AAFX TRADING

Daily Market Lookup

  • The dollar held firm on Wednesday after Wall Street shot to record peaks amid signs of progress on U.S. tax cuts, while bitcoin topped $10,000 on a host of exchanges as the frenzy for cryptocurrencies showed no sign of fading. A Bitcoin and Dollar notes are seen in this illustration picture taken September 27, 2017. Asian share markets were not as jubilant, checked by caution over the latest missile test by North Korea and concerns at recent softness in Chinese shares. The prospects for a U.S. tax cut seemed to improve after Senate Republicans rammed forward their bill in a partisan committee vote that set up a full vote by the Senate as soon as Thursday, although details of the measure remained unsettled. Republican leaders conceded that they have yet to round up the votes needed for passage in the Senate, where they hold a narrow 52-48 majority. Some analysts, however, did warn of the risks of unintended consequences if the package was passed. Fed chair nominee Jerome Powell, in his Senate confirmation hearing on Tuesday, said the case for a December rate hike was coming together, though he dodged comment on the tax proposals. Powell also hinted at a lighter touch for bank regulation, saying current rules were already tough enough. Adding to the good cheer was data showing U.S. consumer confidence surged to a near 17-year high in November, while home prices rose sharply in September, which should underpin consumer spending. An investor looks at an electronic board showing stock information at a brokerage house in Shanghai, China November 24, 2017. The latest surge brought its gains for the year so far to over 950 percent, leaving more than a few observers baffled.
  • Gold prices failed to get a significant boost in Asia on Wednesday after the latest ballistic missile test by North Korea. Overnight, gold prices pared gains on Tuesday as reports suggesting that North Korea fired a ballistic missile failed to raise safe haven demand. North Korea fired a ballistic missile from an area near Pyongyang early on Wednesday, South Korea’s military said, while the Japanese government said it landed in the country’s exclusive economic zone. The Pentagon says initial the assessment of of the North Korea launch was an ICBM and Japan PM Shinzo Abe ordered an emergency meeting of cabinet ministers over the missile launch. Also supporting gold prices were comments from Federal Reserve chair designate Jerome Powell, who testified before Congress on Tuesday. Powell’s comments did little to change the widely held view that the incoming Fed chair will adopt a similar stance to outgoing Fed Chair Janet Yellen on monetary policy. Gold is sensitive to moves in U.S. rates, which lift the opportunity cost of holding non-yielding assets such as bullion.
  • Oil prices fell on Wednesday on doubts OPEC and Russia will agree on extending a crude production cut that the market has already priced in, and after a report of an unexpected rise in U.S. crude oil inventories. Traders said WTI was pulled lower by a report from the API late on Tuesday that showed U.S. crude inventories rose by 1.8 million barrels in the week ended Nov. 24 to 457.3 million barrels. Official U.S. oil inventory data is due later on Wednesday. WTI was also weighed down by the gradual restart on Tuesday of the Keystone pipeline, which supplies Canadian crude to the United States. Oil prices have received a broad lift this year, with Brent up by 40 percent since mid-2017, due to an effort by the OPEC and a group of other producers, led by Russia, to withhold 1.8 million bpd of output. The deal expires in March 2018, but OPEC will meet on Nov. 30 and is expected to discuss ways of extending the cut. While OPEC and Russia are expected to extend their supply cuts for the whole of 2018, they are likely to include an option to review the deal in June, OPEC sources said on Tuesday, after Moscow expressed concerns the market could overheat. Many analysts say an extension is needed to balance oil markets, and also to keep the economies of oil exporting nations afloat. Yet not all analysts agree. Beyond cutting supplies, a healthy global economy has been helping oil markets back into balance after years of oversupply.

 

 
Intraday RESISTANCE LEVELS
29th November 2017 R1 R2 R3
GOLD-XAU 1,300 1,311-1320 1,326
Silver-XAG 17.20 17.50-18.00 18.60
Crude Oil 58.50 59.00-59.60 60.50
EURO/USD 1.1930-1.1990 1.2050 1.2090
GBP/USD 1.3425-1.3500 1.3570 1.3650
USD/JPY 111.50-112.00 113.00 114.00

Intraday SUPPORTS LEVELS
29th November 2017 S1 S2 S3
GOLD-XAU 1,290 1,284 1,274-1,265
Silver-XAG 16.70 16.35-16.00 15.60
Crude Oil 57.70 57.00 56.00-55.40
EURO/USD 1.1850 1.1800-1.1750 1.1700
GBP/USD 1.3360-1.3300 1.3260 1.3200-1.3150
USD/JPY 111.00-110.60 110.00 109.10

Intra-Day Strategy (29th 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 Tuesday made its intraday high of US$1297.33/oz and low of US$1286.62/oz. Gold was down by 0.007% at US$1293.56/oz.

Technicals in Focus:

In daily charts, prices are below 100DMA (1278) 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 1300-1331 keeping stop loss closing above 1320 and targeting 1290-1280-1274 and 1266-1260. Buy above 1284-1250 with risk below 1250, targeting 1300-1311 and 1321-1330.

