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  • Asian shares slipped on Friday on uncertainty about U.S. tax reforms after Senate Republicans unveiled a plan that differed from the House of Representatives’ version in several key areas, including a delay in the timing of a corporate tax cut. U.S. Republican Senators said they want to slash the corporate tax rate in 2019, later than the House’s proposed schedule of 2018, complicating a push for the biggest overhaul of U.S. tax law since the 1980s. The House was set to vote on its measure next week but the Senate’s timetable was less clear, with a formal bill yet to be drafted in that chamber, where Republicans have a much smaller majority and a narrower path to winning approval for any legislation, let alone one as contentious as a tax package. Others said a correction was due after a strong rally worldwide, though fundamentally the prospects of a solid global economic growth are expected to support world shares, market players said. The European Commission forecast on Thursday the euro zone economy will grow at its fastest pace in a decade this year. Dollar licked its wounds on Friday, on track for weekly losses after dropping on disappointment with a tax bill put forth by U.S. Senate Republicans that would delay expected corporate tax cuts. The Senate Republicans' bill to rewrite the tax code differed from their House counterparts' plan. Like the House version, the Senate's proposal would cut the corporate tax rate to 20 percent from 35 percent, but the Senate plan would delay implementation until 2019. Both plans call for a tax on $2.6 trillion in foreign profits held offshore by U.S. multinationals. The Senate wants that tax to be 12 percent for cash and liquid assets, and 5 percent for non-liquid assets. The House amended its bill on Thursday, going to 14 percent and 7 percent, respectively. Both bills would add $1.5 trillion over 10 years to the U.S. budget deficit and national debt, which in the past would likely have faced criticism from Republicans.
  • Gold dipped in Asia on Friday, but remained well supported on Middle East tensions between Iran and Saudi Arabia and await a summit in Vietnam among Asia-Pacific nations. Overnight, gold prices rose to three-week highs on Thursday amid a slump in the dollar on fears that the Senate would delay corporate tax cuts until 2019. Gold prices added to gains from Wednesday’s session after the dollar fell on reports that Senate Republicans on Thursday will propose delaying a cut in the corporate tax rate from 35% to 20% until 2019. The news of a possible delay to corporate tax cuts halted recent risk-on sentiment, fueling a flight-to-safety as traders appeared to unwind their bullish bets on riskier assets which followed on expectations that President Trump’s tax-reform plans would be enacted before year-end. Gold prices are sensitive to moves lower in the U.S. dollar – A lower dollar makes gold cheaper for holders of foreign currency, thus, increases demand. Also supporting demand for safe-haven gold was ongoing political unrest in the Middle East after Saudi Arabia advised citizens not to travel to Lebanon and urged the international community to impose fresh sanctions on Iran.
  • Oil prices held firm, on course to log their fifth straight week of gains, on hopes of supply cuts by major exporters as well as continuing concern about political developments in Saudi Arabia. A spokesman for Saudi Arabia’s energy ministry said the kingdom plans to cut crude exports by 120,000 barrels per day in December from November. Concerns about the stability of Saudi Arabia, sparked after the purge of 11 princes and arrests of dozen other influential figures since last week, are intensifying. Sources told Reuters Lebanon believes the country’s former prime minister, Saad al-Hariri, is being held in Saudi Arabia, although Saudi Arabia denied reports he is under house arrest. Saudi Arabia accused Beirut earlier this week of declaring war against the kingdom, blaming what it describes as aggression by Hezbollah, Lebanese Shi‘ite group backed by its arch-rival Iran. Crude oil prices fell in Asia on Friday ahead of U.S. weekly rig count data that showed a dip in the previous week, but also with a sharp eye on the Middle East as tensions between Iran and Saudi Arabia, key OPEC members, simmer. Overnight, crude oil prices settled higher on Thursday amid ongoing unrest in the Middle East while Saudi Arabia’s plan to slash crude exports lifted sentiment. Saudi Arabia plans to cut its crude exports by 120,000 barrels per day in December compared with November, slashing allocations to all regions, Reuters reported Thursday, citing a energy ministry spokesman. The reports of Saudi’s plan to reduce exports came as investor fears grew of instability in the Middle East after Saudi Arabia warned its citizens not to travel to Lebanon and urged the international community to impose fresh sanctions on Iran. The escalating tensions between Saudi Arabia and Iran come after Saudi Arabia’s crown prince Mohammed bin Salman accused Iran of “direct military aggression” by supplying Houthi rebels in Yemen with missiles, one of which was fired towards the Riyadh on Saturday.

