Daily Market Updates & Trading Signals By Option Banque

[Option_Banque]

AUDUSD Market Outlook by Option Banque

Aussie Fuelled By Unchanged Rates – Technical Setup Strong Bullish

The Australian Dollar flew higher against the USD, extending its run of gains to five trading days in a row after the Reserve Bank of Australia stood pat on interest rates. Given two previous rate cuts in May and August, the decision by the RBA came as no surprise as the central bank indicated a desire to wait for upcoming data to assess the effectiveness of stimulus measures deployed recently, and the next move by the U.S Federal Reserve later this month.

RBA Governor Glenn Stevens decided to leave the cash rate unchanged at 1.5 percent in his last meeting as RBA governor, stating that “recent data suggest that overall growth is continuing”. The country has witnessed improvements in resource exports, housing construction, tourism and education that have been powered by a local currency that is no longer perched at the peaks of the mining-boom period. Growth in these areas has helped offset a large decline in business investment, but failed to lift subdued labor costs and exceptionally low inflation.

Meanwhile, aggressive policy easing in other parts of the world such as Europe and Japan which are experiencing the impact of zero or negative rates has contributed to about 11 percent appreciation in the Aussie since a mid-January trough. This would “complicate” factors mentioned above which are assisting the economy. Thus, the RBA will pay close attention to the actions of the Federal Reserve, and may be expecting the Fed to lend it a helping hand by raising U.S rates this year, which could help push the AUD lower to levels considered more desirable by the RBA.
The Australian Bureau of Statistics is due to report on gross domestic product (GDP) for the second quarter on Wednesday. The data is expected to indicate a cooling off in growth during the April-June period. Economist forecasts range from 0.5% to 0.6% growth on a quarter-on-quarter basis, compared to the first quarter’s 1.1% increase – which was also the highest level of growth in three years.

The U.S markets will resume trading today after the Labor Day holiday. A solid but not impressive non-farm payrolls report published on Friday may restrain the central bank from unleashing a rate hike at its September policy meeting. Nonetheless, an interest rate increase in December is still on the table as a steady labor market nearing full-employment, is encouraging domestic demand and household spending – the sector that accounts for two-thirds of the U.S economy.

The US ISM Non-Manufacturing PMI for August will be out later today and is forecast to point to a solid expansion in the services sector with little change compared to one month earlier.

Fig: AUDUSD H4 Technical Chart

AUDUSD successfully broke higher through both the descending trading channel and the 23.6% retracement level at 0.76147. The path for further advances is quite clear. Although the RSI index is about to enter the overbought territory, the pair is expected to surge higher as bulls are overshadowing the market. As can be seen from the ADX chart, the +DI is diverging from the –DI, which has taken the index to the level of 35.7980. The MA20 has converged with the MA50 from below. AUDUSD can be expected to retest the resistance at 0.76900

Trade suggestion
Buy Digital Call Option from 0.76500 to 0.76800 valid until 20:00 GMT September 07, 2016

 

[Option_Banque]

Daily Report on September 07, 2016 by Option Banque

Daily Report on September 07, 2016



Asian shares rose to one-year highs on Wednesday, carrying forward the bullish momentum from the US equity markets after Wall Street had finished yesterday’s session in the green. A spate of weaker-than-anticipated data released on Tuesday has nudged investors to bet against any U.S rate hike this month and created some doubts over an interest rate increase by the end of 2016.

The Federal Reserve was handed some reasons to delay increasing rates after the Institute for Supply Management published its non-manufacturing PMI for August. The August PMI fell to 51.4. The result was far short of expectations, marking the largest one-month drop since November 2008 and the lowest PMI reading since February 2010. The Fed’s labor-market conditions index also swung back into negative territory last month after a positive reading in July, slipping to -0.7 from 1.3 one month earlier.

In response, the U.S dollar fell sharply against most of its peers. The Japanese Yen strengthened on the back of a softening greenback and was also bolstered further by a reported split between Bank of Japan officials ahead of the BOJ meeting on September 20-21. According to a report in the Sankei newspaper, BOJ policymakers are currently divided into three groups. One supports negative interest rates, another advocates more government bond purchases, while the third group opposes further stimulus.

The Australian dollar edged down 0.1 percent to $0.7681 after rising more than 1 percent on Tuesday after the Reserve Bank of Australia held interest rates steady at 1.5 percent. The Australian Bureau of Statistics reported the country’s gross domestic product (GDP) for the second quarter decelerated to 0.5%, indicating a cooling off in growth compared to the January-March period.



Technicals

GBPUSD

Fig: GBPUSD H4 Technical Chart

GBPUSD broke above the ascending trading channel that has formed since early August, after a steep up move from the key support level at 1.33000. The market has pulled back for some consolidation after bulls pushed the prices into overbought territory. However the upper boundary of the trading recent trading channel is now acting as support after the breakout from the channel, and has kept the market from falling back into the price range. This support zone is expected to push the price higher from the current levels

Trade suggestion

Buy Digital Call Option from 1.34400 to 1.34800 valid until 20:00 GMT September 07, 2016



EURCHF

Fig: EURCHF H4 Technical Chart

EURCHF has breached below the 50.0% retracement at 1.09090 after decisively dropping from the 61.8% level at 1.09774. A brief correction was seen yesterday but weak bulls failed to retain the bullish momentum and had to reverse lower after coming up against the short-term MA. The MA20 has just converged with the MA50 from above, signaling more declines for the pair.

Trade suggestion

Buy Digital Put Option from 1.09000 to 1.08800 valid until 20:00 GMT September 07, 2016



USDJPY

Fig: USDJPY H4 Technical Chart

USDJPY has been on a precipitous down move which helped the pair easily move past both the long-term and short-term MAs. In general, the U.S dollar has been trading in a shrinking range against the JPY and is currently moving towards the lower boundary of the trading range. As the market has entered the oversold zone, we may witness a period of consolidation moves. More declines in USDJPY are expected since two MAs placed above the price action are casting downward pressure on the price.

Trade suggestion

Buy Digital Put Option from 101.300 to 100.850 valid until 20:00 GMT September 07, 2016



SILVER

Fig: SILVER H4 Technical Chart

Having surged more than 9.5 percent from two-month lows at 18.371 created on August 29, the grey metal retreated after the market entered a state of overblown volatility. Nonetheless, silver is forecast to extend the up wave as the two moving averages placed below the price action are exerting upward pressure which could send the price higher.

