40, combined with –DI beginning to turn down, suggesting that the bearish trend has been getting weaker. The trend indicator is urging short positions. The support level of 42.51 is expected to be tested soon.

Trade suggestion
Buy Digital Put Options from 43.83 to 42.51 valid until 19:00 July 25, 2016

 

[Option_Banque]

Daily Report on September 06, 2016

Daily Report on September 06, 2016



Crude prices held onto most of their gains from yesterday in the Asian trading session on Tuesday, as top producers Russia and Saudi Arabia, despite failing to announce concrete steps to limit output, agreed to cooperate on stabilizing the oil market. Russian Energy Minister Alexander Novak and his Saudi counterpart have moved toward a strategic energy partnership after a meeting at the G-20 summit in China.

Saudi energy minister Khalid al-Falih stated that he was optimistic about cooperation with other producers ahead of a meeting this month in Algiers, adding that freezing production was not the only solution to a supply glut. The oil price advance led energy stocks higher, which in turn supported Asian shares edge up on Tuesday.

A report by the British Retail Consortium (BRC) and KPMG published overnight showed that UK retail sales decreased 0.9pc in August compared to the same month last year on a like-for-like basis. The weakest performance since September 2014 was attributed to the warm weather that retrained clothing sales, and the Olympics that distracted shoppers by keeping them indoors.

Having already pulled the trigger on policy easing in May and August, the Reserve Bank of Australia (RBA) held its interest rate unchanged as expected at Tuesday's meeting. The central bank stated that it will let the stimulus measures already introduced, to percolate through the economy before deciding if yet more stimulus is needed.



Technicals

EURAUD



Fig: EURAUD H4 Technical Chart

EURAUD has fallen off the 23.6% retracement level at 1.46967 and continues to head downwards with the pressure from the two MAs placed above the price action. The MA20 has crossed over the MA50 from above, not to mention that the ADX index has soared higher. The pair is anticipated to dip lower to test the support at 1.45450.

Trade suggestion

Buy Digital Put Option from 1.46015 to 1.45450 valid until 20:00 GMT September 06, 2016



USDCAD



Fig: USDCAD H4 Technical Chart

USDCAD has been on a decline since it reversed from a nearly one-month high at 1.31471 reached on Friday. The short-term MA has penetrated the long-term MA from above, signaling further slump in the market. Additionally, since the ADX has surged higher to 53.19, with a big divergence between the +DI and –DI line, the bears are expected to gain momentum and push the pair lower. However, the USDCAD is up against a strong support zone, which is an ascending trendline formed during the period from August 18 to date. To extend the down move, USDCAD needs to make a breakout through this support first.

Trade suggestion

Buy Digital Put Option from 1.29000 to 1.28570 valid until 20:00 GMT September 06, 2016



USDCHF



Fig: USDCHF H4 Technical Chart

USDCHF has been moving sideways around the key 0.98000 level for the last three trading days. The pair initially breached the upper boundary of the ascending trading channel and broke out of it. But has now fallen back into the trading channel. The market has been locked under the MA20 for a while but has not been able to cross below the MA50. As the %K line is pointing down and the RSI has dipped below 50, the pair is forecast to fall further to the support at 0.97500.

Trade suggestion

Buy Digital Put Option from 0.97880 to 0.97500 valid until 20:00 GMT September 06, 2016



GOLD



Fig: GOLD H4 Technical Chart

Gold has been on a rise since the beginning of September but the rally is being held back within the descending channel. While the bull is overwhelming in the market and the upcoming convergence of the two MAs placed below the price action looks likely, a breakout though the channel resistance is anticipated. However, in case the precious metal can breach this handle, the major resistance at 1330.00 will be another solid stance for gold to get through.

Trade suggestion

Buy Digital Call Option from 1328.50 to 1333.20 valid until 20:00 GMT September 06, 2016



BRENT



Fig: Brent H1 Technical Chart

Brent witnessed a spike yesterday which took the commodity beyond the 23.6% retracement level to retest a nearly one-week high at 49.37. Brent pared most of its gains afterwards but failed to break below the MA20 and is currently trading above this support. The ongoing up-wave has created a bullish impulse in the market, with other indicators currently supporting the up move.

Trade suggestion

Buy Digital Call Option from 47.80 to 48.45 valid until 20:00 GMT September 06, 2016



DAX



Fig: DAX H4 Technical Chart

Germany's DAX30 index has been moving in an ascending triangle pattern. Higher lows have been continuously created but the index has been restrained from forming new highs due to the resistance at 10740.00. DAX seems to be trading with a sideways to downwards bias currently. However, any down move is expected to subside and the market may bounce back once it hits the MA20 and may go on to retest the 10740.00 resistance level.

Trade suggestion

Buy Digital Call Option from 10715.00 to 10740.00 valid until 20:00 GMT September 06, 2016

 

[Option_Banque]

Dow Jones Trading Signal On September 06, 2016

Buy Digital Call Option from 18508.00 to 18527.00 valid until 21:00 GMT September 06, 2016

 

[Option_Banque]

EURUSD Signal by Option Banque

Call Options On EURUSD As Fed May Need To Stand Pat On Rates This September

EURUSD retested over one-week high at 1.12553 after a couple of data released on Tuesday that were not only far beyond earlier expectations but also completely dislodged any thought of a U.S economy that is “healthy enough” to withstand a rate hike as soon as later this month.

Report from the Institute for Supply Management showed that America’s service industries expanded in August at the weakest pace in six years. The ISM non-manufacturing index nose-dived to the lowest since February 2010 to 51.4, from 55.5 in July, while economists forecast the figure to come out at 55.4.
In a separate report, the Federal Reserve’s labor-market conditions index also swung back into negative territory last month after a positive reading in July, marking the seventh negative reading in the past eight months. The Fed’s gauge, which combines 19 labor market indicators, fell to minus 0.7 in August from 1.3 in one month earlier.

Trade suggestion
Buy Digital Call Option from 1.12400 to 1.12550 valid until 20:00 GMT September 06, 2016