AAFX TRADING

Daily Market Lookup

  • Escalating tensions in the Middle East, the impending testimony of the former FBI director, British elections and a European Central Bank meeting this week, all took their toll on Asian stocks, oil and the dollar on Tuesday. Oil fell back following a brief recovery after Saudi Arabia and several other Arab states severed ties with Qatar, accusing it of supporting extremism and undermining regional stability. The dollar index touched a seven-month low ahead of testimony before Congress from former FBI director James Comey on Thursday. It has been reported that Comey plans to testify to conversations in which U.S. President Donald Trump pressured him to drop his investigation into former National Security Advisor Mike Flynn, who was fired for failing to disclose conversations with Russian officials. News on Monday of U.S. services sector activity slowing in May as new orders tumbled also hit the dollar. The dollar also came under pressure from a stronger euro, on expectations the European Central Bank will take a less dovish tone at its Thursday meeting. The ECB may even discuss dropping some of its pledges to ramp up stimulus if needed, four sources with direct knowledge of the discussions told Reuters last week. The lead of British Prime Minister Theresa May over the opposition Labour Party ahead of Thursday's general election has narrowed to just 1 percentage point, according to a poll conducted before the attacks in London on Saturday. Other polls in recent days have found bigger leads for the Conservatives of up to 11 and 12 points. Investors are awaiting the Reserve Bank of Australia policy decision later on Tuesday, when its benchmark rate is expected to be held at a record low 1.5 percent.
  • Gold prices rose to their highest level in more than six weeks in European trade on Tuesday, as investor sentiment remained skewed toward safe-haven assets ahead of testimony from the former FBI director and British elections later this week. Gold prices scored a second-straight session of gains Monday as market players monitored fresh geopolitical tension in the Middle East as well as the fallout from the weekend terror attack in London. Market players will pay close attention to former FBI director James Comey's testimony before the Senate Intelligence Committee on Thursday, in a hearing that could add to difficulties facing President Donald Trump. It has been reported that Comey plans to testify to conversations in which Trump pressured him to drop his investigation into former National Security Advisor Mike Flynn, who was fired for failing to disclose conversations with Russian officials. Other polls in recent days have found bigger leads for the Conservatives of up to 11 and 12 points. A failure to win the election with a large majority would weaken May just as formal Brexit talks are due to begin, while the loss of her majority in parliament would pitch British politics into turmoil. Gold is often seen as an alternative currency in times of global economic uncertainty and a refuge from financial risk. Reduced expectations for aggressive U.S. rate hikes from the
  • Oil prices fell for a third day on Tuesday, hit by concerns that a political rift between Qatar and several Arab states would undermine an OPEC-led push to tighten the market. Persistent gains in U.S. production also dragged on benchmark crude prices, traders said. Leading Arab powers including Saudi Arabia, Egypt, and the United Arab Emirates cut ties with Qatar on Monday, accusing it of support for Islamist militants and Iran. Steps taken include preventing ships coming from or going to the small peninsular nation to dock at Fujairah, in the UAE, used by Qatari oil and liquefied natural gas (LNG) tankers to take on new shipping fuel. With oil production of about 620,000 barrels per day (bpd), Qatar's crude output ranks as one of the smallest among the Organization of the Petroleum Exporting Countries (OPEC), but tension within the cartel could weaken an agreement to hold back production in order to prop up prices. Although Qatar is a small oil producer, other OPEC states could see such an action as a reason to stop restraining their own output, traders said. Worries over the outlook for OPEC's drive to rein in production come amid bulging supplies from elsewhere, especially the United States. U.S. crude production has jumped over 10 percent since mid-2016 to 9.34 million bpd , levels close to top producers Russia and Saudi Arabia.

 

 
Intraday RESISTANCE LEVELS
6th June 2017 R1 R2 R3
GOLD-XAU 1,290-1,300 1,307 1,314
Silver-XAG 17.70-18.05 18.30 18.60
Crude Oil 48.40 49.00 50.10-51.00
EURO/USD 1.1290-1.1370 1.1425 1.1460
GBP/USD 1.2950-1.3015 1.3050 1.3100
USD/JPY 110.00-110.40 111.10 111.60-112.00

Intraday SUPPORTS LEVELS
6th June 2017 S1 S2 S3
GOLD-XAU 1,278-1,270 1,260 1,252-1,247
Silver-XAG 17.20-16.90 16.60 16.10-15.65
Crude Oil 47.50-46.95 46.00 45.22
EURO/USD 1.1260 1.1200 1.1100-1.1055
GBP/USD 1.2900 1.2845 1.2790-1.2720
USD/JPY 109.50-109.00 108.55 108.00

Intra-Day Strategy (6th June 2017)
GOLD-XAU Neutral
Silver-XAG Neutral
Crude Oil Neutral
EUR/USD Neutral to Sell
GBP/USD Neutral to Sell
USD/JPY Neutral to Buy

Gold – XAU

AAFX TRADING

Gold closed down on Monday and made its intraday high of 1283.29/oz and intraday low of US$1277.67/oz. Gold down by 1.067% at US$1279.35/oz.