Trade suggestion

Buy Digital Call Option from 20.100 to 20.300 valid until 20:00 GMT September 07, 2016



WTI

Fig: WTI H4 Technical Chart

WTI crude prices are continuously forming lower highs and higher lows causing the commodity to move in a narrowing range. The market has failed to define a clear direction for itself and reversed regularly every time it hits the upper or lower trend lines that have marked the recent trading range, and no clear breakout or resolution of the trend has been observed. At the moment, crude prices are moving towards the 23.6% retracement at 45.55 and anticipated to reverse lower below this resistance.

Trade suggestion

Buy Digital Put Option from 45.55 to 44.50 valid until 20:00 GMT September 07, 2016



SP500

Fig: SP500 H4 Technical Chart

The SP500 has recorded a crossover by the MA20 through the MA50 from below, suggesting further up moves on the index after the price action broke above the 2184.00 resistance. RSI (14) that has soared to 59.74 is also supportive for the prices to retest the recent high at 2193.00 reached on August 15.

Trade suggestion

Buy Digital Call Option from 2186.00 to 2193.00 valid until 20:00 GMT September 07, 2016

 

[Option_Banque]

Gold Market Outlook by Option Banque

Gold Traders Accumulating Call Options To Celebrate Upcoming Demand Season

Gold was almost flat in the European session on Wednesday after surging nearly 1.8% on Tuesday and 3.6% month-to-date, largely due to a softening U.S dollar. In addition to a string of disappointing U.S data that diminished the likelihood of a U.S. interest-rate hike this month, rising demand for physical gold for the upcoming festival and wedding season in Asian countries, especially India and China, is another factor that pushed prices of the yellow metal higher.

Coming on the heels of last week’s anemic ISM Manufacturing PMI that fell into contraction for the first time since February 2016 and a weaker than expected non-farm payrolls, yesterday’s ISM Non-Manufacturing PMI, despite remaining above 50 which indicates an expansion, posted the lowest PMI reading since February 2010 at 51.4.

The speculation over a rate hike as soon as September has been fueled recently by Fed officials who stated that any move towards higher rates would be based on economic data. That is the reason why each data release draws so much attention from the markets currently. According to CME Group data, the likelihood of the Fed raising rates this month were priced in at only 15%, after yesterday’s data releases. The probability for a December rate hike also dipped to around 47%.

In the first half of this year, gold demand has been shifting from jewelry demand to investment demand, due to aggressive monetary policy being deployed in most parts of the world that have reinforced the attractiveness of a no-yield asset like gold. Private investors of BullionVault, the largest gold and silver market online, increased their net gold purchases to almost half-a-ton of bullion last month, the heaviest net addition in nearly four years.

However, the booming demand scenario could change in the last four months of 2016 as Eastern festivals and a busy wedding season is around the corner. Sales in India – the world’s second-biggest gold consumer – began picking up in early September for the Ganesh Chaturthi festival, which fell on September 5th this year. Discounts in India have narrowed to the smallest in three months at around $16 an ounce over official domestic prices, down from $25 last week and $52 in the week before.

Demand for gold jewelry is expected to strengthen further in the final quarter as India gears up for festivals such as Dussehra (starting on October 11) and Diwali (starting on October 30) as well as for the winter wedding season, when people celebrate with gifts of gold.

In China and some other Asean countries such as Singapore and Vietnam, consumers are making purchases ahead of the mid-Autumn festival. Premiums in top consumer China were almost unchanged at $3 and $4 an ounce versus $3 last week, while premiums in Singapore also remained flat from last week at about 60-70 cents an ounce to the spot benchmark.

Fig: GOLD D1 Technical Chart

Gold has been paring almost of its losses from the last two weeks of August and is moving upwards towards a possible test of the resistance at 1355.00. The metal has crossed over both the 20-day and 50-day moving averages, signaling a reversal into an uptrend. However, the pace of gains is expected to slow down today after gaining in price and bullish momentum for 4 days in a row. The level at 1355.00 is forecast to be a solid handle in the near term for gold before it is able to attempt any higher targets.

Trade suggestion

Buy Digital Call Option from 1350.00 to 1355.00 valid until 20:00 GMT September 07, 2016

 

[Option_Banque]

AUDNZD Trading Signal On September 07, 2016 by Option Banque

AUDNZD Trading Signal On September 07, 2016

Buy Digital Put Option from 1.03090 to 1.02660 valid until 21:00 GMT September 07, 2016

 

[Option_Banque]

USDCAD trade idea by Option Banque

USDCAD Pares Losses After Weak Ivey PMI Data

USDCAD reversed into an uptrend after the Bank of Canada decided to maintain the Overnight Rate on hold at 0.50% but stated that second-quarter gross domestic product was affected by a drop in exports that was “larger and more broad-based than expected.”

Although in general, the central bank delivered an optimistic attitude towards its economy, analysts claimed that weak exports would demand the BOC unleash more monetary easing to drive stronger growth.

The Loonie today was also hit by the Canadian Ivey PMI. The indicator released by the Richard Ivey School of Business, decreased from 57.0 points to 52.3 points, missing consensus estimate of 55.5 and signaling an aggressively decelerated expansion.

Trade suggestion

Buy Digital Call Option from 1.29000 to 1.29200 valid until 21:00 GMT September 07, 2016

 

[Option_Banque]

Daily Report on September 08, 2016 by Option Banque

Daily Report on September 08, 2016



Crude prices extended their winning streak in early trading on Thursday after data from the American Petroleum Institute on Wednesday indicated that U.S crude stocks unexpectedly dropped by 12.1 million barrels last week. Oil hit one-week highs as the report was starkly contrasting with expectations of an increase of 200,000 barrels. Official data from the U.S government will be out later today. Should the data from the EIA confirm the drawdown, it will be the largest weekly decline since April 1985.

Also on Wednesday, the U.S Labor Department published its monthly Job Openings and Labor Turnover Survey, or JOLTS, which pointed to tightening conditions in the labour market. U.S. job openings were reported to have surged to a record high in July. However, employers were having difficulty in filling vacancies with appropriately qualified workers.

The number for worker demand increased by 228,000 to a seasonally adjusted 5.9 million – the highest level since the survey was started. In theory, this situation could spur faster wage growth. But according to the Fed’s latest Beige Book report, “expectations of wage growth for the coming months were modest” as a strong labor market failed to create much upward pressure on wages and prices.

Data from Japan reported on Thursday that the Japanese economy grew by 0.7% in the second quarter compared with the same quarter last year. The reading for the annualized growth rate was revised upwards, from a preliminary reading of a 0.2% expansion. On a quarter-on-quarter basis, the world’s third biggest economy expanded by 0.2%, largely due to upbeat capital expenditure and inventories, which outpaced the decline in domestic and overseas demand caused by a strong yen.

