Market Review, September 31, 2015

After the last tumultuous week on the markets,the investors are likely to focus on the data that will be published in the US, as when the Federal Reserve will testify whether the country might raise interest rates in a meeting that will end on September 17.
On Friday will be published monthly employment report will give a glimpse of the US labor market situation.
The world will follow after the economic changes in China to see if the market turmoil continues this coming week.
On a weekly summary on Wall Street, the NASDAQ climbed by 2.6%, the Dow Jones Industrial Average rose by 1.1% and the S&P 500 rose by 0.9%.

The volatile trading week did not ignore the European stock exchanges.
The English FTSE rose last week close to 1% and ended at a price level of 6,247,90. During the week the index had fallen to a level of 5,768,20.
The German DAX rose last week by 1.70% and ended at the price level of 10,299. During the week the index fell to the level of 9338.

Japan reported of a surprise drop in industrial output in the country, which exacerbated the fears on the part of investors who are concerned about the general slowdown in the region.
The Prime Minister of China said over the weekend that China’s economy is growing at a reasonable pace and despite the increasing pressure, the government could deal with the risks facing the country.
The Asian markets are expected to record their worst month in three years.

On a Weekly summary, the Oil recorded a leap of 11.8% when the price is determined at a price level of 45.22 dollars per barrel.
This is the highest weekly surge of Oil since March 2009.
The price of the Gold however fell last week by 2.32% and closed at a price level of 1,132 dollar an ounce.

The market disruption last week strengthened the US dollar which strengthened against the Euro by 1.50% and by 1.91% against the Pound sterling.

Trading Opportunity

On a daily chart we can see there is an ongoing bullish divergence at the histogram of the MACD indicator as the pair reached a support area, around the level of 0.7100.
Last week the pair was trading between the levels of 0.7065 – 0.7165, as the averages of the stochastic indicator are face up.

aud.usd d 31.8.15

Our tendency is to look for a CALL option trade.
The entry will be between the level of 0.7100 – 0.7150.
The expiry time will be September 11 at 17:10.