Technicals in Focus:

In daily charts, prices are below 200DMA (1244) and breakage above will call for 1292-1300. MACD is below zero line and histograms are decreasing trend and it will bring downward stance in the upcoming sessions. RSI is approaching neutral region and more upside is expected before it touched overbought region. Stochastic Oscillator is in overbought territory and giving positive crossover to confirm bearish stance for intraday trade.

Trading Strategy: Neutral

Based on the charts and explanations above; sell below 1290-1307 keeping stop loss closing above 1307 and targeting 1280-1276-1270 and 1260-1254. Buy above 1282-1247 with risk below 1247, targeting 1290-1300 and 1307-1314.

 
Intraday Support Levels
S1     1,278-1,270
S2     1,260
S3     1,252-1,247
Intraday Resistance Levels
R1     1,290-1,300
R2     1,307
R3     1,314

Technical Indicators

Name   Value Action
14DRSI  

63.201

Buy
20-DMA   1251.81 Buy
50-DMA  

1257.01

Buy
100-DMA   1240.62 Buy
200-DMA   1241.67 Buy
STOCH(5,3)   80.718 Buy
MACD(12,26,9)   6.786 Sell

Silver - XAG

AAFX TRADING

Silver closed down Monday on made its intraday high of US$17.63/oz and intraday low of US$17.48/oz. Silver settled by down by 0.057% at US$17.52/oz.

Technicals in Focus:

On daily charts, silver is sustaining below 100DMA (17.44), breakage above will lead to 17.80-18.00. MACD is above zero line and histograms are increasing trend and it will bring bullish stance in the upcoming sessions. RSI is in oversold region, indicating buy signal for now. The Stochastic Oscillator is in overbought region and giving positive crossover to show upside move for the intraday trade.

Trading Strategy: Neutral

Based on the charts and explanations above, buy above 17.20-15.65 targeting 17.70-18.05 and 18.30-18.60; stop breakage below 15.00. Sell below 17.70-18.60 with stop loss above 18.60; targeting 17.20-16.90-16.30 and 16.10-15.65.

 
Intraday  Support Levels
S1     17.20-16.90
S2     16.60
S3     16.10-15.65

Intraday  Resistance Levels
R1     17.70-18.05
R2     18.30
R3     18.60

TECHNICAL INDICATORS
Name   Value Action
14DRSI   63.643 Buy
20-DMA   17.02 Buy
50-DMA   17.41 Sell
100-DMA   17.48 Sell
200-DMA   17.54 Sell
STOCH(5,3)   91.318 Buy
MACD(12,26,9)   0.111 Buy

Oil - WTI

AAFX TRADING

Crude Oil on Monday made an intra‐day high of US$48.40/bl and made an intraday low of US$46.84/bbl and settled down by 0.629% at US$47.38/bbl on session close.

Technicals in Focus:

On daily charts, oil is sustaining below its 200DMA i.e. 49.76 which is a major resistance and breakage above will call for 50.30-51.00. MACD is below zero line and histograms are in decreasing mode will bring bearish stance in the upcoming sessions. The Stochastic Oscillator is in oversold region and giving negative crossover for confirmation of bearish stance; while the RSI is in oversold region and more downside can be expected.

Trading Strategy: Neutral

Based on the charts and explanations above; sell below 48.40-51.60 with stop loss at 52.00; targeting 47.70-46.5 and 46.00-45.22. Buy above 47.70-46.05 with risk daily closing below 46.90 and targeting 50.10-51.00 and 51.70-52.20.

 
Intraday Support Levels
S1     47.50-46.95
S2     46.00
S3     45.22

Intraday Resistance Levels
R1     48.40
R2     49.00
R3     50.10-51.00

TECHNICAL INDICATORS
Name   Value Action
14DRSI   39.866 Sell
20-DMA   49.00 Sell
50-DMA   49.62 Sell
100-DMA   50.88 Sell
200-DMA   49.77 Sell
STOCH(5,3)   21.682 Sell
MACD(12,26,9)   -0.272 Sell

EUR/USD

AAFX TRADING

EUR/USD on Monday made an intraday low of US$1.1233/EUR and made an intraday high of US$1.1283/EUR and settled the day down by 0.168% at US$1.1253/EUR on session close.