Official data from the Customs General Administration of China reported that the country’s trade surplus in August was slightly below July’s $52.31 billion at $52.05 billion and missed estimates for a reading of $58 billion. Weakening exports continued to weigh on the world’s second-largest economy. Exports slid by 2.8 percent on a year-on-year basis, following July's 4.4 percent drop.

Investors are shifting their attention to the meeting of the European Central Bank where all main rates are expected to be left unchanged. President Mario Draghi will update growth and inflation projections in the Press Conference due after the rate decision.



Technicals

NZDUSD



Fig: NZDUSD H4 Technical Chart

NZDUSD has broken above the ascending channel but has currently been trading sideways below the 50.0% retracement at 0.74709. The pair is currently locked between the upwards sloping trendline, marking the boundary of the ascending channel, which is acting as a support and the resistance at the 50.0% Fibonacci level. A breakout is expected as the trading range is becoming narrower. The ADX is still pointing upwards, suggesting a continual uptrend.

Trade suggestion

Buy Digital Call Option from 0.74750 to 0.75200 valid until 20:00 GMT September 08, 2016



CADJPY



Fig: CADJPY H4 Technical Chart

CADJPY has been moving sideways within the price range from 78.750 to 79.175. The pair is currently in a phase of consolidation, after a sharp decline from a more than one month high at 80.298. The pair is under the downward pressure heaped by the two MAs placed above the price action. The short term MA20 has been an especially strong level of resistance so far, and has forced the price to reverse lower every time CADJPY has hit this resistance. Further declines are expected.

Trade suggestion

Buy Digital Put Option from 78.750 to 78.500 valid until 20:00 GMT September 08, 2016



USDCAD



Fig: USDCAD H4 Technical Chart

USDCAD retreated after failing to break back above the support trendline underlying the price action created since August 18. After having violated the uptrend on Monday, the pair bounced back from the support at 1.28300 but could not cross back over the support trendline at around 1.29126, and was further pressured by the MA20 hovering above the price action. The market has remained in bearish territory but the near-term support at 1.28570 should be monitored carefully.

Trade suggestion

Buy Digital Put Option from 1.28570 to 1.28300 valid until 20:00 GMT September 08, 2016



SILVER



Fig: SILVER H4 Technical Chart

Silver resumed the uptrend after retreating from the high at 20.100. While the %K line reversed higher to penetrate the %D line from below, RSI remains in the bullish zone, indicating an overwhelming bull. With two MAs placed below the price action, silver is on course to soar higher.

Trade suggestion

Buy Digital Call Option from 19.900 to 20.100 valid until 20:00 GMT September 08, 2016



COPPER



Fig: Copper H4 Technical Chart

Copper has breached the solid resistance at 2.0900 which restrained the metal for two weeks until yesterday. The RSI index has surged above the 50 line, and the MA20 has crossed over the long-term MA50 from below, preparing the stage for further advances in copper. Nonetheless, the up-move could be limited as prices are moving in an upward sloping channel and the upper boundary of the channel is foreseen to be a firm handle, where prices could be contained.

Trade suggestion

Buy Digital Call Option from 2.1050 to 2.1170 valid until 20:00 GMT September 08, 2016



NASDAQ



Fig: NASDAQ100 H4 Technical Chart

The Nasdaq failed to surpass major resistance at 4837.00, yet again, yesterday. Bulls are overshadowing the market but also taking cautious steps when facing this key level. The two MAs placed below the price action, are continuously fueling bullish momentum in the index but a chance for a break out is still even. Any considerable force that could help the index one way or the other, would need to come from the fundamental side. Therefore traders should be patient ahead of the crude oil inventory data due later today.

Trade suggestion

Buy Digital Put Option from 4837.00 to 4811.50 valid until 20:00 GMT September 08, 2016

 

[Option_Banque]

WTI Market Outlook by Option Banque

EIA Data In Focus After API Reports Huge Fall In Crude Oil Stocks – Crude Oil Expected to Extend Gains

Oil prices are on course to register another up day for a fourth day out of the last five trading days, pulled up by reports from both the demand and supply sides. While China is taking advantage of depressed foreign crude prices, a steep fall in U.S oil stocks once again fuelled speculation over a tightening crude market which has been a hot topic since talks of an output freeze deal were revived recently.

Data released on Thursday by the General Administration of Customs reported that China’s oil imports rose to 32.85 million tons in August, which is equivalent to 7.8 million barrels a day. The world’s No. 2 oil consumer imported the greatest amount of crude oil since December 2015, and witnessed an increase of 7% from the same month a year ago. Oil imports to China have been high all year due in part to Beijing’s policy of filling up on its strategic oil reserves but also because of strong buying from refiners who cannot resist the appeal of low priced crude.

Independent refineries, known as “teapots”, account for about a fifth of China’s refining capacity and have been gaining market share since Beijing granted them crude import licenses. According to market sources, “A lot of the teapot refiners that were under maintenance are coming back into operation, and a lot of the state-owned refiners are returning to normal levels of operation”.

After two weeks of rising crude stocks in inventory, data from the U.S. Energy Information Administration due during the U.S. trading session today, is expected to confirm a decline in U.S inventories, as reported by data from the American Petroleum Institute on Wednesday. The industry group indicated that U.S crude stocks dropped by 12.1 million barrels last week, which is starkly contrasting with expectations of an increase of 200,000 barrels. Should the data from the EIA confirm the drawdown, it will be the largest weekly decline since April 1985.

Yesterday, the Canadian Association of Oilwell Drilling Contractors updated its drilling activity forecast for the fourth quarter of this year. The latest report shows a 25% drop in new oil and gas wells drilled so far this year, compared to its original forecast in November 2015. The report stressed that “2016 will be the worst year in our recorded drilling activity history.” The CAODC revised its estimates for the number of wells drilled this year down to 3,562 – from 4,728 wells in initial forecast, citing languishing commodity prices.

Fig: WTI D1 technical chart

WTI crude resumed its rally after a slide in the mid-late August period, that sent the price back below the 23.6% Fibonacci retracement level. The current up-wave has taken crude prices past this level and at the same time, the price action has crossed over the two MAs, confirming the upward reversal. The wide distance between the %K line and %D line in the stochastic chart is powering buyers, suggesting further advances.

