AAFX TRADING

Daily Market Lookup

  • Asian stocks steadied on Wednesday but investors were wary ahead of an election in Britain, a European Central Bank meeting, and testimony at a Senate Intelligence Committee hearing by James Comey, the former FBI chief fired by President Donald Trump. All the events scheduled for Thursday are fraught with risk for investors, but testimony by former FBI chief James Comey posed a potential danger to Trump's economic agenda, and perhaps even his presidency. Reports suggest Comey plans to reveal conversations in which Trump allegedly pressured him to drop his investigation into former National Security Adviser Mike Flynn, who was fired for failing to disclose conversations with Russian officials. Risk-off sentiment pushed government bond prices up and yields lower, while propping up gold and the Japanese yen. The shrinking U.S. bond yields further weakened a dollar, already handicapped by heightened political uncertainty. Earlier opinion polls suggested the opposition Labour Party were virtually neck-and-neck with the ruling Conservatives, but a poll released on Tuesday put Prime Minister Theresa May on course to increase her parliamentary majority. The ECB policy meeting could lead to some discussion of dropping some of the central bank's pledges to ramp up stimulus if needed, four people with direct knowledge of the discussions told Reuters last week.
  • U.S. job openings surged to a record high in April and employers appeared to have trouble finding suitable workers, pointing to a tightening labor market that could encourage the Federal Reserve to raise interest rates next month. The Labor Department's monthly Job Openings and Labor Turnover Survey, or JOLTS, published on Tuesday also suggests that a recent moderation in job growth could be the result of a skills mismatch rather than easing demand for labor. JOLTS is one of the metrics on Fed Chair Janet Yellen's so-called dashboard of labor market indicators. It came ahead of the U.S. central bank's June 13-14 policy meeting, at which it is expected to raise its benchmark overnight interest rate by 25 basis points. Job openings, a measure of labor demand, increased 259,000 to a seasonally adjusted 6.0 million in April, the highest since the government started tracking the series in 2000.
  • Gold trended weaker on Wednesday in Asia as investors braced for a big day on Thursday with the European Central Bank, testimony by fired FBI chief James Comey and the U.K. election. Overnight, gold rose to seven-week highs on Tuesday, as safe-haven demand soared, ahead of risk events that could rattle markets while the dollar fell to its lowest level since November as investors questioned the strength of the U.S. economy amid weak economic data. Investors piled to into safe havens, such as U.S. treasuries, the yen, and gold, ahead of a flurry of risk events on Thursday that could spark turmoil in markets. On Thursday, investors will contend with Britain’s general election, the European Central Bank’s policy meeting and former FBI chief James Comey’s testimony before the Senate Intelligence Committee. Gold had achieved its longest winning streak since 2010 in May, advancing 0.05% for the month, despite rising expectations that the Federal Reserve would increase its benchmark rate at its June 13-14 meeting. Investor optimism about the pace of U.S. interest rate hikes over the longer-term, however, has been pegged back recently, as investors question whether recent economic data has deterred the Federal Reserve from its view that two additional rate hikes this year are appropriate. Gold is sensitive to moves in U.S. rates, which lift the opportunity cost of holding non-yielding assets such as bullion.
  • Oil prices dipped on Wednesday, with Brent crude futures around $50 per barrel, as fuel markets remained oversupplied, although tension in the Middle East and falling U.S. inventories lent some support. U.S. West Texas Intermediate (WTI) crude futures CLc1 were at $48.14 per barrel, down 5 cents from the previous close, and 6 percent below their May 25 open. Traders said an ongoing fuel glut was keeping prices under pressure despite a pledge by OPEC and other producers to cut almost 1.8 million bpd of output. World fuel production and consumption is roughly in balance, at almost 98 million bpd, although inventories remain bloated, the U.S EIA said on Tuesday. OPEC's efforts to tighten the market could be undermined by U.S. production which the EIA said could hit a record 10 million bpd next year, up from 9.3 million bpd now. That would nearly match the output level of top exporter Saudi Arabia. In the near-term, however, the market was supported by escalating tensions in the Middle East and by signs of a gradual drawdown of bloated U.S. fuel inventories. A campaign by leading Arab nations, including Saudi Arabia, Egypt and the United Arab Emirates, to isolate Qatar is disrupting trade, including oil. In the United States, crude inventories fell by 8.7 million barrels in the week to May 26, data from the American Petroleum Institute showed late on Tuesday. Official inventory data from the EIA will be published later on Wednesday.

 

 
Intraday RESISTANCE LEVELS
7th June 2017 R1 R2 R3
GOLD-XAU 1,300-1,307 1,314 1,322
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
7th June 2017 S1 S2 S3
GOLD-XAU 1,290 1,278-1,270 1,260
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 (7th 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 up on Tuesday and made its intraday high of 1295.96/oz and intraday low of US$1278.94/oz. Gold up by 1.172% at US$1293.93/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 1294-1322 keeping stop loss closing above 1321 and targeting 1290-1280-1276 and 1270-1260. Buy above 1290-1260 with risk below 1260, targeting 1300-1307 and 1314-1322.

 
Intraday Support Levels
S1     1,290
S2     1,278-1,270
S3     1,260
Intraday Resistance Levels
R1     1,300-1,307
R2     1,314
R3     1,322

Technical Indicators

Name   Value Action
14DRSI  

67.283

Buy
20-DMA   1259.12 Buy
50-DMA  

1258.59

Buy
100-DMA   1242.27 Buy
200-DMA   1241.38 Buy
STOCH(5,3)   89.903 Buy
MACD(12,26,9)   9.808 Sell

Silver - XAG

AAFX TRADING

Silver closed up Tuesday on made its intraday high of US$17.73/oz and intraday low of US$17.50/oz. Silver settled by up by 0.913% at US$17.68/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   63.203 Buy
20-DMA   17.10 Buy
50-DMA   17.40 Sell
100-DMA   17.49 Sell
200-DMA   17.53 Sell
STOCH(5,3)   89.318 Buy
MACD(12,26,9)   0.132 Buy

Oil - WTI

AAFX TRADING

Crude Oil on Tuesday made an intra‐day high of US$48.39/bl and made an intraday low of US$46.92/bbl and settled up by 1.182% at US$47.93/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   43.704 Sell
20-DMA   49.12 Sell
50-DMA   49.61 Sell
100-DMA   50.77 Sell
200-DMA   49.77 Sell
STOCH(5,3)   35.682 Buy
MACD(12,26,9)   -0.354 Sell

EUR/USD

AAFX TRADING

EUR/USD on Tuesday made an intraday low of US$1.1239/EUR and made an intraday high of US$1.1283/EUR and settled the day up by 0.204% at US$1.1276/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 Tuesday made an intra‐day low of US$1.2871/GBP and made an intraday high of US$1.2950/GBP and settled the day up by 0.054% at US$1.2910/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  

54.577

Buy
20-DMA   1.2913 Buy
50-DMA   1.2790 Buy
100-DMA   1.2607 Buy
200-DMA   1.2580 Buy
STOCH(5,3)   76.050 Buy
MACD(12,26,9)   0.0021 Sell

USD/JPY

AAFX TRADING

USD/JPY on Tuesday made intra‐day low of JPY109.21/USD and made an intraday high of JPY110.51/USD and settled the day down by 0.941% at JPY109.40/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

AAFX TRADING
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