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Daily Market Lookup

  • Gold prices rebounded from two-month lows on Wednesday as the dollar pulled away from multi-month highs amid profit taking ahead of the conclusion of the Federal Reserve policy meeting later in the day. Gold recovered as the U.S. dollar index, which measures the greenback’s strength against a basket of six major currencies, slid 0.21% to 92.09, pulling back from Tuesday’s four-month highs of 92.37. A weaker U.S. currency makes dollar denominated gold less expensive for overseas buyers. The upside for gold looked likely to remain limited as metal traders looked ahead to a Fed meeting that is expected to point to another two or possibly even three rate hikes this year. Data on Tuesday indicated that while U.S. factory activity slowed slightly in April inflationary pressures are building. Another report earlier this week showed that the Fed’s preferred measure of inflation accelerated to its highest in more than a year in March, while data last week showed that wages grew at their fastest pace in in eleven years in the first quarter. Rising inflation would be a catalyst to push the Fed toward raising interest rates at a faster pace than currently expected. Fed officials projected three increases in 2018 at their meetings December and March. While the Fed is expected to keep interest rates on hold at the conclusion of its policy meeting later Wednesday policymakers are widely expected to line up their next rate hike in June. Markets are also looking ahead to Friday’s U.S. employment report for April, which could provide further signs of strength in the world's largest economy. Expectations for a faster pace of rate hikes tend to be bearish for gold, which struggles to compete with yield bearing assets when interest rates rise.
  • Crude prices edged higher in early action on Wednesday, bouncing back from the prior session's losses as investors 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 for the week ended April 27 at 10:30AM ET (1430GMT), amid forecasts for an oil-stock increase of 739,000 barrels. Analysts also forecast a fall of 587,000 barrels for gasoline stockpiles, while distillate inventories are expected to drop by 1.3 million barrels. After markets closed Tuesday, the American Petroleum Institute said that U.S. oil inventories rose by 3.4 million barrels last week. The API data also showed a climb of 1.6 million barrels in gasoline stockpiles, while inventories of distillates fell by 4.1 million barrels. There are often sharp divergences between the API estimates and the official figures from EIA. President Donald Trump has until May 12 to decide whether to pull the United States out of a 2015 international accord to curb Iran’s nuclear program and restore sanctions on one of the world's biggest oil producers. If sanctions are reinstated, that could contribute to tighter global oil inventories, as it would likely result in a reduction of Tehran's oil exports..

 

 
Intraday RESISTANCE LEVELS
2nd May 2018 R1 R2 R3
GOLD-XAU 1,311-1,321 1,331 1,340-1,350
Silver-XAG 16.40-17.00 17.40 17.70-18.20
Crude Oil 68.10-68.90 69.60 70.50-71.00
EURO/USD 1.2090 1.2150-1.2200 1.2250
GBP/USD 1.3700-1.3750 1.3800 1.3910
USD/JPY 110.00-110.50 111.00 112.00

Intraday SUPPORTS LEVELS
2nd May 2018 S1 S2 S3
GOLD-XAU 1,304 1,295-1,289 1,280
Silver-XAG 16.05-15.60 15.30 15.00
Crude Oil 67.50 67.00 66.50-66.00
EURO/USD 1.2000-1.1975 1.1915 1.1850
GBP/USD 1.3605-1.3550 1.3500 1.3450
USD/JPY 109.60-109.00 108.40 107.50-107.00

Intra-Day Strategy (2nd May 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

AAFX TRADING

Gold on Tuesday made its intraday high of US$1316.25/oz and low of US$1301.61/oz. Gold was down by 0.850% at US$1303.84/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 1331-1363 keeping stop loss closing above 1363 and targeting 1321-1311 and 1303-1295. Buy above 1321-1295 with risk below 1295, targeting 1331-1340 and 1350-1357.

 
Intraday Support Levels
S1     1,304
S2     1,295-1,289
S3     1,280
Intraday Resistance Levels
R1     1,311-1,321
R2     1,331
R3     1,340-1,350

Technical Indicators

Name   Value Action
14DRSI  

44.897

Buy
20-DMA   1332.63 Sell
50-DMA  

1330.42

Buy
100-DMA   1321.32 Buy
200-DMA   1304.46 Buy
STOCH(5,3)   16.385 Buy
MACD(12,26,9)   -1.817 Buy

Silver - XAG

AAFX TRADING

Silver on Tuesday made its intraday high of US$16.32/oz and low of US$16.04/oz. Silver settled down by 0.920% at US$16.14/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 negative crossover to show downside move for the intraday trade.

Trading Strategy: Neutral

Based on the charts and explanations above, buy above 16.05-15.00 targeting 16.40-17.00-17.75 and 18.20-18.60; stop breakage below 15.00. Sell below 16.40-18.20 with stop loss above 18.20; targeting 16.00-15.60 and 15.00-14.50.