Trade suggestion

Buy Digital Call Option from 46.30 to 47.30 valid until 20:00 GMT September 08, 2016

 

[Option_Banque]

EURCHF Trading Signal On September 08, 2016 by Option Banque

EURCHF Trading Signal On September 08, 2016

Buy Digital Put Option from 1.09450 to 1.09315 valid until 21:00 GMT September 08, 2016

 

[Option_Banque]

WTI Market Outlook by Option Banque

EIA Data In Focus After API Reports Huge Fall In Crude Oil Stocks – Crude Oil Expected To Extend Gains

Oil prices are on course to register another up day for a fourth day out of the last five trading days, pulled up by reports from both the demand and supply sides. While China is taking advantage of depressed foreign crude prices, a steep fall in U.S oil stocks once again fuelled speculation over a tightening crude market which has been a hot topic since talks of an output freeze deal were revived recently.

Data released on Thursday by the General Administration of Customs reported that China’s oil imports rose to 32.85 million tons in August, which is equivalent to 7.8 million barrels a day. The world’s No. 2 oil consumer imported the greatest amount of crude oil since December 2015, and witnessed an increase of 7% from the same month a year ago. Oil imports to China have been high all year due in part to Beijing’s policy of filling up on its strategic oil reserves but also because of strong buying from refiners who cannot resist the appeal of low priced crude.
Independent refineries, known as “teapots”, account for about a fifth of China’s refining capacity and have been gaining market share since Beijing granted them crude import licenses. According to market sources, “A lot of the teapot refiners that were under maintenance are coming back into operation, and a lot of the state-owned refiners are returning to normal levels of operation”.

After two weeks of rising crude stocks in inventory, data from the U.S. Energy Information Administration due during the U.S. trading session today, is expected to confirm a decline in U.S inventories, as reported by data from the American Petroleum Institute on Wednesday. The industry group indicated that U.S crude stocks dropped by 12.1 million barrels last week, which is starkly contrasting with expectations of an increase of 200,000 barrels. Should the data from the EIA confirm the drawdown, it will be the largest weekly decline since April 1985.

Yesterday, the Canadian Association of Oilwell Drilling Contractors updated its drilling activity forecast for the fourth quarter of this year. The latest report shows a 25% drop in new oil and gas wells drilled so far this year, compared to its original forecast in November 2015. The report stressed that “2016 will be the worst year in our recorded drilling activity history.” The CAODC revised its estimates for the number of wells drilled this year down to 3,562 – from 4,728 wells in initial forecast, citing languishing commodity prices.

Fig: WTI D1 technical chart

WTI crude resumed its rally after a slide in the mid-late August period, that sent the price back below the 23.6% Fibonacci retracement level. The current up-wave has taken crude prices past this level and at the same time, the price action has crossed over the two MAs, confirming the upward reversal. The wide distance between the %K line and %D line in the stochastic chart is powering buyers, suggesting further advances.

Trade suggestion
Buy Digital Call Option from 46.30 to 47.30 valid until 20:00 GMT September 08, 2016

 

[Option_Banque]

Daily Report on September 09, 2016 by Option Banque

Daily Report on September 09, 2016



The European Central Bank decided to leave interest rates unchanged on Thursday as expected but disappointed the markets with a lack of dovish statements on the Euro. With no immediate action to extend/expand the current asset purchase plan, and no explicit guidance about the central bank’s next moves, the markets were left hanging dry by the ECB. Speaking at the press conference after the rate decision, ECB President Mario Draghi stated that the bank was studying potential changes to its asset-buying program, but maintained the March 2017 end-date for the plan.

Crude prices pulled back on Friday as investors booked profits after prices rallied more than 4 percent a day earlier. U.S. Energy Information Administration confirmed a surprisingly huge draw-down in U.S. crude inventories, which had been reported first on Wednesday by the API. Government data showed that U.S. crude stocks dropped by 14.5 million barrels last week to 511.4 million barrels - the biggest weekly drop in stockpiles since January 1999.

This loss was driven by limited imports and shipping activity in the U.S. Gulf Coast owing to Tropical Storm Hermine last week. Higher oil prices powered the U.S dollar’s rally overnight, by raising U.S. inflation expectations, which led some investors to speculate that the Federal Reserve could hike interest rates sooner rather than later despite a recent spate of disappointing economic data.

Reports by China’s National Bureau of Statistics indicated that the country's consumer price inflation slowed to its weakest pace in almost a year in August. Food costs continued to abate despite unreliable agricultural production due to severe summer flooding. The consumer price index (CPI) growth posted the slowest pace of price inflation since October 2015. CPI growth was at 1.3 percent in August on a year-on-year basis, compared with a 1.8 percent increase in July. The producer price index (PPI) dropped 0.8 percent in August compared to a year earlier, virtually in line with expectations for a fall of 0.9 percent.



Technicals

EURGBP



Fig: EURGBP H4 Technical Chart

EURGBP has been on a sharp rise without a single bearish candle since it broke above the 50.0% retracement level at 1.09090. However, the aggressive and sharp up moves may have exhausted the bulls and slowed down the pace of the up-wave, which is showing up in the short bodies of the last two bullish candles (not including the current one). The pair may continue to surge higher, as the MA20 has converged with the MA50, and both are placed below the price action, thus powering the bullish momentum in EURGBP.

Trade suggestion

Buy Digital Call Option from 1.09600 to 1.09770 valid until 20:00 GMT September 09, 2016



GBPAUD



Fig: GBPAUD H4 Technical Chart

GBPAUD crawled back from the low at 1.72600 but has been hesitant around the 1.74150 level as the pair is facing a stiff zone of resistance at the trendline marking the descending downtrend created since May 26. A pullback is expected as there is no support for further advances, with the two MAs placed above the price action. Furthermore, the %K line of the stochastics has entered the overbought zone, indicating the possibility of upcoming profit-taking.

Trade suggestion

Buy Digital Put Option from 1.72600 to 1.72600 valid until 20:00 GMT September 09, 2016



AUDUSD



Fig: AUDUSD H4 Technical Chart

AUDUSD has entered a consolidation phase after nose-diving and moving past the 20-period moving average yesterday. The MA is now acting as a resistance and forcing the price to go down further after each attempt to gain back territory. The RSI has fallen from the overbought threshold to the neutral 50 level. AUDUSD is anticipated to retest the 23.6% retracement level at 0.76144.

Trade suggestion

Buy Digital Put Option from 0.76430 to 0.76144 valid until 20:00 GMT September 09, 2016



GOLD



Fig: GOLD H1 Technical Chart

Gold has been trading with a sideways to upwards bias since yesterday following a steep decline which depressed the precious metal below both the two moving averages. The MA20 has penetrated the MA50 from above is casting downward pressure on current up moves. Both MA's are currently placed above the price action. While the RSI is in bearish territory, the %K line has reversed lower and crossed the %D line from above. The metal is expected to pull back lower after attempting a test of the MA20 just above the price action.

