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Daily Market Lookup

    Here are the top five things you need to know in financial markets on Wednesday, April 11:
  • 1. Trump Weighs Military Strike On Syria U.S. President Donald Trump and Western allies are discussing possible military action to punish Syria's President Bashar Assad for a suspected poison gas attack over the weekend on a rebel-held town that long had held out against government forces. Trump on Tuesday canceled a planned trip to Latin America later this week to focus instead on responding to the Syria incident, the White House said. On Monday, he had warned of a quick, forceful response once responsibility for the Syria attack was established.
  • 2. U.S. Stock Futures Point To Lower Open U.S. stock futures pointed to a lower open, as the possibility of an American military strike on Syria gave investors pause. U.S. stocks climbed on Tuesday, with the three major averages all scoring gains of nearly 2%, after China presented a less-aggressive stance in trade tensions with the U.S., easing fears over a full-blown trade war.
  • 3. All Eyes on U.S. Inflation Data The Commerce Department will publish March inflation figures at 8:30AM ET (1230GMT), with traders watching to see if the data will run hotter-than-expected, just as producer prices did the day before. Market analysts expect consumer prices to rise 2.4% on a year-over-year basis, up from 2.2% in February. Core inflation, which excludes food and fuel, is projected to climb 2.1%, a tad faster than the 1.8%-gain recorded in the preceding month. Core prices are viewed by the Federal Reserve as a better gauge of longer-term inflationary pressure because they exclude the volatile food and energy categories. A jump in inflation could be a sign that the Fed would have to raise interest rates more rapidly if it begins to run above its 2% target.
  • 4. Fed Releases FOMC Meeting Minutes Later in the afternoon, the Federal Reserve will release minutes of its most recent policy meeting at 2:00PM ET (1800GMT), which may provide further hints on the pace of future rate hikes this year. The U.S. central bank raised interest rates as widely expected following its meeting on March 21 and stuck to its projection for two more rate hikes this year. Fed Chief Jerome Powell said last week the Fed will likely need to keep raising interest rates this year to keep inflation under control. He added that it was too soon to know if recent trade issues would take a toll on the U.S. economy. Those comments signaled that borrowing costs will continue to climb this year despite the recent market volatility caused by the trade dispute.
  • 5. EIA Weekly Supply Report In Focus Oil traders looked ahead to fresh weekly data on U.S. commercial crude inventories to gauge the strength of demand in the world’s largest oil consumer and how fast output levels will continue to rise. The U.S. Energy Information Administration will release its official weekly oil supplies report at 10:30AM ET (1430GMT), amid expectations for a decline of around 0.2 million barrels. The American Petroleum Institute said late Tuesday that U.S. oil inventories rose by 1.8 million barrels in the week ended April 6. There are often sharp divergences between the API estimates and the official figures from EIA. Oil prices held steady, with New York-traded WTI crude futures inching up 10 cents to $65.51 per barrel, while Brent futures dipped 2 cents to $71.02. While Syria is not a significant oil producer itself, the wider Middle East is the world's most important crude exporter and tension in the region tends to put oil markets on edge. more crude, at almost 11 million bpd.

 

 
Intraday RESISTANCE LEVELS
11th April 2018 R1 R2 R3
GOLD-XAU 1,350 1,357-1,363 1,370
Silver-XAG 16.50-17.00 17.40 17.70-18.20
Crude Oil 66.00-66.50 67.00 68.00
EURO/USD 1.2400-1.2450 1.2510 1.2560
GBP/USD 1.4150 1.4250-1.4300 1.4350
USD/JPY 107.50-108.00 108.70 109.60

Intraday SUPPORTS LEVELS
11th April 2018 S1 S2 S3
GOLD-XAU 1,340-1,331 1,320 1,311-1306
Silver-XAG 16.00-15.80 15.60 15.00
Crude Oil 65.20-64.50 64.00 63.30-62.70
EURO/USD 1.2350-1.2300 1.2250 1.2210-1.2150
GBP/USD 1.4120 1.4070-1.3990 1.3910
USD/JPY 106.70 105.50-104.90 105.50-104.90

Intra-Day Strategy (11th April 2018)
GOLD-XAU Sell on Strength
Silver-XAG Neutral
Crude Oil Neutral
EUR/USD Neutral to Sell
GBP/USD Neutral to Sell
USD/JPY Neutral to Sell

Gold – XAU

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Gold on Tuesday made its intraday high of US$1335.33/oz and low of US$1319.89/oz. Gold was up by 0.167% at US$1333.22/oz.

Technicals in Focus:

In daily charts, prices are above 50DMA (1326) and breakage below will call for 1316-1300. 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 oversold territory and giving positive crossover to confirm bullish stance for intraday trade.

Trading Strategy: Sell on Strength

Based on the charts and explanations above; sell below 1350-1370 keeping stop loss closing above 1370 and targeting 1340-1331-1320 and 1311-1306. Buy above 1340-1306 with risk below 1306, targeting 1350-1357 and 1362-1370.

 
Intraday Support Levels
S1     1,340-1,331
S2     1,320
S3     1,311-1306
Intraday Resistance Levels
R1     1,350
R2     1,357-1,363
R3     1,370

Technical Indicators

Name   Value Action
14DRSI  

57.291

Buy
20-DMA   1333.71 Sell
50-DMA  

1327.94

Buy
100-DMA   1317.57 Buy
200-DMA   1300.50 Buy
STOCH(5,3)   74.075 Buy
MACD(12,26,9)   3.072 Buy

Silver - XAG

AAFX TRADING

Silver on Tuesday made its intraday high of US$16.63/oz and low of US$16.41/oz. Silver settled up by 0.488% at US$16.55/oz.

