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Daily Market Lookup

  • Chinese shares climbed on Monday after a week-long break as a disappointing survey on the country’s service sector did little to dent optimism on global growth, while political uncertainty caused turbulence for the Turkish and British currencies. Liquidity was lacking with Japan and South Korea on holiday and a partial holiday in the United States. where stocks will be open but bonds will be closed. That helped offset a fall in the Caixin index of service sector activity to a 21-month trough of 50.6 in September, a contrast to healthier numbers in manufacturing. Spreadbetters also pointed to opening gains for most major European bourses. Australian stocks still managed to put on 0.5 percent, while Nikkei futures added 0.1 percent even though the cash market was shut. Annual growth in average hourly earnings accelerated to a relatively rapid 2.9 percent in September, outweighing a 33,000 drop in nonfarm payrolls. The pick-up in wages boosted already high expectations that the U.S. central bank will raise rates at its December meeting, and that further hikes are likely in 2018. Minutes of the Federal Reserve’s last meeting are due on Wednesday and may well show enough support for a move by year-end. A host of Fed speeches are also due this week. The pound had popped higher on reports British Prime Minister Theresa May could sack Foreign Secretary Boris Johnson as she tries to reassert her authority after a series of political disasters. Sterling had been undermined by speculation that May herself could be ousted ahead of crucial Brexit talks between Britain and the EU. The initial spike could not be maintained, however, and the pound soon steadied around $1.3090.
  • The dollar held steady against the yen on Monday, having retreated from 12-week highs set last week, due to renewed focus on geopolitical risks amid concerns that North Korea may be preparing another missile test. North Korea is preparing to test a long-range missile, which it believes can reach the west coast of the United States, a Russian lawmaker who had returned from a visit to Pyongyang was quoted by Russia’s RIA news agency as saying on Friday. The renewed focus on geopolitical tensions helped lend support to the safe haven yen, and helped pull the dollar down from its post-U.S. jobs data highs. On Friday, the dollar was already in retreat due to profit-taking, when the North Korea-related headlines reached the market, exacerbating the greenback’s drop, said Stephen Innes, head of trading in Asia-Pacific for Oanda in Singapore. Since Japan is the world’s largest net creditor nation, traders assume Japanese repatriation from foreign countries will eclipse foreign investors’ selling of Japanese assets during times of heightened economic uncertainty. This means the yen has continued to behave as a safe-haven currency despite Japan’s geographical proximity to North Korea. The wage data from the U.S. September labor market report was seen as a sign of potentially improving inflation and gave the dollar a lift, as it bolstered expectations for the Federal Reserve to raise interest rates again in December.
  • Oil prices edged up on Monday, after a 2 percent slide on Friday, on expectations that Saudi Arabia would continue to restrain its output in order to support prices, and as the amount of rigs drilling for new oil in the United States dipped. Oil ports, producers and refiners in Louisiana, Mississippi and Alabama, which shut facilities ahead of Hurricane Nate, were planning to reopen on Monday as the storm moved inland, away from most energy infrastructure on the U.S. Gulf Coast. Oil tumbled by around 2 percent on Friday, with WTI dipping back below $50 per barrel, as concerns of overproduction re-surfaced. But analysts said on Monday that a Saudi Arabian commitment to support the market by restraining output would prevent crude from falling further. State-owned oil giant Saudi Aramco is planning to float around 5 percent of the firm in an initial public offering next year. A reported cut in the number of U.S. oil rigs drilling for new production provided some price support. The oil rig count fell by two to 748 in the week to Oct 6, General Electric Co’s Baker Hughes energy services firm said in its closely followed report on Friday. Trading activity was low on Monday due to the Columbus Day federal holiday in the United States though markets are open. As a sign of the more positive sentiment in the market, hedge funds and money managers raised their bullish bets on U.S. crude futures for the third week in a row, the U.S. Commodity Futures Trading Commission reported on Friday. The speculator group raised its combined futures and options position in WTI on the NYMEX and ICE markets by 3,211 contracts to 288,766 in the week to Oct. 3, its highest since mid-August, the data showed.