Trade suggestion

Buy Digital Put Option from 1335.90 to 1330.00 valid until 20:00 GMT September 09, 2016



Natural gas



Fig: Natural gas H4 Technical Chart

Having surged sharply from the 23.6% retracement level, at 2.667, Natural gas’s up moves have slowed down. The two MAs placed below the price action are supporting further advances, but prices rising too far too fast have led the market into an overbought zone. The resistance from the upward sloping trendline through recent lows from early August to date is offering a strong road block to further gains currently. Natural gas is expected to reverse lower.

Trade suggestion

Buy Digital Put Option from 2.800 to 2.770 valid until 20:00 GMT September 09, 2016



SP500



Fig: SP500 H4 Technical Chart

SP500 has been restricted below the MA20 recently, even though the index is moving in an upward trending price channel, with higher highs and higher lows since early August. The price is nearing the lower boundary of the channel and is forecast to fall out of the range as bulls seem to be losing steam, with the RSI index pointing downwards and remaining below the 50 line. Prices have broken below both the MA's from above and bounce-backs have not been able to cross back above the MA's thus far.

Trade suggestion

Buy Digital Put Option from 2177.50 to 2172.40 valid until 20:00 GMT September 09, 2016

 

[Option_Banque]

Dow Jones Trading Signal On September 09, 2016 by Option Banque

Dow Jones Trading Signal On September 09, 2016

Buy Digital Put Option from 18420.00 to 18400.00 valid until 21:00 GMT September 09, 2016

 

[Option_Banque]

GBPUSD Market Outlook by Option Banque

Sterling On A Slide After Strong Start Sideways Bias To Reign Until Market Close


GBPUSD was trading flat on Friday, and looked set to close the week not far from the opening price. The pair had a great beginning to the week, but failed to hold on to its strength. The British Pound has pared most of its gains against the U.S dollar and is trading cautiously around the key level at 1.32900 following data showing that the U.K construction sector stagnated in July.

Figures from the Office for National Statistics published on Friday indicated that the country’s construction output in July remained unchanged from June, while economists had expected a decline of 1.0% on a month-on-month basis after contractions in the past two months. A 1% fall in house building activity was offset by a 3.9% rise in infrastructure activity which was bolstered by £1.5 billion of new infrastructure projects. Compared to one year ago, the industry slowed down by 1.5%.

Most of the data released recently are considered to be providing a broad-based outlook for the economy for a full month after the Brexit vote. The data readings have mostly been above expectations barring Wednesday’s manufacturing output data. The U.K economy seems to be holding up better than expected, but British firms are likely to cut investment during the rest of this year and in 2017 due to Brexit related unertainty, the Institute of Chartered Accountants in England and Wales said.

The ICAEW predicted that business investment would fall by 2.9 percent in 2016 and a further 3.7 percent in 2017, reversing a 5 percent rise in 2015, as companies are responding to June's referendum with more caution.

While new finance minister Philip Hammond is likely to give his first budget statement in November, Prime Minister Theresa May is preparing to begin negotiations with European Union leaders over the terms of the U.K.’s exit from the trading bloc.

The ICAEW also lowered its economic growth forecast to 1.1 percent in 2017, down from 1.8 percent this year, and updated its unemployment rate predictions to 5.3 percent from 5.1 percent in 2016. Wage growth is expected to edge up to 1.7 percent, helped by the introduction of a new higher minimum wage.

The dollar seems to be losing some momentum against most of its peers after a sharp rally on Thursday which was driven by a rebound in oil prices.

Investors are shifting their focus now to the meeting of the U.S Federal Reserve later this month. Despite a chorus of Fed officials including President Janet Yellen and her top Deputy Stanley Fisher signaling that the time to hike rates is approaching as the economy is at or near the full-employment level, investors have trimmed bets that the Fed would be raising rates as early as this month, especially after recent data echoing the disappointment of a smaller-than-expected NFP last Friday.

GBPUSD is trading sideways above the support at 1.32900 and has been stuck between the two moving averages. While the MA20 is placed above the price action and pushing the price downwards, the MA50 is placed below the price action and supporting the market to head higher. In the last session before the weekend, sideways trading is expected to continue going into the weekly close, if there is no major shock from the fundamental side.

Trade suggestion

Buy Digital Put Option from 1.33140 to 1.32900 valid until 20:00 GMT September 09, 2016

 

[Option_Banque]

S&P500 Trade Idea by Option Banque

U.S Stocks Nose-Dive, Weighed By Fears Of Rate Increase And Tumbling Crude Prices

Sp500 index has witnessed the biggest losing session on Friday since June 27 when the benchmark dropped more than 1%. Investors were rattled by hawkish comments by Federal Reserve officials that backed a U.S. interest rate hike while a slump in crude prices dragged down energy sector.

Boston Fed President Eric Rosengren, who is a voting member of the Fed’s policy committee and therefore will have a vote in the Fed’s decision, stated on Friday that “based on data that we have received to date…a reasonable case can be made for continuing to pursue a gradual normalization of monetary policy”.

None of 10 S&P500 sectors traded in the green. Two worst performers are utilities and telecoms that were both down around 3%. Energy shares, dropped 2.1 percent, due to more than 3% decline in crude prices.

Trade suggestion
Buy Digital Call Option from 2120.00 to 2125.30 valid until 21:00 GMT September 09, 2016

 

[Option_Banque]

Fed Speak Causes Friday SellOff, BOE Under Spotlight In Coming Week


Fed Speak Causes Friday SellOff, BOE Under Spotlight In Coming Week

The past week, especially Friday, was good for the U.S dollar on the one hand, but on the other hand, turned out to be a nightmare for the equity and bond markets. While the greenback advanced against most of its peers, fueling the dollar index to a higher close, settling at 95.38, up 0.38% on the day. European and U.S stocks however, posted their biggest daily losses since the Brexit selloff.

The Dow Jones fell 2.1%, to 18085.45, S&P 500 declined 2.45% to 2127.81, and Nasdaq Composite lost 2.54% to close at 5215.91, after European shares finished the week lower. The U.K.’s FTSE 100 was down 1.19% over the week, while the French CAC index and the German DAX ended the Friday session around 1% lower.

