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  • China will take action to defend its interests if the United States damages trade ties, the Ministry of Commerce said on Tuesday, after U.S. President Donald Trump authorized an inquiry into China's alleged theft of intellectual property. Trump's move, the first direct trade measure by his administration against China, comes at a time of heightened tension over North Korea's nuclear ambitions, though it is unlikely to prompt near-term change in commercial ties. U.S. Trade Representative Robert Lighthizer will have a year to look into whether to launch a formal investigation of China's policies on intellectual property, which the White House and U.S. industry groups say are harming U.S. businesses and jobs. The United States should respect objective facts, act prudently, abide by its World Trade Organization pledges, and not destroy principles of multilateralism, an unidentified spokesman of China's Ministry of Commerce said in a statement. China was continuously strengthening its administrative and judicial protections for intellectual property, the ministry added. China's policy of forcing foreign companies to turn over technology to Chinese joint venture partners and failure to crack down on intellectual property theft have been longstanding problems for several U.S. administrations Trump administration officials have estimated that theft of intellectual property by China could be worth as much as $600 billion. Experts on China trade policy said the long lead time could allow Beijing to discuss some of the issues raised by Washington without being seen to cave to pressure under the threat of reprisals. China repeatedly rebuffed attempts by previous U.S. administrations to take action on its IP practices, and has insisted it rigorously protects intellectual property. U.S. President Donald Trump responds to a reporter's question after signing a memorandum directing the U.S. Trade Representative to complete a review of trade issues with China at the White House in Washington, U.S. August 14, 2017. Trump has suggested he would be more amenable to going easy on China over trade if it were more aggressive in reining in North Korea. China has said the issues of trade with the United States should not be linked to the North Korea problem.
  • Gold prices dipped in Assa on Tuesday as North Korea appeared to back away from threats to fire missiles at or near U.S. territory Guam and the dollar made a mild recovery from recent weakness. Overnight, gold prices retreated from two-month highs on Monday, as risk appetite returned, after tensions eased between the U.S.-North Korea, following comments from U.S. officials downplaying the prospect of war on the Korean peninsula. Gold prices eased from two-month highs, as investors cheered comments from U.S. Defense Secretary Jim Mattis and Secretary of State Rex Tillerson downplaying the risk of imminent war on the Korean peninsula. Losses in the yellow metal, however, were limited as sentiment on tighter monetary policy remained subdued, following data on Friday showing the slowdown in inflation continued in July The minutes from the Federal Reserve’s July policy meeting due Wednesday, at which the central bank left its benchmark rate unchanged could offer further insight into the prospect of additional monetary tightening later this year as well as the central bank’s plan to reduce its $4.5tn balance sheet. Gold is sensitive to moves in U.S. rates, which lift the opportunity cost of holding non-yielding assets such as bullion.
  • Oil prices steadied on Tuesday after sharp falls the session before to the lowest in about three weeks as a stronger U.S. dollar and a drop in Chinese refining runs hit the market. U.S. A stronger dollar tends to limit the demand for oil for buyers paying in other currencies. Both Brent and WTI had reached two-month highs on Aug. 10. Chinese oil refineries operated in July at their lowest daily rates since September 2016, official data showed on Monday, to ease brimming inventories as state-owned oil giants faced off independents in a retail petrol price war. Analysts said the drop was steeper than expected, exacerbating concerns that a glut of refined fuel products could weaken Chinese demand for oil. The dollar firmed on Tuesday after North Korea's leader signaled that he would delay plans to fire a missile near Guam, further easing tensions and prompting investors to move back into riskier assets. The weekly U.S. crude inventory report from the industry group American Petroleum Institute (API) is due out later on Tuesday. Official U.S. government statistics will be released on Wednesday. Efforts by the Organization of the Petroleum Exporting Countries and other oil producers to limit output have helped lift Brent past $50 a barrel, but concerns remain that these efforts could be undermined by producers in the U.S. and other countries. U.S. shale oil production is expected to grow for its ninth consecutive month in September to 6.15 mn barrels per day, the U.S. Energy Information Administration said on Monday.