 

 
Intraday RESISTANCE LEVELS
9th October 2017 R1 R2 R3
GOLD-XAU 1,288 1,294-1,300 1,321
Silver-XAG 16.70-17.00 17.50 18.00-18.35
Crude Oil 50.10-51.00 52.00 52.50-53.00
EURO/USD 1.1770 1.1825-1.1875 1.1925
GBP/USD 1.3150 1.3200 1.3260-1.3300
USD/JPY 113.00 113.60-114.00 114.50

Intraday SUPPORTS LEVELS
9th October 2017 S1 S2 S3
GOLD-XAU 1,279-1,273 1,266 1,252-1,243
Silver-XAG 16.35-16.00 15.60 15.30
Crude Oil 49.00 46.50 46.50
EURO/USD 1.1700 1.1660-1.1610 1.1550
GBP/USD 1.3100-1.3015 1.2935 1.2840-1.2770
USD/JPY 112.30 111.90 111.50-111.10

Intra-Day Strategy (9th October 2017)
GOLD-XAU Neutral
Silver-XAG Neutral
Crude Oil Neutral
EUR/USD Neutral to Sell
GBP/USD Neutral to Sell
USD/JPY Neutral to Sell

Gold – XAU

AAFX TRADING

Gold on Friday made its intraday high of US$1276.46/oz and low of US$1260.47/oz. Gold was down by 0.664% at US$1276.27/oz.

Technicals in Focus:

In daily charts, prices are above 50DMA (1267) and breakage below will call for 1234-1224. MACD is below zero line and histograms are increasing trend and it will bring upward stance in the upcoming sessions. RSI is in overbought region and more upside is expected before it gets stretched. Stochastic Oscillator is in neutral territory and giving positive crossover to confirm bearish stance for intraday trade.

Trading Strategy: Neutral

Based on the charts and explanations above; sell below 1288-1320 keeping stop loss closing above 1320 and targeting 1279-1273 and 1263-1253-1243. Buy above 1279-1243 with risk below 1243, targeting 1288-1294 and 1300-1311.

 
Intraday Support Levels
S1     1,279-1,273
S2     1,266
S3     1,252-1,243
Intraday Resistance Levels
R1     1,288
R2     1,294-1,300
R3     1,321

Technical Indicators

Name   Value Action
14DRSI  

45.572

Buy
20-DMA   1295.33 Sell
50-DMA  

1295.99

Sell
100-DMA   1273.29 Buy
200-DMA   1252.57 Buy
STOCH(5,3)   57.913 Buy
MACD(12,26,9)   -8.260 Buy

Silver - XAG

AAFX TRADING

Silver on Friday made its intraday high of US$16.84/oz and low of US$16.31/oz. Silver settled up by 1.44% at US$16.80/oz.

Technicals in Focus:

On daily charts, silver is sustaining below 200DMA (17.10), 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 oversold 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 16.35-15.00 targeting 16.70-17.00-17.30 and 17.70-18.00; stop breakage below 15.00. Sell below 16.70 -18.35 with stop loss above 18.50; targeting 16.80-16.50 and 16.00-15.60.

 
Intraday  Support Levels
S1     16.35-16.00
S2     15.60
S3     15.30

Intraday  Resistance Levels
R1     16.70-17.00
R2     17.50
R3     18.00-18.35

TECHNICAL INDICATORS
Name   Value Action
14DRSI   48.609 Buy
20-DMA   17.04 Sell
50-DMA   17.10 Sell
100-DMA   16.88 Sell
200-DMA   17.13 Sell
STOCH(5,3)   48.636 Buy
MACD(12,26,9)   -0.159 Buy

Oil - WTI

AAFX TRADING

Crude Oil on Friday made an intra‐day high of US$50.80/bbl, intraday low of US$49.08/bbl and settled down by 3.05% to close at US$49.20/bbl.

Technicals in Focus:

On daily charts, oil is sustaining below its 200DMA i.e. 49.60 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 overbought 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 50.10-53.00 with stop loss at 53.00; targeting and 49.00- 47.80 and 47.05-46.50. Buy above 49.00-46.50 with risk daily closing below 46.50 and targeting 50.10-51.00 and 52.00-52.50-53.00.