Revived speculation over a U.S interest rate increase as soon as this month helped boost the dollar and created fears of a trend towards tightening monetary policy that would negatively impact investors holding shares in general and shares of dividend payers like utilities and telecommunications companies, as the opportunity cost of holding shares increases.

Among comments made by Fed officials on Friday, statements by Boston Fed President Eric Rosengren, heightened market volatility the most. Rosengren is a voting member of the Fed’s policy committee and therefore will have a say in the Fed’s decision.

Having advocated low rates in the recent past, and widely considered to be a dovish member, Rosengren stated that “based on data that we have received to date…a reasonable case can be made for continuing to pursue a gradual normalization of monetary policy”. The FOMC voter echoed hawkish statements by other Fed Members recently, by warning over the risks of waiting too long to tighten and confirmed that the economy is performing quite well with the labor market nearing full-employment and inflation slowly returning towards the 2% target.

Until the monetary policy meeting scheduled on September 20-21, there will be only one more speech by any Fed Member ahead of the blackout period for public comments by Fed Members. The central bank’s most dovish official, Governor Lael Brainard, will be delivering a previously unannounced speech on Monday at The Chicago Council on Global Affairs.

Last week, three central bank meetings were concluded with no new policy changes announced. Reserve Bank of Australia decided to stand pat on interest rates on Tuesday and Bank of Canada maintained its overnight rate at 0.5% as anticipated, but the European Central Bank disappointed markets even though it left the rates unchanged.

The ECB had been expected to extend its asset purchase program of buying €80 billion worth of bonds a month, beyond the March 2017 end-date, but ECB President Draghi stated that policy makers didn’t even discuss any fresh stimulus measures and gave no explicit guidance about the central bank’s next moves.

Eurozone data released in the past week was disappointing – with service-sector activity stagnating around a 19-month low, industrial production plunging and inflation being stuck near zero and showing no signs of coming close to the central bank’s target of 2%. In the coming week, the German ZEW Economic Sentiment survey, Eurozone trade balance and EU CPI(August Final) are on the calendar of data releases, but none of these releases are expected to be major market movers for the euro.

The British Pound will be in focus next week with a chain of data being released before the Bank of England’s monetary policy announcement. Most of the data released recently are considered to be broadly indicative of the outlook for the British economy, for a full month after the Brexit vote. The data readings, especially readings from the service sector that have pointed to an expansion, have mostly been above expectations, indicating the limited impact of Brexit on the country’s economy.

Data on inflation, employment and retail sales is due to be reported in the coming week. The U.K. Office for National Statistics will publish data on consumer price inflation for August on Tuesday, monthly jobs report on Wednesday, and data on retail sales on Thursday.

Chinese industrial production and retail sales data by the National Bureau of Statistics is scheduled to be released on Tuesday. Markets expect factory output to have risen by 6.1% last month, after increasing by 6.0% in July, while August’s retail sales are forecast to report a growth rate similar to the July rate of growth at 10.2%.

These numbers could impact the AUD and NZD, as China is their largest trading partner. Dairy prices continue to rise helping the Kiwi to outperform the Aussie and are creating pressure on the AUD/NZD cross, taking it to the lowest level since late April 2015.

In the week ahead, the main focus for the New Zealand dollar will be second-quarter GDP data, which is expected to report the strongest performance since the last quarter of 2013. A positive reading will push the NZD higher across the board, and pave the way for the AUD/NZD pair to retreat further.

The Swiss National Bank’s quarterly policy assessment is due on Thursday with most economists expecting the central bank’s benchmark interest rate to remain unchanged at -0.75%. According to Reuters, the SNB will stick to its commitment towards foreign currency interventions in order to reduce demand for the franc.

In the energy markets the focus remains on Oil. Oil prices tumbled on Friday but closed the week higher, fueled by Russia and Saudi Arabia’s commitment to work together to help rebalance the markets and a surprisingly large drawdown in U.S. crude stocks.

U.S. Energy Information Administration confirmed a huge draw-down in U.S. crude inventories on Thursday. The surprise development had been reported first on Wednesday by the API. Government data showed that U.S. crude stocks dropped by 14.5 million barrels last week to 511.4 million barrels – the biggest weekly drop in stockpiles since January 1999.

Crude prices may receive further support next week, as U.S oil producers could be hit by a delay in the North Dakota oil pipeline construction. Following ongoing protests from environmentalists and Native American tribes, the U.S. Justice Department asked operators of the Dakota Access pipeline to suspend construction along a 40-mile (64 km) stretch in North Dakota on Friday. With the suspension, local oil producers and shippers are facing the possibility of greater delays in setting up a quick route to ship oil to the Gulf of Mexico.

For the week ahead, oil traders will be focusing on U.S. oil supplies data on Tuesday by the American Petroleum Institute, data on stockpiles by the U.S. Energy Information Administration on Wednesday, and U.S. oil rig count by Baker Hughes on Friday for fresh supply-and-demand balance signals.

 

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DAX30 Market Outlook by Option Banque

DAX Tumbles On U.S Rate Fears – Are Higher Interest Rates Coming Soon?

European stock markets mirrored the slump in Asian markets, creating a big gap down at the start of trading on Monday. Germany’s benchmark DAX30 dropped more than 2.0% to 10,340.98 in early trade, following a 0.98% decline on Friday, after speculation that the U.S Federal Reserve may act as soon as this month on rate tightening was revived.

Boston Fed President Eric Rosengren, a voting member of the Fed’s policy committee who is widely considered as a dovish policymaker, stated in a speech on Friday that given the recent data, “a reasonable case can be made for continuing to pursue a gradual normalization of monetary policy”.

Having advocated low rates in the recent past, Rosengren triggered market volatility the most by shifting his stance to from dovish to hawkish. The FOMC voting member’s speech echoed statements by other Fed Members recently, that warned over the risks of waiting too long to tighten policy, with the labor market nearing full-employment and inflation slowly returning towards the 2% target.

At the time of writing, none of the DAX’s constituents was trading higher. The worst performer was German utility company EON which dropped 12.44% in early trading. Today is the first day that EON is trading as a smaller company after Uniper SE, a new company containing EON’s power stations burning coal and gas, and commodity and energy trading businesses, was finally spun off and will trade separately on the Frankfurt stock exchange.

Uniper has started trading at €10.015 a share and the price has not recorded any changes yet. The stock will be included in the nation’s benchmark DAX index for one day only before dropping out.

The second biggest loser was industrial gas maker Linde AG which has lost 7.83%, after the news on Monday that the preliminary discussions about a merger between the German group and the Connecticut-based company Praxair Inc. had ended. Linde and Praxair had been in talks since mid-August about a merger in order to create the world’s largest supplier of industrial gases.