 

 
Intraday RESISTANCE LEVELS
15th August 2017 R1 R2 R3
GOLD-XAU 1,279 1,289-1,296 1,304
Silver-XAG 17.35-17.70 18.35 18.60
Crude Oil 48.00-48.50 49.20 49.80
EURO/USD 1.1770-1.1800 1.1840 1.1900
GBP/USD 1.3090 1.3090 1.3140-1.3200
USD/JPY 110.90-111.60 112.30 113.00

Intraday SUPPORTS LEVELS
15th August 2017 S1 S2 S3
GOLD-XAU 1,270-1,260 1,254 1,246
Silver-XAG 16.50 16.00 15.60-15.30
Crude Oil 47.50 47.00-46.10 45.20
EURO/USD 1.1720 1.1680-1.1610 1.1500
GBP/USD 1.2900-1.2825 1.2760 1.2700
USD/JPY 110.00-109.50 108.50 108.50

Intra-Day Strategy (15th August 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 Monday on and made its intraday high of 1290.32/oz and intraday low of US$1278.50/oz. Gold down by 0.671% at US$1281.66/oz.

Technicals in Focus:

In daily charts, prices are above 200DMA (1230) 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 overbought territory and giving positive crossover to confirm bullish stance for intraday trade.

Trading Strategy: Neutral

Based on the charts and explanations above; sell below 1279-1304 keeping stop loss closing above 1311 and targeting 1270-1264 and 1254-1249. Buy above 1270-1230 with risk below 1230, targeting 1279-1288 and 1296-1305.

 
Intraday Support Levels
S1     1,270-1,260
S2     1,254
S3     1,246
Intraday Resistance Levels
R1     1,279
R2     1,289-1,296
R3     1,304

Technical Indicators

Name   Value Action
14DRSI  

58.124

Buy
20-DMA   1264.59 Buy
50-DMA  

1251.41

Buy
100-DMA   1254.60 Buy
200-DMA   1229.90 Buy
STOCH(5,3)   72.130 Buy
MACD(12,26,9)   9.506 Buy

Silver - XAG

AAFX TRADING

Silver closed up Monday on made its intraday high of US$17.20/oz and intraday low of US$16.92/oz. Silver settled down by 0.292% at US$17.05/oz.

Technicals in Focus:

On daily charts, silver is sustaining below 100DMA (17.02), 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 16.50-14.90 targeting 17.35-17.70 and 18.35-18.60; stop breakage below 15.00. Sell below 17.35-18.60 with stop loss above 18.60; targeting 16.50-16.00-15.60 and 15.30-14.90.

 
Intraday  Support Levels
S1     16.50
S2     16.00
S3     15.60-15.30

Intraday  Resistance Levels
R1     17.35-17.70
R2     18.35
R3     18.60

TECHNICAL INDICATORS
Name   Value Action
14DRSI   56.183 Buy
20-DMA   16.62 Buy
50-DMA   16.51 Buy
100-DMA   16.96 Buy
200-DMA   17.04 Buy
STOCH(5,3)   76.534 Sell
MACD(12,26,9)   0.125 Buy

Oil - WTI

AAFX TRADING

Crude Oil on Monday made an intra‐day high of US48.96/bbl, intraday low of US$47.42/bbl and settled down by 2.625% to close at US$47.48/bbl.

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 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 48.00-50.00 with stop loss at 50.00; targeting 48.00-47.50 and 47.00-46.10. Buy above 47.50-45.20 with risk daily closing below 45.00 and targeting 48.00-48.50 and 49.20-49.80.

