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Daily Market Lookup

  • The dollar shuddered to its lows for the year on Thursday as a drumbeat of hawkish comments from major central banks signalled the era of easy money might be coming to an end for more than just the United States. Support for the dollar eroded as investors realised the U.S. Federal Reserve might not be the only game in town when it came to higher interest rates. In Britain, Bank of England Governor Mark Carney surprised many by conceding a hike was likely to be needed as the economy came closer to running at full capacity. That followed comments earlier in the week from European Central Bank President Mario Draghi that stimulus might need to be toned down so it does not become more accommodative as the economy recovers. ECB sources tried to hose down the talk but could not stop the euro hitting a one-year high against the U.S. dollar. The euro also surged to a 16-month top on the yen as investors doubt the Bank of Japan will be in any position to begin winding back its stimulus for a long time to come.
  • Gold prices edged higher in European trade on Thursday, as the dollar extended its recent decline to the lowest level since October, boosting the appeal of the yellow metal. The dollar wallowed at one-year lows against the euro and slipped against sterling as investors priced in tighter monetary policy in Europe, following hawkish comments made by key central bank officials. Sterling added to gains made after Bank of England Governor Mark Carney said on Wednesday that the central bank is likely to need to raise interest rates as the British economy comes closer to operating at full capacity. Meanwhile, European Central Bank President Mario Draghi sparked the euro's rally on Tuesday, when he hinted that the ECB could trim its stimulus this year. The Federal Reserve hiked interest rates earlier this month and left the door open for further increases later in the year, though a batch of mixed economic data recently has had investors wondering whether the Fed would be able to stay on its planned tightening path. The buck came under additional pressure following a delay of the healthcare bill vote by the U.S. Senate earlier in the week. Market participants are concerned that the Trump administration will find it hard to follow through with tax cuts and fiscal stimulus steps, without first getting the healthcare bill passed. On the data front, traders will also keep an eye out on a final reading of U.S. first-quarter economic growth due later in the global day for further evidence on the health of the world's biggest economy. The data is expected to show that the economy expanded at a 1.2% annual rate in the first three months of 2017, unchanged from a preliminary estimate.
  • Oil prices rose to a two-week high in European trade on Thursday, extending gains into a sixth session after U.S. government data revealed the biggest weekly decline in domestic crude production in almost a year. Crude prices posted sharp gains on Wednesday, with the commodity logging its fifth wining session in a row. Data from the U.S. Energy Information Administration showed that total domestic crude production fell by 100,000 barrels a day to 9.25 million barrels a day for the week ended June 23. That was the biggest decline in weekly output since July 2016. There was additional support stemming from a decline in U.S. gasoline inventories, which more than offset an unexpected rise in crude supplies. Oil prices have been under pressure in recent weeks as concern over rising U.S. shale output canceled out production cuts by OPEC and non-OPEC members. Last month, OPEC and some non-OPEC producers extended a deal to cut 1.8 million barrels per day in supply until March 2018. The cartel will not rush into making a further cut in oil output or end some countries' exemptions to output limits, OPEC delegates said earlier this week, although a meeting in Russia next month is likely to consider further steps to support the market. Natural gas futures for August delivery dipped 0.3 cents to $3.091 per million British thermal units, as traders looked ahead to weekly storage data due later in the global day.

 

 
Intraday RESISTANCE LEVELS
29th June 2017 R1 R2 R3
GOLD-XAU 1254-1,260 1,270 1,278-1,286
Silver-XAG 16.95-17. 35 17.70 18.05
Crude Oil 45.22-46.10 46.90 47.70
EURO/USD 1.1420-1.1465 1.1540 1.1620
GBP/USD 1.2990-1.3100 1.3156 1.3200
USD/JPY 113.00-113.95 114.40 115.00

Intraday SUPPORTS LEVELS
29th June 2017 S1 S2 S3
GOLD-XAU 1,246-1,241N 1,231 1,224
Silver-XAG 16.80-16.40 16.00 15.60-15.30
Crude Oil 44.45 42.90 42.30-41.50
EURO/USD 1.1370 1.1290 1.1200-1.1140
GBP/USD 1.2900-1.2845 1.2790 1.2700
USD/JPY 112.10-111.60 111. 04 110.40-110.00

Intra-Day Strategy (29th 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 Wednesday and made its intraday high of 1254.67/oz and intraday low of US$1246.15/oz. Gold up by 0.202% at US$1248.99/oz.

Technicals in Focus:

In daily charts, prices are above 200DMA (1239) 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 oversold territory and giving negative crossover to confirm bearish stance for intraday trade.

Trading Strategy: Neutral

Based on the charts and explanations above; sell below 1254-1286 keeping stop loss closing above 1300 and targeting 1246-1240 and 1231-1224. Buy above 1246-1224 with risk below 1224, targeting 1260-1270 and 1278-1286-1294.

 
Intraday Support Levels
S1     1,246-1,241N
S2     1,231
S3     1,224
Intraday Resistance Levels
R1     1254-1,260
R2     1,270
R3     1,278-1,286

Technical Indicators

Name   Value Action
14DRSI  

47.745

Buy
20-DMA   1260.79 Buy
50-DMA  

1256.99

Buy
100-DMA   1249.12 Buy
200-DMA   1235.88 Buy
STOCH(5,3)   59.533 Buy
MACD(12,26,9)   -2.176 Sell

Silver - XAG

AAFX TRADING

Silver closed up Wednesday on made its intraday high of US$16.84/oz and intraday low of US$16.63/oz. Silver settled by up by 0.901% at US$16.78/oz.