 
Intraday Support Levels
S1     49.00
S2     46.50
S3     46.50

Intraday Resistance Levels
R1     50.10-51.00
R2     52.00
R3     52.50-53.00

TECHNICAL INDICATORS
Name   Value Action
14DRSI   47.057 Sell
20-DMA   50.46 Buy
50-DMA   49.03 Buy
100-DMA   47.78 Buy
200-DMA   49.50 Sell
STOCH(5,3)   21.958 Sell
MACD(12,26,9)   0.360 Sell

EUR/USD

AAFX TRADING

EUR/USD on Friday made an intraday low of US$1.1668/EUR, high of US$1.1738/EUR and settled the day up by 0.213% to close at US$1.1734/EUR.

Technicals in Focus:

On daily charts, prices are sustaining above 20DMA (1.1937), 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 neutral territory and giving negative 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 1.1770-1.1925 targeting 1.1700-1.1660-1.1610 and 1.1555-1.1500 with stop-loss at daily closing above 1.1925. Buy above 1.1700-1.1550 with risk below 1.1500 targeting 1.1770-1.1825 and 1.1875-1.1930.

 
Intraday Support Levels
S1     1.1700
S2     1.1660-1.1610
S3     1.1550

Intraday  Resistance Levels
R1     1.1770
R2     1.1825-1.1875
R3     1.1925

TECHNICAL INDICATORS
Name   Value Action
14DRSI   42.197 Buy
20-DMA   1.1841 Buy
50-DMA   1.1844 Buy
100-DMA   1.1599 Buy
200-DMA   1.1160 Buy
STOCH(5,3)   36.613 Sell
MACD(12,26,9)   -0.0036 Buy

GBP/USD

AAFX TRADING

GBP/USD on Friday made an intra‐day low of US$1.3026/GBP, high of US$1.3120/GBP and settled the day by down by 0.396% to close at US$1.3065/GBP.

Technicals in Focus:

On daily charts, prices are sustaining above 20DMA (1.3306) 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 1.3150-1.3300 with targets at 1.3100-1.3020-1.2935 and 1.2840-1.2770. Buy above 1.3100-1.2770 with stop loss closing below 1.2750 targeting 1.3150-1.3200 and 1.3260-1.3300.

 
Intraday Support Levels
S1     1.3100-1.3015
S2     1.2935
S3     1.2840-1.2770

Intraday Resistance Levels
R1     1.3150
R2     1.3200
R3     1.3260-1.3300

TECHNICAL INDICATORS
Name   Value Action
14DRSI  

41.665

Buy
20-DMA   1.3361 Buy
50-DMA   1.3132 Buy
100-DMA   1.3016 Buy
200-DMA   1.2772 Buy
STOCH(5,3)   13.670 Sell
MACD(12,26,9)   0.0023 Buy

USD/JPY

AAFX TRADING

USD/JPY on Friday made intra‐day low of JPY112.59/USD and made an intraday high of JPY113.54/USD and settled the day down by 0.1684% at JPY112.61/USD.

Technicals in Focus:

In daily charts, JPY is sustaining above 200DMA (112.15), 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 Sell

Sell below 113.00-114.50 with risk above 114.50 targeting 112.80-112.30 and 111.50-111.0-110.35. Long positions above 112.80-111.10 with targets of 113.60-114.00 and 114.50-115.00 with stop below 111.00.

 
Intraday Support Levels
S1     112.30
S2     111.90
S3     111.50-111.10

INTRADAY RESISTANCE LEVELS
R1     113.00
R2     113.60-114.00
R3     114.50

TECHNICAL INDICATORS
Name   Value Action
14DRSI   60.846 Buy
20-DMA   111.96 Buy
50-DMA   110.57 Buy
100-DMA   111.08 Buy
200-DMA   111.89 Sell
STOCH(9,6)   37.158 Buy
MACD(12,26,9)   0.672 Sell

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