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  • Sterling spiraled lower on Friday as British elections left no single party with a clear claim to power, sideswiping investors who had already weathered major risk events in the United States and Europe. With the majority of seats counted in the snap vote, British Prime Minister Theresa May had no way to win an outright majority in parliament. The shock outcome saw the pound shed 2 percent on fears the political turmoil could delay and confound talks on leaving the European Union, which are due to start in less than two weeks. The rot started when an exit poll showed the ruling Conservatives could fail to win a clear majority when markets had expected a handy victory. The BBC forecast the Conservatives would hold a reduced 318 seats in the 650-member parliament, following a big swing to the left-leaning opposition Labour Party. For the latest updates, click. Betting agencies were already taking wagers on whether May would still have her job by the end of the day. The single currency had slipped overnight when the European Central Bank cut forecasts for inflation and said it had not discussed scaling back its massive bond-buying campaign, sending bond yields to multi-month lows.
  • The dollar was higher against other major currencies on Friday, as markets were still digesting former FBI director James Comey’s testimony and awaiting the final results of the U.K. election. In testimony to a Senate committee on Thursday, Comey accused President Donald Trump of firing him to try to undermine his investigation into possible collusion by the Trump campaign team with Russia's alleged efforts to influence the 2016 presidential election. Overnight, gold prices fell on Thursday, as testimony from former FBI Director James Comey to the Senate Committee was less controversial than many had feared, easing investor concerns about a sharp rise in U.S. political turmoil which dampened demand for safe havens. Investors were relived as former FBI Director James Comey’s public testimony to the Senate Committee offered little to spark further political turmoil in Washington, after he confirmed that President Donald Trump was not directly under investigation at the time he was fired. Comey’s testimony overshadowed economic data, showing U.S. initial jobless claims fell by less than expected. The U.S. Department of Labor reported that initial jobless claims decreased by 10,000 to 245,000 in the week ended June 3, below forecasts of a 15,000 decline. Meanwhile in Europe, the European Central Bank (ECB) lowered Eurozone inflation expectations for the next two years, and said policymakers had not discussed tapering its massive bond buying program. At a press conference after the ECB issued its decision to keep interest unchanged, ECB President Mario Draghi said interest rates were likely to remain at current levels for “an extended period of time. The dovish comments from Mr Draghi weighed on the euro, lifting the dollar higher, which dampened demand for the precious metal.
  • Japan's core machinery orders likely fell for the first time in three months in April, a Reuters poll showed, but analysts believe companies' capital spending plans remain solid as the global economy recovers. The poll also showed that the Bank of Japan is expected to keep its monetary policy unchanged next week as the economy is growing modestly despite weak inflation and consumer spending. Core machinery orders likely fell 1.3 percent in April from the previous month after a 1.4 percent rise in March, the Reuters poll of 15 economists showed. From a year earlier, core orders, which exclude those for ships and electrical equipment, rose 6.3 percent in April. As for the BOJ, analysts expect it will keep its short-term policy interest rate at minus 0.1 percent and the 10-year government bond yield target at around zero percent at a two-day policy meeting on June 15-16.
  • Oil prices stabilized on Friday following steep falls earlier this week, but they were still pressured by evidence of an ongoing fuel glut despite efforts led by OPEC to tighten the market by holding back production. The slump was a result of oversupply despite the effort led by the OPEC to cut almost 1.8 million bpd of production until the first quarter of 2018. U.S. EIA data this week showed a surprise build in commercial crude oil stocks to 513.2 million barrels this week . Inventories of refined products were also up, despite the start of the peak demand summer season. The bank said that refined product inventories were now back above 2016 levels and well above their five-year range, adding that this was due to a surprise slowdown in U.S. demand for gasoline and distillate fuels. Asian markets are also oversupplied, with traders continuing to put excess crude into floating storage, a key indicator for a glut. And more production is coming. Libya's 270,000 bpd Sharara oil field has reopened after a workers' protest and should return to normal production within three days, the National Oil Corporation said in a statement on Friday.

 

 
Intraday RESISTANCE LEVELS
9th June 2017 R1 R2 R3
GOLD-XAU 1,278 1,286 1,300-1,307
Silver-XAG 17.70-18.05 18.30 18.60
Crude Oil 46.00 46.95-47.50 48.40
EURO/USD 1.1250 1.1290-1.1370 1.1425
GBP/USD 1.2720-1.2790 1.2845 1.2900
USD/JPY 110.00-110.40 111.10 111.60-112.00

Intraday SUPPORTS LEVELS
9th June 2017 S1 S2 S3
GOLD-XAU 1,270 1,260 1,254-1,246
Silver-XAG 17.20-16.90 16.60 16.10-15.65
Crude Oil 45.22-44.45 43.90 43.00
EURO/USD 1.1200 1.1100-1.1055 1.0970
GBP/USD 1.2670-1.2615 1.2570 1.2500
USD/JPY 109.50-109.00 108.55 108.00

Intra-Day Strategy (9th 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 Thursday and made its intraday high of 1288.80/oz and intraday low of US$1288.80/oz. Gold down by 0.709% at US$1277.73/oz.