Technicals in Focus:

On daily charts, silver is sustaining below 100DMA (17.47), 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 16.80-15.30 targeting 16.95-17.35 and 18.05-18.30; stop breakage below 15.30. Sell below 16.90-18.30 with stop loss above 18.30; targeting 16.80-16.40 and 16.10-15.65-15.30.

 
Intraday  Support Levels
S1     16.80-16.40
S2     16.00
S3     15.60-15.30

Intraday  Resistance Levels
R1     16.95-17. 35
R2     17.70
R3     18.05

TECHNICAL INDICATORS
Name   Value Action
14DRSI   49.722 Buy
20-DMA   16.92 Buy
50-DMA   16.93 Sell
100-DMA   17.40 Sell
200-DMA   17.34 Sell
STOCH(5,3)   88.428 Buy
MACD(12,26,9)   -0.121 Buy

Oil - WTI

AAFX TRADING

Crude Oil on Wednesday made an intra‐day high of US$44.88/bl and made an intraday low of US$43.65/bbl and settled up by 0.765% at US$44.86/bbl on session close.

Technicals in Focus:

On daily charts, oil is sustaining below its 200DMA i.e. 49.77 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 neutral region and giving positive crossover for confirmation of bullish 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 44.45-47.00 with stop loss at 47.00; targeting 42.90-42.30-41.50 and 40.90-40.00. Buy above 42.90-40.90 with risk daily closing below 40.90 and targeting 44.45-45.22 and 46.10-47.00.

 
Intraday Support Levels
S1     44.45
S2     42.90
S3     42.30-41.50

Intraday Resistance Levels
R1     45.22-46.10
R2     46.90
R3     47.70

TECHNICAL INDICATORS
Name   Value Action
14DRSI   45.248 Sell
20-DMA   49.39 Sell
50-DMA   47.26 Sell
100-DMA   49.39 Sell
200-DMA   49.70 Sell
STOCH(5,3)   45.248 Buy
MACD(12,26,9)   -1.148 Sell

EUR/USD

AAFX TRADING

EUR/USD on Wednesday made an intraday low of US$1.1290/EUR and made an intraday high of US$1.1389/EUR and settled the day up by 0.344% at US$1.1376/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 buy crossovers to signal for bullish 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 1.1420-1.1620 targeting 1.1370-1.1290-1.1200 and 1.1140-1.1100 with stop-loss at daily closing above 1.1100. Buy above 1.1420-1.1620 with risk below 1.1100 targeting 1.1420-1.1465 and 1.1540-1.1620.

 
Intraday Support Levels
S1     1.1370
S2     1.1290
S3     1.1200-1.1140

Intraday  Resistance Levels
R1     1.1420-1.1465
R2     1.1540
R3     1.1620

TECHNICAL INDICATORS
Name   Value Action
14DRSI   70.445 Buy
20-DMA   1.1227 Buy
50-DMA   1.0878 Buy
100-DMA   1.0878 Buy
200-DMA   1.0823 Buy
STOCH(5,3)   95.671 Buy
MACD(12,26,9)   0.0057 Buy

GBP/USD

AAFX TRADING

GBP/USD on Wednesday made an intra‐day low of US$1.2792/GBP and made an intraday high of US$1.2971/GBP and settled the day up by 0.874% at US$1.2925/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 1.2990-1.3200 with targets at 1.2900-1.2845 and 1.2790-1.2700-1.2650, breakage above 1.3200 look for further upside with 1.3250 as targets. Buy above 1.2900-1.2700 with stop loss closing below 1.2570 targeting 1.2845-1.2900 and 1.2990-1.3050.

 
Intraday Support Levels
S1     1.2900-1.2845
S2     1.2790
S3     1.2700

Intraday Resistance Levels
R1     1.2990-1.3100
R2     1.3156
R3     1.3200

TECHNICAL INDICATORS
Name   Value Action
14DRSI  

62.947

Buy
20-DMA   1.2796 Buy
50-DMA   1.2862 Buy
100-DMA   1.2648 Buy
200-DMA   1.2545 Buy
STOCH(5,3)   89.016 Buy
MACD(12,26,9)   -0.0012 Sell

USD/JPY

AAFX TRADING

USD/JPY on Wednesday made intra‐day low of JPY111.82/USD and made an intraday high of JPY112.41/USD and settled the day up by 0.0534% at JPY112.27/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 buy as it has given positive crossover to confirm bullish stance.

Trading Strategy: Neutral to Buy

Long positions above 112.10-109.50 with targets of 113.00-113.95 and 114.40-115.00 with stop below 109.50. Sell below 113.00-115.00 with risk above 115.00 targeting 112.10-111.60 and 111.05-110.40- 110.00.

 
Intraday Support Levels
S1     112.10-111.60
S2     111. 04
S3     110.40-110.00

INTRADAY RESISTANCE LEVELS
R1     113.00-113.95
R2     114.40
R3     115.00

TECHNICAL INDICATORS
Name   Value Action
14DRSI   61.478 Buy
20-DMA   110.87 Sell
50-DMA   111.47 Buy
100-DMA   111.79 Sell
200-DMA   111.11 Buy
STOCH(9,6)   80.974 Sell
MACD(12,26,9)   0.197 Sell

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