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Daily Market Lookup

  • Asian stocks steadied on Tuesday as investors paused for breath after the previous day’s rally, although tech-inspired Wall Street gains supported broader sentiment as focus shifted to bullish economic fundamentals, away from trade concerns. Friday’s better-than-expected May U.S. employment report has helped revive investor optimism about the world’s biggest economy, shifting the focus away from recent trade tensions. Italy’s anti-establishment parties formed a coalition government on Friday to end three months of deadlock and averting potentially destabilising snap elections. The Federal Reserve is scheduled to hold a two-day policy meeting starting on June 12. With risk aversion ebbing in the broader markets, safe-haven government bonds were sold and their yields rose.
  • The euro and the dollar steadied on Tuesday as investors awaited a fresh catalyst after the previous day’s gains as signs of strength in the U.S. economy shifted focus away from trade concerns. The euro has rebounded since hitting a ten-month low of 1.1509 a week ago as concerns over the political situation in Italy subsided after anti-establishment parties formed a coalition government, easing fears that repeat elections could give a mandate for the country to exit the euro zone. The dollar was little changed against the Japanese currency, with USD/JPY at 109.80, extending its recovery from a five week low of 108.10 set last Tuesday. Demand for the dollar continued to be underpinned after strong U.S. employment data on Friday cemented expectations for a June rate hike by the Federal Reserve and revived expectations for a fourth rate hike this year. The Fed is widely expected to raise interest rates at its upcoming meeting next week, following on from its last rate hike in March. Trade tensions remained in focus after finance ministers from the world’s leading economies criticized the Trump administrations new tariffs on steel and aluminum imports at a G7 meeting in Canada over the weekend Meanwhile, weekend talks between the U.S. and China on trade ended without a breakthrough, raising the danger that negotiations could collapse. Investors also eye the development of the U.S.-North Korea summit, as the White House confirmed a time for U.S. President Donald Trump to meet with his North Korean counterpart Kim Jong-un. The two are set to meet at 9 a.m. Singapore time on June 12, but Press Secretary Sarah Huckabee Sanders noted that sanctions would continue unless North Korea denuclearized.
  • Oil prices rebounded on Tuesday on expectations that inventories in the United States may decline, but increasing U.S. production and concerns that OPEC may raise output continue to weigh on sentiment. The OPEC is due to meet in Vienna on June 22 to decide whether the group and non-OPEC producers, including Russia, will raise output to ease concerns over potential supply shortfalls from Iran and Venezuela. Over the weekend, OPEC and non-OPEC Arab oil ministers agreed on the need for continued cooperation to balance global supply, Kuwait's state news agency KUNA reported Despite signs of an impending rise in OPEC production, "for the moment the output will remain low," ANZ bank said in a note on Tuesday. Crude stocks in the United States, the world's biggest oil consumer, were forecast to fall about 2.5 million barrels on average in the week ended June 1, according to five analysts polled ahead of the reports. But increasing U.S. crude oil production has also put pressure on oil prices. In March, U.S. crude output rose to 10.47 million barrels per day, the highest on record, according to a monthly report by the EIA. Industry group American Petroleum Institute (API) is due to release its data for last week's U.S. crude oil inventories at 2030 GMT on Tuesday. The EIA report is scheduled at 1430 GMT on Wednesday. Global oil supply has tightened with the OPEC-led production cuts that began in early 2017. Crude stocks in the United States, the world's biggest oil consumer, were forecast to fall about 2.5 million barrels on average in the week ended June 1, according to five analysts polled ahead of the reports. But increasing U.S. crude oil production has also put pressure on oil prices. In March, U.S. crude output rose to 10.47 million barrels per day, the highest on record, according to a monthly report by the EIA. The number of rigs drilling in the United States was up by two in the week to June 1, bringing the total to 861, the most since 2015, General Electric Co's (N:GE) Baker Hughes energy services said on Friday. Industry group API is due to release its data for last week's U.S. crude oil inventories at 2030 GMT on Tuesday. The EIA report is scheduled at 1430 GMT on Wednesday.