 

 
Intraday RESISTANCE LEVELS
10th November 2017 R1 R2 R3
GOLD-XAU 1,290-1,300 1,311 1,320
Silver-XAG 17.20 17.50-18.00 18.60
Crude Oil 57.00 57.75 58.85-59.50
EURO/USD 1.1660-1.1700 1.1750 1.1800-1.1850
GBP/USD 1.3150 1.3260-1.3300 1.3360
USD/JPY 113.60-114.00 114.50 115.00-115.50

Intraday SUPPORTS LEVELS
10th November 2017 S1 S2 S3
GOLD-XAU 1,281-1,274 1,266 1,260-1,252
Silver-XAG 16.70 16.35-16.00 15.60
Crude Oil 56.60 56.00 55.20-54.60
EURO/USD 1.1610 1.1550 1.1490-1.1400
GBP/USD 1.3100 1.3050 1.3000-1.2950
USD/JPY 113.00-112.30 111.50 110.60

Intra-Day Strategy (10th November 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 Thursday made its intraday high of US$1288.45/oz and low of US$1279.83/oz. Gold was up by 0.315% at US$1284.86/oz.

Technicals in Focus:

In daily charts, prices are below 100DMA (1275) and breakage above will call for 1312-1321. MACD is below zero line and histograms are decreasing trend and it will bring upward stance in the upcoming sessions. RSI is in oversold region and more downside is expected before it gets stretched. Stochastic Oscillator is in neutral territory and giving positive crossover to confirm bullish stance for intraday trade.

Trading Strategy: Neutral

Based on the charts and explanations above; sell below 1290-1320 keeping stop loss closing above 1320 and targeting 1281-1274-1266 and 1260-1251. Buy above 1283-1235 with risk below 1235, targeting 1288-1300 and 1311-1320.

 
Intraday Support Levels
S1     1,281-1,274
S2     1,266
S3     1,260-1,252
Intraday Resistance Levels
R1     1,290-1,300
R2     1,311
R3     1,320

Technical Indicators

Name   Value Action
14DRSI  

51.988

Buy
20-DMA   1279.07 Sell
50-DMA  

1293.98

Sell
100-DMA   1277.69 Sell
200-DMA   1263.10 Buy
STOCH(5,3)   80.443 Buy
MACD(12,26,9)   -2.168 Sell

Silver - XAG

AAFX TRADING

Silver on Thursday made its intraday high of US$17.13/oz and low of US$16.89/oz. Silver settled down by 0.293% at US$16.97/oz.

Technicals in Focus:

On daily charts, silver is sustaining above 200DMA (17.16), breakage below will lead to 16.70-16.35. 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 16.70-15.00 targeting 17.20-17.50-17.70 and 18.00-18.60; stop breakage below 15.00. Sell below 17.20-19.00 with stop loss above 19.00; targeting 16.80-16.50 and 16.00-15.60.

 
Intraday  Support Levels
S1     16.70
S2     16.35-16.00
S3     15.60

Intraday  Resistance Levels
R1     17.20
R2     17.50-18.00
R3     18.60

TECHNICAL INDICATORS
Name   Value Action
14DRSI   50.284 Buy
20-DMA   16.98 Buy
50-DMA   17.13 Buy
100-DMA   16.87 Buy
200-DMA   17.15 Buy
STOCH(5,3)   48.093 Sell
MACD(12,26,9)   -0.0114 Buy

Oil - WTI

AAFX TRADING

Crude Oil on Thursday made an intra‐day high of US$57.51/bbl, intraday low of US$56.67/bbl and settled up by 0.405% to close at US$57.00/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 above zero line and histograms are in increasing mode will bring bearish stance in the upcoming sessions. The Stochastic Oscillator is in overbought 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 57.5-60.50 with stop loss at 60.50; targeting and 56.50-56.00 and 54.60-53.75 Buy above 57.00-54.60 with risk daily closing below 54.60 and targeting 57.75-58.85 and 59.50-60.50.