 
Intraday  Support Levels
S1     16.05-15.60
S2     15.30
S3     15.00

Intraday  Resistance Levels
R1     16.40-17.00
R2     17.40
R3     17.70-18.20

TECHNICAL INDICATORS
Name   Value Action
14DRSI   42,710 Buy
20-DMA   16.54 Sell
50-DMA   16.57 Sell
100-DMA   16.63 Sell
200-DMA   16.75 Sell
STOCH(5,3)   25.455 Sell
MACD(12,26,9)   -0.0507 Buy

Oil - WTI

AAFX TRADING

Crude Oil on Tuesday made an intra‐day high of US$68.82/bbl, intraday low of US$67.79/bbl and settled down by 1.606% to close at US$67.39/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 68.00-71.00 with stop loss at 71.00; targeting 67.50-66.50 and 66.00-65.20. Buy above 67.50-65.20 with risk daily closing below 65.00 and targeting 68.10-68.90-69.60 and 70.50-71.00.

 
Intraday Support Levels
S1     67.50
S2     67.00
S3     66.50-66.00

Intraday Resistance Levels
R1     68.10-68.90
R2     69.60
R3     70.50-71.00

TECHNICAL INDICATORS
Name   Value Action
14DRSI   55.811 Sell
20-DMA   66.90 Buy
50-DMA   65.03 Buy
100-DMA   62.66 Buy
200-DMA   59.00 Buy
STOCH(5,3)   36.893 Sell
MACD(12,26,9)   1.067 Sell

EUR/USD

AAFX TRADING

EUR/USD on Tuesday made an intraday low of US$1.980/EUR, high of US$1.2083/EUR and settled the day down by 0.703% to close at US$1.1991/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 1.2090-1.2300 targeting 1.2000-1.1970 and 1.1915-1.1850 with stop-loss at daily closing above 1.2300. Buy above 1.2000-1.1850 with risk below 1.1850 targeting 1.2090-1.2150-1.2250 and 1.2300-1.2350.

 
Intraday Support Levels
S1     1.2000-1.1975
S2     1.1915
S3     1.1850

Intraday  Resistance Levels
R1     1.2090
R2     1.2150-1.2200
R3     1.2250

TECHNICAL INDICATORS
Name   Value Action
14DRSI   29.436 Buy
20-DMA   1.2209 Sell
50-DMA   1.2248 Sell
100-DMA   1.2182 Buy
200-DMA   1.1974 Buy
STOCH(5,3)   8.134 Sell
MACD(12,26,9)   -0.004 Buy

GBP/USD

AAFX TRADING

GBP/USD on Tuesday made an intra‐day low of US$1.3587/GBP, high of US$1.3772/GBP and settled the day down by 1.097% to close at US$1.3610/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 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 1.3700-1.3910 with targets at 1.3605-1.3550 and 1.3500-1.3450. Buy above 1.3605-1.3450 with targets 1.3500-1.3550 and 1.3500-1.3450 with stop loss closing below 1.3450 targeting 1.3700-1.3750 and 1.3800-1.3910.

 
Intraday Support Levels
S1     1.3605-1.3550
S2     1.3500
S3     1.3450

Intraday Resistance Levels
R1     1.3700-1.3750
R2     1.3800
R3     1.3910

TECHNICAL INDICATORS
Name   Value Action
14DRSI  

29.345

Buy
20-DMA   1.3939 Buy
50-DMA   1.3964 Buy
100-DMA   1.3845 Buy
200-DMA   1.3607 Buy
STOCH(5,3)   12.233 Sell
MACD(12,26,9)   -0.0093 Sell

USD/JPY

AAFX TRADING

USD/JPY on Tuesday made intra‐day low of JPY109.23/USD and made an intraday high of JPY109.88/USD and settled the day up by 0.475% at JPY109.85/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 110.00-112.00 with risk above 112.00 targeting 109.60-109.00-108.40 and 107.50-107.00-106.70. Long positions above 108.00-106.00 with targets of 108.90-109.60 and 110.00-110.50 with stop below 104.90.

 
Intraday Support Levels
S1     109.60-109.00
S2     108.40
S3     107.50-107.00

INTRADAY RESISTANCE LEVELS
R1     110.00-110.50
R2     111.00
R3     112.00

TECHNICAL INDICATORS
Name   Value Action
14DRSI   70.426 Buy
20-DMA   108.27 Buy
50-DMA   107.82 Buy
100-DMA   108.53 Sell
200-DMA   109.56 Sell
STOCH(9,6)   89.522 Buy
MACD(12,26,9)   0.785 Sell

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