 
Intraday Support Levels
S1     1,290
S2     1,284
S3     1,274-1,265
Intraday Resistance Levels
R1     1,300
R2     1,311-1320
R3     1,326

Technical Indicators

Name   Value Action
14DRSI  

56.667

Buy
20-DMA   1282.21 Sell
50-DMA  

1283.25

Sell
100-DMA   1284.19 Sell
200-DMA   1266.23 Buy
STOCH(5,3)   74.865 Buy
MACD(12,26,9)   2.500 Sell

Silver - XAG

AAFX TRADING

Silver on Monday made its intraday high of US$17.10/oz and low of US$16.75/oz. Silver settled down by 1.232% at US$16.83/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   50.034 Buy
20-DMA   17.01 Buy
50-DMA   16.97 Buy
100-DMA   16.95 Buy
200-DMA   17.11 Buy
STOCH(5,3)   45.294 Buy
MACD(12,26,9)   -0.013 Buy

Oil - WTI

AAFX TRADING

Crude Oil on Tuesday made an intra‐day high of US$58.97/bbl, intraday low of US$57.41/bbl and settled down by 0.224% to close at US$57.71/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 58.50-60.50 with stop loss at 60.50; targeting and 57.70-57.00-56.00 and 56.50-55.40. Buy above 57.50-54.80 with risk daily closing below 54.80 and targeting 58.50- 59.60 and 60.50-61.20.

 
Intraday Support Levels
S1     57.70
S2     57.00
S3     56.00-55.40

Intraday Resistance Levels
R1     58.50
R2     59.00-59.60
R3     60.50

TECHNICAL INDICATORS
Name   Value Action
14DRSI   62.095 Sell
20-DMA   56.86 Buy
50-DMA   53.77 Buy
100-DMA   50.97 Buy
200-DMA   49.82 Buy
STOCH(5,3)   39.144 Sell
MACD(12,26,9)   1.251 Buy

EUR/USD

AAFX TRADING

EUR/USD on Tuesday made an intraday low of US$1.1826/EUR, high of US$1.1919/EUR and settled the day down by 0.479% to close at US$1.1840/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 overbought territory and giving positive crossovers to signal for bullish 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 1.1930-1.12090 targeting 1.1850-1.1800-1.1750 and 1.1700-1.1660-1.1590 with stop-loss at daily closing above 1.2040. Buy above 1.1850-1.1700 with risk below 1.1700 targeting 1.1930-1.1990 and 1.2050-1.2090.

 
Intraday Support Levels
S1     1.1850
S2     1.1800-1.1750
S3     1.1700

Intraday  Resistance Levels
R1     1.1930-1.1990
R2     1.2050
R3     1.2090

TECHNICAL INDICATORS
Name   Value Action
14DRSI   63.343 Buy
20-DMA   1.1730 Buy
50-DMA   1.1758 Sell
100-DMA   1.1773 Sell
200-DMA   1.1357 Buy
STOCH(5,3)   72.513 Buy
MACD(12,26,9)   -0.0037 Buy

GBP/USD

AAFX TRADING

GBP/USD on Tuesday made an intra‐day low of US$1.3302/GBP, high of US$1.3386/GBP and settled the day up by 0.172% to close at US$1.3338/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 1.3425-1.3570 with targets at 1.3360-1.3300-1.3260 and 1.3200- 1.3100. Buy above 1.3360-1.3150 with stop loss closing below 1.3100 targeting 1.3425-1.3500 and 1.3570-1.3650.

 
Intraday Support Levels
S1     1.3360-1.3300
S2     1.3260
S3     1.3200-1.3150

Intraday Resistance Levels
R1     1.3425-1.3500
R2     1.3570
R3     1.3650

TECHNICAL INDICATORS
Name   Value Action
14DRSI  

63.171

Buy
20-DMA   1.3212 Sell
50-DMA   1.3242 Sell
100-DMA   1.3151 Buy
200-DMA   1.2920 Buy
STOCH(5,3)   76.175 Buy
MACD(12,26,9)   -0.0040 Buy

USD/JPY

AAFX TRADING

USD/JPY on Tuesday made intra‐day low of JPY110.92/USD and made an intraday high of JPY111.63/USD and settled the day up by 0.342% at JPY111.46/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 111.50-114.00 with risk above 114.00 targeting 111.00-110.60 and 110.00-109.10. Long positions above 111.0-109.10 with targets of 111.50-112.00 and 113.00-113.60-114.00 with stop below 116.00.

 
Intraday Support Levels
S1     111.00-110.60
S2     110.00
S3     109.10

INTRADAY RESISTANCE LEVELS
R1     111.50-112.00
R2     113.00
R3     114.00

TECHNICAL INDICATORS
Name   Value Action
14DRSI   35.831 Buy
20-DMA   112.99 Buy
50-DMA   111.61112.80 Buy
100-DMA   111.69111.61 Buy
200-DMA   111.69111.69 Buy
STOCH(9,6)   17.064 Sell
MACD(12,26,9)   0.287 Sell

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