Other companies that recorded considerable losses include EON’s rival RWE, down 2.85%. Airline operator Deutsche Lufthansa, dropped 3.28%, and steel-maker ThyssenKrupp, plunged by 3.5%. Financial stocks were broadly lower, with Germany’s Commerzbank and Deutsche Bank losing 3.31% and 3.44%, respectively.

Fig: DAX30 D1 Technical Chart

The German benchmark is extending its retreat from 9-month highs at around 10780.00 for the third day in a row. The price has marked the first instance since mid-July that it has broken through the 50-day moving average. This crossover from above could be another confirmation for a reversal into a downtrend after the RSI index also broke through the 50-line from above to as low as 41.98.

Trade suggestion

Buy Digital Put Option from 10370.00 to 10281.80 valid until 20:00 GMT September 12, 2016

 

[Option_Banque]

Daily Report on September 12, 2016 by Option Banque


Daily Report on September 12, 2016



The global equity selloff resumed in Asia after clouding European and U.S markets on Friday. Investor confidence in equities was shattered by slumping oil prices and concerns that the world’s biggest central banks are slowing down the pace of unleashing aggressive easing measures, while the U.S Federal Reserve may start increasing its benchmark rates as soon as next week.



MSCI's broadest index of Asia-Pacific shares outside Japan fell by 1.9 percent, followed by Shanghai with a fall of 1.5 percent, while Australian stocks sank 2 percent, marking the largest daily drop since the selloff in late June following the Brexit vote. Japan’s Nikkei 225 lost 1.5 percent as the yen gained ground, thanks to rising demand for safe-haven assets and surprise gains in Japanese core machinery orders.



According to Japan’s Cabinet Office data reported on Monday, the country’s core machinery orders increased unexpectedly by 4.9% in July (seasonally adjusted), contrasting with estimates calling for a decline of 2.8%. The gauge for mid-term capital spending rose for a second straight month after spiking 8.3% in June, easing some pessimism over negative effects of a stronger yen on business investment.



Oil prices extended losses after falling nearly 4% on Friday as a result of an increase in the number of rigs drilling for crude oil last week and an upcoming output ceiling instead of a freeze deal at current levels. U.S drillers increased the number of oil rigs for a 10th week out of the past 11 weeks to 414, the most since February, said Baker Hughes Inc. Meanwhile, OPEC and other producers are mulling over a voluntary a deal involving each country committing that its production quantities shall not surpass a certain ceiling.



These voluntary oil output caps are to accommodate the demand of Iran, Libya and Nigeria to raise their output. Even though this solution seems not to be as effective as an output freeze agreement, it still promises to prevent a collapse which had happened previously in Doha, due to Iran’s bid to regain its pre-sanctions market share while Nigeria and Libya are looking to increase production after political turmoil restricted output.

The market focus on this quiet Monday is on the speech by the most dovish Fed Governor Lael Brainard. She will make the last scheduled appearance by a U.S. central banker before the traditional pre-meeting quiet period until Fed officials gather in Washington on September 21.



Technicals

AUDUSD

Fig: AUDUSD H4 Technical Chart

AUDUSD has fallen back into the descending trading channel following a decisive slide last week. The pair also attempted to surpass the 38.2% level but exhausted bears could not retain the momentum and had to let go of the milestone and the pair has pulled back. Nonetheless, the Aussie is expected to breach this support as the MA20 has crossed through the MA50 from above. The crossover has signaled further retreat in the AUDUSD. The upside is limited as the prices are contained in the channel.

Trade suggestion

Buy Digital Put Option from 0.75250 to 0.74880 valid until 20:00 GMT September 12, 2016



USDCAD

Fig: USDCAD H4 Technical Chart

USDCAD has broken out of the triangle formation, trading higher for the fourth trading day in a row. Bulls have pushed the market into an overextended state as RSI index is lingering around the 70 threshold. Profit taking has depressed the price from the highs around key level 1.30800 but the two MAs have converged below the price action, supporting further advances.

Trade suggestion

Buy Digital Call Option from 1.30800 to 1.31460 valid until 20:00 GMT September 12, 2016

EURCHF

Fig: EURCHF H4 Technical Chart

EURCHF is once again heading for the 61.8% Fibonacci retracement at 1.09774 and attempting to break above this level. Looking back at the previous failed attempts in the past, we can see that every time the pair tried to make a breakout, the market had already entered the overbought zone. As a result, the bulls failed to maintain their momentum, and had to let the bears step in. This time, the pair is on the rise after a correction with %K line penetrating the %D line from below and pointing up from the current level at around 50. With support from the two MAs placed below the price action, EURCHF is likely to retest the high at 1.09995 created on September 01.

Trade suggestion

Buy Digital Call Option from 1.09775 to 1.09990 valid until 20:00 GMT September 12, 2016


GOLD

Fig: GOLD H4 Technical Chart

Gold slid back below the 1330.00 threshold as a result of a steep drop from more than three-week highs at around 1352.50 which were reached last week. The yellow metal had reached the overbought zone as a result of this sharp spike. As can be seen from the stochastic chart, the %K line has crossed over the %D line and gold is experiencing some corrective moves. Coupled with the fact that 1330.00 is a firm zone of resistance, and that the market remains in bearish territory, the current up moves are not expected to last long.

Trade suggestion

Buy Digital Put Option from 1330.00 to 1324.55 valid until 20:00 GMT September 12, 2016



BRENT

Fig: BRENT H4 Technical Chart

Brent opened the new week with a gap down and continued to head downwards to the 23.6% retracement level at 46.47. The crude price has crossed over the 50-period moving average from above, which has consolidated the downtrend. The RSI index that has only fallen to 38.28 thus far, suggests that there is further room for a retreat.

Trade suggestion

Buy Digital Put Option from 47.20 to 46.47 valid until 20:00 GMT September 12, 2016



FTSE

Fig: FSTE H4 Technical Chart

Having declined more than 1% on Friday, the FTSE is on the verge of falling into a downward slopping trading channel. Sellers have reigned through the trading session on Friday, and ramped up the selloff so hastily that it didn’t give the index any chance of a bounce-back or consolidation. The market has fallen into the oversold zone but the wide gap between the %K line and the %D lines indicate little chances of a bounce-back. The index looks set to dip lower today.