Technicals in Focus:

On daily charts, silver is sustaining below 200DMA (16.77), breakage above will lead to 17.25-17.70. 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 neutral 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 16.00-15.00 targeting 16.50-17.00-17.75 and 18.20-18.60; stop breakage below 15.00. Sell below 16.50-18.20 with stop loss above 18.20; targeting 16.00-15.60 and 15.00-14.50.

 
Intraday  Support Levels
S1     16.00-15.80
S2     15.60
S3     15.00

Intraday  Resistance Levels
R1     16.50-17.00
R2     17.40
R3     17.70-18.20

TECHNICAL INDICATORS
Name   Value Action
14DRSI   49.320 Buy
20-DMA   16.44 Sell
50-DMA   16.53 Sell
100-DMA   16.63 Sell
200-DMA   16.77 Sell
STOCH(5,3)   59.380 Buy
MACD(12,26,9)   -0.063 Buy

Oil - WTI

AAFX TRADING

Crude Oil on Tuesday made an intra‐day high of US$65.75/bbl, intraday low of US$63.17/bbl and settled down by 3.412% to close at US$65.45/bbl.

Technicals in Focus:

On daily charts, oil is sustaining below its 50DMA i.e. 61.15 which is a major resistance and breakage above will call for 62.20-62.80. MACD is above zero line and histograms are in increasing 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 65.20-62.70 with stop loss at 62.70; targeting 65.20-64.50-64.00 and 63.30-62.70-62.00. Buy above 65.20-62.70 with risk daily closing below 62.70 and targeting 66.00-66.50 and 67.00-68.00.

 
Intraday Support Levels
S1     65.20-64.50
S2     64.00
S3     63.30-62.70

Intraday Resistance Levels
R1     66.00-66.50
R2     67.00
R3     68.00

TECHNICAL INDICATORS
Name   Value Action
14DRSI   58.870 Sell
20-DMA   63.67 Sell
50-DMA   62.75 Sell
100-DMA   60.86 Buy
200-DMA   57.58 Buy
STOCH(5,3)   85.622 Buy
MACD(12,26,9)   0.524 Sell

EUR/USD

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EUR/USD on Tuesday made an intraday low of US$1.2349/EUR, high of US$1.2302/EUR and settled the day up by 0.284% to close at US$1.2355/EUR.

Technicals in Focus:

On daily charts, prices are sustaining above 100DMA (1.2164), which become immediate resistance level, break below will target 1.2150-1.2000. MACD is below zero line but histograms are increasing mode which will bring bullish view. Stochastic is in neutral 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 1.2350-1.2510 targeting 1.2210-1.2160 and 1.2090-1.2000 with stop-loss at daily closing above 1.2450. Buy above 1.2300-1.2000 with risk below 1.2000 targeting 1.2300-1.2350-1.2400 and 1.2450-1.2510.

 
Intraday Support Levels
S1     1.2350-1.2300
S2     1.2250
S3     1.2210-1.2150

Intraday  Resistance Levels
R1     1.2400-1.2450
R2     1.2510
R3     1.2560

TECHNICAL INDICATORS
Name   Value Action
14DRSI   49.326 Buy
20-DMA   1.2309 Sell
50-DMA   1.2284 Sell
100-DMA   1.2168 Buy
200-DMA   1.1930 Buy
STOCH(5,3)   71.142 Buy
MACD(12,26,9)   -0.0083 Buy

GBP/USD

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GBP/USD on Tuesday made an intra‐day low of US$1.4116/GBP, high of US$1.4187/GBP and settled the day up by 0.325% to close at US$1.4173/GBP.

Technicals in Focus:

On daily charts, prices are sustaining above 50DMA (1.3953) 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 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 1.4150-1.4350 with targets at 1.4120-1.4070-1.4010 and 1.3910-1.3860. Buy above 1.4120-1.3900 with stop loss closing below 1.3910 targeting 1.4150-1.4250 and 1.4350-1.4400.

 
Intraday Support Levels
S1     1.4120
S2     1.4070-1.3990
S3     1.3910

Intraday Resistance Levels
R1     1.4150
R2     1.4250-1.4300
R3     1.4350

TECHNICAL INDICATORS
Name   Value Action
14DRSI  

58.982

Buy
20-DMA   1.4052 Buy
50-DMA   1.3961 Buy
100-DMA   1.3792 Buy
200-DMA   1.3540 Buy
STOCH(5,3)   86.0201 Buy
MACD(12,26,9)   0.0040 Sell

USD/JPY

AAFX TRADING

USD/JPY on Tuesday made intra‐day low of JPY106.61/USD and made an intraday high of JPY107.39/USD and settled the day up by 0.421% at JPY107.19/USD.

Technicals in Focus:

In daily charts, JPY is sustaining below 200DMA (111.15), which is major resistance 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 overbought territory and signaling to sell as it has given positive crossover to confirm bullish stance.

Trading Strategy: Neutral to Sell

Sell below 105.50-108.00 with risk above 108.00 targeting 104.90-104.40 and 103.90-103.10. Long positions above 104.90-103.10 with targets of 105.50-106.00-106.70 and 107.50-107.90 with stop below 104.90.

 
Intraday Support Levels
S1     106.70
S2     105.50-104.90
S3     105.50-104.90

INTRADAY RESISTANCE LEVELS
R1     107.50-108.00
R2     108.70
R3     109.60

TECHNICAL INDICATORS
Name   Value Action
14DRSI   54.841 Buy
20-DMA   106.53 Sell
50-DMA   107.26 Sell
100-DMA   108.60 Sell
200-DMA   110.69 Sell
STOCH(9,6)   67.710 Sell
MACD(12,26,9)   -0.330 Sell

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