Technicals in Focus:

On daily charts, prices are sustaining above 50DMA (1.0877), which become immediate support level, break below will target 1.0626-1.0600. MACD is below zero line but histograms are increasing mode which will bring bullish view. Stochastic is in oversold territory and giving sell crossovers to signal for bearish outlook for intraday. 14D RSI is currently in neutral region and giving upwards directions to consider buy.

Trading Strategy: Neutral to Sell

Based on the charts and explanations above; sell below 1.1270-1.1425 targeting 1.1260-1.1200 and 1.1100-1.1054 with stop-loss at daily closing above 1.1425. Buy above 1.1260-1.1100 with risk below 1.1100 targeting 1.1290-1.1365 and 1.1425-1.1460.

 
Intraday Support Levels
S1     1.1260
S2     1.1200
S3     1.1100-1.1055

Intraday  Resistance Levels
R1     1.1290-1.1370
R2     1.1425
R3     1.1460

TECHNICAL INDICATORS
Name   Value Action
14DRSI   66.087 Buy
20-DMA   1.1140 Buy
50-DMA   1.0913 Buy
100-DMA   1.0792 Buy
200-DMA   1.0822 Buy
STOCH(5,3)   89.747 Buy
MACD(12,26,9)   0.0098 Buy

GBP/USD

AAFX TRADING

GBP/USD on Monday made an intra‐day low of US$1.2857/GBP and made an intraday high of US$1.2940/GBP and settled the day up by 0.349% at US$1.2904/GBP on session close.

Technicals in Focus:

On daily charts, prices are sustaining above 200DMA (1.2616) is become major support level. 14-D RSI is currently in neutral region and direction is difficult to predict on RSI bases. The Stochastic Oscillator is in overbought territory and giving positive crossover to confirm bullish stance. MACD is below zero line and histograms are decreasing lead to downward movement.

Trading Strategy: Neutral to Sell

Based on the charts and explanations above; short positions below 1.2950-1.3100 with targets at 1.2900-1.2845 and 1.2790-1.2720, breakage above 1.3100 look for further upside with 1.3150 as targets. Buy above 1.2900-1.2720 with stop loss closing below 1.2700 targeting 1.2950-1.3015 and 1.3050-1.3100.

 
Intraday Support Levels
S1     1.2900
S2     1.2845
S3     1.2790-1.2720

Intraday Resistance Levels
R1     1.2950-1.3015
R2     1.3050
R3     1.3100

TECHNICAL INDICATORS
Name   Value Action
14DRSI  

55.221

Buy
20-DMA   1.2914 Buy
50-DMA   1.2781 Buy
100-DMA   1.2601 Buy
200-DMA   1.2581 Buy
STOCH(5,3)   80.050 Buy
MACD(12,26,9)   0.0023 Sell

USD/JPY

AAFX TRADING

USD/JPY on Monday made intra‐day low of JPY109.56/USD and made an intraday high of JPY111.51/USD and settled the day down by 0.760% at JPY109.61/USD.

Technicals in Focus:

In daily charts, JPY is sustaining above 200DMA (108.90), which is major support on the daily chart. 14-D RSI is currently is approaching oversold region. MACD is above zero line but histograms are in decreasing mode which might lead to downward movement. The Stochastic Oscillator is approaching overbought territory and signaling to sell as it has given negative crossover to confirm bearish stance.

Trading Strategy: Neutral to Buy

Long positions above 109.50-108.00 with targets of 111.00-111.40 and 110.00-110.40 and 111.10-111.60 and 112.00-112.60 with stop below 108.00. Sell below 111.00-112.00 with risk above 110.200 targeting 109.50-109.00 and 108.55-108.00.

 
Intraday Support Levels
S1     109.50-109.00
S2     108.55
S3     108.00

INTRADAY RESISTANCE LEVELS
R1     110.00-110.40
R2     111.10
R3     111.60-112.00

TECHNICAL INDICATORS
Name   Value Action
14DRSI   36.983 Buy
20-DMA   111.70 Sell
50-DMA   111.15 Buy
100-DMA   112.19 Sell
200-DMA   110.37 Buy
STOCH(9,6)   5.250 Sell
MACD(12,26,9)   -0.392 Sell

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