Trade suggestion

Buy Digital Put Option from 6732.00 to 6660.00 valid until 20:00 GMT September 12, 2016

 

[Option_Banque]

Nasdaq Trading Signal On September 12, 2016

Nasdaq Trading Signal On September 12, 2016

Buy Digital Call Option from 4716.00 to 4733.00 valid until 21:00 GMT September 12, 2016
You can trade Different instruments, markets, indices and shares with Option Banque. Open an account now. Also you can share your own analysis in comments.

 

[Option_Banque]

U.S Stocks Get A Boost As The Case For September Rate Hike Eases

U.S Stocks Get A Boost As The Case For September Rate Hike Eases

U.S. stocks rose on Monday morning after Atlanta Fed Bank President Dennis Lockhart and his Minneapolis counterpart Neel Kashkari, on separate speeches, stated that there was no “urgency” to take action given the state of the economy.

Adding to the buying pressure was the remarks by Fed Governor Lael Brainard to the Chicago Council on Global Affairs. Ms. Brainard kept her stance as a dovish Fed member by arguing that potential weakness in the labor market and risks of foreign economic downturns cause the U.S economy not to be ready for leaving the its monetary stimulus too quickly.
S&P500 index was up 0.7%, led by 1.21% increase in Telecommunication Services and 1.03% advance in Comsumer Staples.

Trade suggestion
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[Option_Banque]

Daily Technical Analysis by Option Banque

Daily Report on September 13, 2016



Asian shares edged up on Tuesday, taking their cue from European and U.S equities last night which shot up on the dovish comments from Federal Reserve Governor Lael Brainard. In a speech to the Chicago Council on Global Affairs, Brainard – one of six permanent voters on the Fed committee – stated that a labor market which is not-yet-at-full-employment and economic weakness abroad may demand more prudence in the move toward tighter Fed policy.

Brainard’s comments weakened the case for a September rate hike, triggering the recovery in stocks and weakening the U.S dollar.

Large Japanese manufacturers turned optimistic over the country’s business conditions in the third quarter, the joint survey by the Ministry of Finance and the Economic and Social Research Institute showed on Tuesday. The business survey index (BSI) which measures business sentiment among big manufacturers’ during the July-September period, came out at 2.9, beating expectations for a reading of -6.5.

The Australian dollar dipped slightly in early trade following comments from Reserve Bank of Australia assistant governor Christopher Kent on the need for a weaker currency. The central bank official said that the Aussie had not depreciated as much as expected in response to weaker commodity prices and cuts in interest rates that have brought the cash rate to a record low of 1.5%.

Australia’s biggest trading partner, China, is reporting some signs of recovery after some disappointments in July. Data from the National Bureau of Statistics indicated that factory output, investment and retail sales all exceeded forecasts. Industrial production rose by 6.3 percent from a year earlier in August, retail sales climbed 10.6 percent last month, compared to the same period last year while fixed-asset investment increased 8.1 percent year to date.



Technicals

EURJPY



Fig: EURJPY H4 Technical Chart

EURJPY generally has been on a decline from as high as 115.938. The short-term MA has just crossed over the long-term MA from above, consolidating the downtrend. Sellers are still overwhelming the market, suggesting more down moves which may push the pair to as low as 113.930.

Trade suggestion

Buy Digital Put Option from 114.400 to 113.930 valid until 20:00 GMT September 13, 2016



NZDUSD



Fig: NZDUSD H4 Technical Chart

After failed attempts to break above the 50% retracement at 0.74715, NZDUSD not only fell back into the ascending trading channel but also hit a more-than-one-week low at around 0.72898. The pair pulled back from the lower boundary of the channel and is currently facing firm resistance at 0.73420. Weakening bulls have failed to push the price past the MA20. The market remains in bearish territory. With the RSI pointing towards the oversold zone, further declines are expected.

Trade suggestion

Buy Digital Put Option from 0.73370 to 0.73110 valid until 20:00 GMT September 13, 2016



GBPCAD



Fig: GBPCAD H4 Technical Chart

GBPCAD has built upon the bullish formation, after some corrective moves. Buyers have reigned in the market since mid-August and taken the pair considerably higher. The two MAs placed below the price action are fueling the bullish momentum but the resistance at 1.74500 should be watched closely, as the market has reversed from this zone on multiple occasions previously

Trade suggestion

Buy Digital Call Option from 1.74100 to 1.74500 valid until 20:00 GMT September 13, 2016



SILVER



Fig: SILVER H4 Technical Chart

Silver is struggling around the major resistance level at 19.2000, and the upside currently seems limited as the two MAs placed above the price action, and are casting downward pressure on prices. The last three candles with long upper shadows and almost no lower shadows show strong but careful bulls moving cautiously when the price nears the key resistance level. The %K line has entered the overbought zone, and may cross through the %D line from above, signaling a possible pullback.

Trade suggestion

Buy Digital Put Option from 19.100 to 18.850 valid until 20:00 GMT September 13, 2016



WTI



Fig: WTI H4 Technical Chart

U.S crude prices continued to trade within the triangle formation, and have just pulled back from the upper boundary connecting lower lows since August 19. The 23.6% retracement level is within sight of the oil price. However, recently this level has been broken through quite easily. Therefore, if the bear can sustain its momentum, WTI may trader lower towards the lower boundary of the trading range.

Trade suggestion

Buy Digital Put Option from 45.80 to 45.00 valid until 20:00 GMT September 13, 2016



EURO50



Fig: EuroStoxx50 H4 Technical Chart

Euro Stoxx 50 index rebounded from below the 38.2% level and broke back into the ascending trading range that has enveloped the recent price action. RSI has rallied from the oversold territory to near the 50 line. The resistance at 3050.00 is currently within sight of the price action. We should wait for the index to surpass this level before an uptrend can be confidently confirmed.

Trade suggestion

Buy Digital Call Option from 3050.00 to 3074.30 valid until 20:00 GMT September 13, 2016

 

[Option_Banque]

Oil Falls on Slower Market Rebalancing Pace Forecast

Oil Falls on Slower Market Rebalancing Pace Forecast

Crude prices dipped on Tuesday after monthly report by the International Energy Agency showed that global demand for oil is slowing. The IEA cut its global oil demand forecast by about 100,000 barrels a day for this year and 200,000 barrels a day in 2017.

Oil consumption is expected to increase more slowly at 1.3 million barrels a day in 2016 and 1.2 million barrels a day next year due to ongoing economic slowdown and heavy flooding in China which dented demand in industrial oil use and transport fuel. India, Europe and the U.S which are also forecast to lose momentum in the third quarter, also cited as a reason of the projection downgrade.

Trade suggestion

Buy Digital Put Option from 47.35 to 47.15 valid until 20:00 September 13, 2016