 
Intraday Support Levels
S1     47.50
S2     47.00-46.10
S3     45.20

Intraday Resistance Levels
R1     48.00-48.50
R2     49.20
R3     49.80

TECHNICAL INDICATORS
Name   Value Action
14DRSI   47.934 Sell
20-DMA   48.48 Sell
50-DMA   46.46 Sell
100-DMA   48.05 Sell
200-DMA   49.53 Sell
STOCH(5,3)   13.222 Sell
MACD(12,26,9)   0.751 Sell

EUR/USD

AAFX TRADING

EUR/USD on Monday made an intraday low of US$1.1769/EUR, high of US$1.1837/EUR and settled the day down by 0.346% to close at US$1.1779/EUR.

Technicals in Focus:

On daily charts, prices are sustaining above 20DMA (1.1732), which become immediate support level, break below will target 1.1700.-1.1600. MACD is below zero line but histograms are increasing mode which will bring bullish view. Stochastic is in overbought territory and giving positive 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 1.1770-1.1900 targeting 1.1720-1.1680 and 1.1620-1.1500 with stop-loss at daily closing above 1.1900. Buy above 1.1720-1.1500 with risk below 1.1500 targeting 1.1770-1.1840-1.1900 and 1.1980-1.2080

 
Intraday Support Levels
S1     1.1720
S2     1.1680-1.1610
S3     1.1500

Intraday  Resistance Levels
R1     1.1770-1.1800
R2     1.1840
R3     1.1900

TECHNICAL INDICATORS
Name   Value Action
14DRSI   57.640 Buy
20-DMA   1.1740 Buy
50-DMA   1.1480 Buy
100-DMA   1.1197 Buy
200-DMA   1.093131.1197 Buy
STOCH(5,3)   60.577 Buy
MACD(12,26,9)   0.0088 Buy

GBP/USD

AAFX TRADING

GBP/USD on Monday made an intra‐day low of US$1.2955/GBP, high of US$1.3021/GBP and settled the day by down by 0.284% to close at US$1.2963/GBP.

Technicals in Focus:

On daily charts, prices are sustaining above 200DMA (1.2570) 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 negative crossover to confirm bearish 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 1.2960-1.3200 with targets at 1.2900-1.2825 and 1.2760-1.2700, breakage above 1.3200 look for further upside with 1.3300 as targets. Buy above 1.2900 -1.3300 with stop loss closing below 1.3300 targeting 1.2960-1.3000 and 1.3090-1.3140-1.3220.

 
Intraday Support Levels
S1     1.2900-1.2825
S2     1.2760
S3     1.2700

Intraday Resistance Levels
R1     1.3090
R2     1.3090
R3     1.3140-1.3200

TECHNICAL INDICATORS
Name   Value Action
14DRSI  

44.652

Buy
20-DMA   1.3055 Buy
50-DMA   1.2935 Buy
100-DMA   1.2858 Buy
200-DMA   1.2637 Buy
STOCH(5,3)   34.910 Sell
MACD(12,26,9)   0.00063 Buy

USD/JPY

AAFX TRADING

USD/JPY Monday to made intra‐day low of JPY109.03/USD and made an intraday high of JPY109.79/USD and settled the day up by 0.439% at JPY109.62/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 110.00-108.05 with targets of 110.90-111.60 and 112.00-113.00 with stop below 108.00. Sell below 110.90-113.00 with risk above 113.00 targeting 110.00-109.5-109.10 and 108.50-108.05.

 
Intraday Support Levels
S1     110.00-109.50
S2     108.50
S3     108.50

INTRADAY RESISTANCE LEVELS
R1     110.90-111.60
R2     112.30
R3     113.00

TECHNICAL INDICATORS
Name   Value Action
14DRSI   45.031 Buy
20-DMA   110.61 Sell
50-DMA   111.40 Sell
100-DMA   111.28 Sell
200-DMA   112.49 Sell
STOCH(9,6)   48.655 Sell
MACD(12,26,9)   -0.592 Sell

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