 
Intraday Support Levels
S1     56.60
S2     56.00
S3     55.20-54.60

Intraday Resistance Levels
R1     57.00
R2     57.75
R3     58.85-59.50

TECHNICAL INDICATORS
Name   Value Action
14DRSI   75.140 Sell
20-DMA   54.11 Buy
50-DMA   51.71 Buy
100-DMA   49.44 Buy
200-DMA   49.58 Buy
STOCH(5,3)   71.472 Sell
MACD(12,26,9)   1.643 Buy

EUR/USD

AAFX TRADING

EUR/USD on Thursday made an intraday low of US$1.1584/EUR, high of US$1.1654/EUR and settled the day up by 0.388% to close at US$1.1640/EUR.

Technicals in Focus:

On daily charts, prices are sustaining below 100DMA (1.1700), which become immediate resistance level, break above will target 1.1750-1.1800. MACD is below zero line but histograms are increasing mode which will bring bullish view. Stochastic is in oversold territory and giving negative crossovers to signal for bearish outlook for intraday. 14D RSI is currently approaching oversold region and giving wards directions to consider buy.

Trading Strategy: Neutral to Sell

Based on the charts and explanations above; sell below 1.1660-1.1850 targeting 1.1590-1.1555 and 1.1490-1.1400 with stop-loss at daily closing above 1.1850. Buy above 1.1590-1.1400 with risk below 1.1400 targeting 1.1660-1.1700-1.1750 and 1.1800-1.1850.

 
Intraday Support Levels
S1     1.1610
S2     1.1550
S3     1.1490-1.1400

Intraday  Resistance Levels
R1     1.1660-1.1700
R2     1.1750
R3     1.1800-1.1850

TECHNICAL INDICATORS
Name   Value Action
14DRSI   43.986 Buy
20-DMA   1.1690 Buy
50-DMA   1.1793 Buy
100-DMA   1.1722 Buy
200-DMA   1.1287 Buy
STOCH(5,3)   58.509 Sell
MACD(12,26,9)   -0.0049 Buy

GBP/USD

AAFX TRADING

GBP/USD on Thursday made an intra‐day low of US$1.3084/GBP, high of US$1.3165/GBP and settled the day down by 0.379% to close at US$1.3143/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 oversold 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 1.3150-1.3360 with targets at 1.3100-1.3050 and 1.3000-1.2950. Buy above 1.3100-1.2950 with stop loss closing below 1.2950 targeting 1.3260-1.3300 and 1.3360-1.3440.

 
Intraday Support Levels
S1     1.3100
S2     1.3050
S3     1.3000-1.2950

Intraday Resistance Levels
R1     1.3150
R2     1.3260-1.3300
R3     1.3360

TECHNICAL INDICATORS
Name   Value Action
14DRSI  

47.271

Buy
20-DMA   1.3173 Sell
50-DMA   1.3243 Sell
100-DMA   1.3105 Buy
200-DMA   1.2869 Buy
STOCH(5,3)   47.290 Sell
MACD(12,26,9)   -0.0024 Buy

USD/JPY

AAFX TRADING

USD/JPY on Thursday made intra‐day low of JPY113.45/USD and made an intraday high of JPY114.06/USD and settled the day down by 0.360% at JPY113.45/USD.

Technicals in Focus:

In daily charts, JPY is sustaining above 200DMA (111.73), which is major support on the daily chart. 14-D RSI is currently in neutral region and direction is difficult to predict on RSI bases MACD is above zero line but histograms are in decreasing mode which might lead to downward movement. The Stochastic Oscillator is approaching oversold territory and signaling to sell as it has given negative crossover to confirm bearish stance.

Trading Strategy: Neutral to Sell

Sell below 113.60-116.20 with risk above 116.20 targeting 113.00-112.30 and 111.50-110.60. Long positions above 113.00-110.60 with targets of 113.60-114.00-114.60 and 115.00-115.60 with stop below 116.00.

 
Intraday Support Levels
S1     113.00-112.30
S2     111.50
S3     110.60

INTRADAY RESISTANCE LEVELS
R1     113.60-114.00
R2     114.50
R3     115.00-115.50

TECHNICAL INDICATORS
Name   Value Action
14DRSI   53.290 Buy
20-DMA   113.47 Buy
50-DMA   112.22 Buy
100-DMA   111.68 Buy
200-DMA   111.73 Buy
STOCH(9,6)   26.192 Sell
MACD(12,26,9)   0.399 Sell

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