Data on the number of job openings in the US during March, excluding the farming industry, was released yesterday. It came in with a rise of 149,000 – to a total number of 5.8 million. According to the Labor Department, this reading on the Job Openings and Labor Turnover Survey (JOLTS) report, was the highest level since July. Layoffs continue to decrease suggesting that the labor market is staying firm in spite of the slowdown indicated in the April NFP data.
The US hiring rate also dropped to 3.7% from February’s 3.8%, which indicated that businesses was not finding enough qualified employees for open positions.
The Japanese Yen stayed has been defensive so far today, after two-consecutive-days of declines. This resulted from the Bank of Japan’s warning that it would intervene to ease the market. Yesterday, Japanese Prime Minister Shinzo Abe’s adviser Hamada has stated that Japan would act if the Yen strengthened to 90-95 per dollar, hinting at possible intervention to weaken the currency.
Oil prices are also plunging in early trading today as record crude oil inventories reported last week and expectations for further rises in the inventory data to be released later today are exerting downward pressure on the market. Canadian oil sands production is also likely to recover, as the wildfire situation is brought under control, and forced closures due to the wildfires, are brought back on line. The increasing tension between Middle East suppliers is also triggering concerns of continuous global glut, weighing on prices.
Brent crude oil futures dropped 3 cents to $45.49 per barrel compared with the last settlement, while U.S. West Texas Intermediate (WTI) crude futures lost 8 cents to $44.58 per barrel.
Technicals
AUDUSD
AUDUSD has witnessed a significant drop from a high of 0.78327 as seen in the red parabolics sar movement above the price. RSI is hovering around level 41 and pointing down, indicating a continuing downtrend for the pair. The price is anticipated to retest the support level at 0.72939, the lowest level in more than 2 months.
Trade suggestion
Buy Digital Call Option at 0.72939 valid until May 13, 2016
Buy Digital Put Option at 0.73565 valid until May 13, 2016
EURJPY
EURJPY retreated from around 124.562, after gaining for more than 5 consecutive days. The pair is hovering around the zone of Fibonacci retracement 50.0 with RSI heading down from level 60, indicating a weakening of the buying trend. The price is predicted to hit Fibonacci 23.6 area (around 122.644) before reversing. A selling order is encouraged.
Trade suggestion
Buy Digital Call Option at 122.644 valid until May 13, 2016
Buy Digital Put Option at 123.911 valid until May 13, 2016
NZDCAD
NZDCAD has been moving between the range of 0.87090 and 0.88725 since the beginning of the month. RSI is staying above level 50 and heading into overbought territory, indicating the formation of an up-move for the pair. The price may retest the resistance area at around 0.88725, created on April 5.
Trade suggestion
Buy Digital Call Option at 0.87952 valid until May 13, 2016
Buy Digital Put Option at 0.88725 valid until May 13, 2016
GOLD
Gold has gained consecutively for 2 weeks, from 1227.31 to as high as 1303.70. The commodity retreated from that resistance, and is currently moving sideways around the area of Fibonacci retracement 50.0, around the 1270.25 level. RSI is staying around level 46 and heading up, indicating strong buying power. Gold is expected to hit the zone of Fibonacci 23.6 before pulling back.
Trade suggestion
Buy Digital Call Option at 1270.25 valid until May 13, 2016
Buy Digital Put Option at 1285.67 valid until May 13, 2016
WTI
WTI has been moving sideways between 43.45 and 47.09 with the current price of 44.96. RSI is hovering around level 52 and heading up, along with DI- (green line) about to cross up DI+ (red line), indicating that a bearish trend has been formed. Despite the moving averages supporting from below, the commodity is expected to retest the support level at 43.45 soon.
Trade suggestion
Buy Digital Call Option at 43.45 valid until May 13, 2016
Buy Digital Put Option at 44.96 valid until May 13, 2016
SP500
SP500 has gained for 5 consecutive sessions to as high as 2084.07. The bullish market has been formed since the green arrow appeared. RSI seems to be strong at level 64 and heading up, indicating that the index is about to enter the overbought territory. The price is expected to hit the resistance at 2099.26, the highest level in more than 3 weeks.
Trade suggestion
Buy Digital Call Option at 2084.07 valid until May 13, 2016
Buy Digital Put Option at 2099.26 valid until May 13, 2016