Technicals in Focus:

In daily charts, prices are above 200DMA (1241) and breakage below will call for 1234-1224. 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 neutral territory and giving negative crossover to confirm bearish stance for intraday trade.

Trading Strategy: Neutral

Based on the charts and explanations above; sell below 1278-1307 keeping stop loss closing above 1307 and targeting 1270-1260 and 1254-1244. Buy above 1260-1244 with risk below 1244, targeting 1278-186 and 1294-1300-1307.

 
Intraday Support Levels
S1     1,270
S2     1,260
S3     1,254-1,246
Intraday Resistance Levels
R1     1,278
R2     1,286
R3     1,300-1,307

Technical Indicators

Name   Value Action
14DRSI  

55.834

Buy
20-DMA   1263.81 Buy
50-DMA  

1259.61

Buy
100-DMA   1243.66 Buy
200-DMA   1240.94 Buy
STOCH(5,3)   50.903 Sell
MACD(12,26,9)   8.613 Sell

Silver - XAG

AAFX TRADING

Silver closed down Thursday on made its intraday high of US$17.66/oz and intraday low of US$17.28/oz. Silver settled by down by 0.797% at US$17.41/oz.

Technicals in Focus:

On daily charts, silver is sustaining below 100DMA (17.49), 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 neutral region and giving negative crossover to show downside 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   52.457 Buy
20-DMA   17.19 Buy
50-DMA   17.36 Sell
100-DMA   17.49 Sell
200-DMA   17.52 Sell
STOCH(5,3)   50.945 Sell
MACD(12,26,9)   0.109 Buy

Oil - WTI

AAFX TRADING

Crude Oil on Thursday made an intra‐day high of US$46.16/bl and made an intraday low of US$45.17/bbl and settled down by 0.392% at US$45.66/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 46.00-49.00 with stop loss at 49.00; targeting 45.20-44.50 and 43.90-43.00. Buy above 45.22-43.00 with risk daily closing below 43.00 and targeting 46.00-46.95-47.50 and 48.40-49.00.

 
Intraday Support Levels
S1     45.22-44.45
S2     43.90
S3     43.00

Intraday Resistance Levels
R1     46.00
R2     46.95-47.50
R3     48.40

TECHNICAL INDICATORS
Name   Value Action
14DRSI   33.917 Sell
20-DMA   48.79 Sell
50-DMA   49.40 Sell
100-DMA   50.61 Sell
200-DMA   49.75 Sell
STOCH(5,3)   10.682 Sell
MACD(12,26,9)   -0.661 Sell

EUR/USD

AAFX TRADING

EUR/USD on Tuesday made an intraday low of US$1.1193/EUR and made an intraday high of US$1.1268/EUR and settled the day down by 0.186% at US$1.1213/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 1.1250-1.1425 targeting 1.1200-1.1100 and 1.1054-1.0970 with stop-loss at daily closing above 1.1425. Buy above 1.1200-1.0970 with risk below 1.0970 targeting 1.1250-1.1290-1.1365 and 1.1425-1.1460.

 
Intraday Support Levels
S1     1.1200
S2     1.1100-1.1055
S3     1.0970

Intraday  Resistance Levels
R1     1.1250
R2     1.1290-1.1370
R3     1.1425

TECHNICAL INDICATORS
Name   Value Action
14DRSI   59.189 Buy
20-DMA   1.1192 Buy
50-DMA   1.0945 Buy
100-DMA   1.0809 Buy
200-DMA   1.0823 Buy
STOCH(5,3)   38.508 Sell
MACD(12,26,9)   0.0082 Buy

GBP/USD

AAFX TRADING

GBP/USD on Thursday made an intra‐day low of US$1.2906/GBP and made an intraday high of US$1.2977/GBP and settled the day up by 0.054% at US$1.12950/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 1.2720-1.2950 with targets at 1.2670-1.2615 and 1.2570-1.2500, breakage above 1.2950 look for further upside with 1.300 as targets. Buy above 1.2670-1.2500 with stop loss closing below 1.2500 targeting 1.2720-1.2790 and 1.2845-1.2900-1.2950.

 
Intraday Support Levels
S1     1.2670-1.2615
S2     1.2570
S3     1.2500

Intraday Resistance Levels
R1     1.2720-1.2790
R2     1.2845
R3     1.2900

TECHNICAL INDICATORS
Name   Value Action
14DRSI  

36.835

Buy
20-DMA   1.2909 Buy
50-DMA   1.2617 Buy
100-DMA   1.2617 Buy
200-DMA   1.2576 Buy
STOCH(5,3)   44.050 Sell
MACD(12,26,9)   0.0074 Sell

USD/JPY

AAFX TRADING

USD/JPY on Thursday made intra‐day low of JPY109.37/USD and made an intraday high of JPY110.38/USD and settled the day up by 0.136% at JPY109.96/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   37.627 Buy
20-DMA   111.26 Sell
50-DMA   111.08 Buy
100-DMA   112.09 Sell
200-DMA   110.43 Buy
STOCH(9,6)   17.838 Sell
MACD(12,26,9)   -0.392 Sell

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