 

 
Intraday RESISTANCE LEVELS
5th June 2018 R1 R2 R3
GOLD-XAU 1300-1,305 1,311 1,321-1,330
Silver-XAG 17.00 17.40 17.70-18.20
Crude Oil 65.70-66.30 67.00 68.10-69.00
EURO/USD 1.1725 1.1800 1.1850-1.1915
GBP/USD 1.3400 1.3450-1.3500 1.3550
USD/JPY 110.00-110.50 111.00 111.50-112.00

Intraday SUPPORTS LEVELS
5th June 2018 S1 S2 S3
GOLD-XAU 1,290 1,280-1,274 1,265
Silver-XAG 16.31 16.00-15.60 15.30
Crude Oil 65.00-64.50 63.00 61.80
EURO/USD 1.1650 1.1550-1.1450 1.1390
GBP/USD 1.3160 1.3160 1.3100
USD/JPY 109.00-108.50 107.60 107.00-106.60

Intra-Day Strategy (5th June 2018)
GOLD-XAU Sell on Strength
Silver-XAG Neutral
Crude Oil Neutral
EUR/USD Neutral to Buy
GBP/USD Neutral to Buy
USD/JPY Neutral to Sell

Gold – XAU

AAFX TRADING

Gold on Monday made its intraday high of US$1297.98/oz and low of US$1290.17/oz. Gold was down by 0.208% at US$1291.87/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 overbought 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 1300-1331 keeping stop loss closing above 1331 and targeting 1290-1280-1274 and 1265-1259. Buy above 1289-1265 with risk below 1280, targeting 1295-1305-1311 and 11321-1331.

 
Intraday Support Levels
S1     1,290
S2     1,280-1,274
S3     1,265
Intraday Resistance Levels
R1     1300-1,305
R2     1,311
R3     1,321-1,330

Technical Indicators

Name   Value Action
14DRSI  

38.410

Buy
20-DMA   1301.29 Sell
50-DMA  

1311.27

Sell
100-DMA   1313.42 Sell
200-DMA   1303.97 Buy
STOCH(5,3)   23.875 Sell
MACD(12,26,9)   -6.296 Buy

Silver - XAG

AAFX TRADING

Silver on Monday made its intraday high of US$16.53/oz and low of US$16.35/oz. Silver settled up by 0.122% at US$16.39/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 16.31-14.90 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     16.31
S2     16.00-15.60
S3     15.30

Intraday  Resistance Levels
R1     17.00
R2     17.40
R3     17.70-18.20

TECHNICAL INDICATORS
Name   Value Action
14DRSI   47.258 Buy
20-DMA   16.47 Sell
50-DMA   16.51 Sell
100-DMA   16.57 Sell
200-DMA   16.70 Sell
STOCH(5,3)   61.416 Buy
MACD(12,26,9)   -0.0013 Buy

Oil - WTI

AAFX TRADING

Crude Oil on Monday made an intra‐day high of US$65.98/bbl, intraday low of US$64.52/bbl and settled down by 1.143% to close at US$64.81/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 oversold 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 65.70-69.00 with stop loss at 69.00; targeting 65.20-64.50 and 63.00-61.80. Buy above 65.00-61.80 with risk daily closing below 61.70 and targeting 65.70-66.30-67.00 and 68.10-69.30.

 
Intraday Support Levels
S1     65.00-64.50
S2     63.00
S3     61.80

Intraday Resistance Levels
R1     65.70-66.30
R2     67.00
R3     68.10-69.00

TECHNICAL INDICATORS
Name   Value Action
14DRSI   35.688 Sell
20-DMA   68.09 Buy
50-DMA   67.46 Buy
100-DMA   65.16 Buy
200-DMA   61.21 Buy
STOCH(5,3)   10.116 Sell
MACD(12,26,9)   -0.757 Sell

EUR/USD

AAFX TRADING

EUR/USD on Monday made an intraday low of US$1.1655/EUR, high of US$1.1774/EUR and settled the day up by 0.257% to close at US$1.1697/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 Buy

Buy above 1.1650-1.1300 with risk below 1.1300 targeting 1.1725-1.1800 and 1.1850-1.1915. Sell below 1.1700-1.1915 targeting 1.1600-1.1550-and 1.1450-1.1390 with stop-loss at daily closing above 1.1915.

 
Intraday Support Levels
S1     1.1650
S2     1.1550-1.1450
S3     1.1390

Intraday  Resistance Levels
R1     1.1725
R2     1.1800
R3     1.1850-1.1915

TECHNICAL INDICATORS
Name   Value Action
14DRSI   38.835 Buy
20-DMA   1.1762 Sell
50-DMA   1.1942 Sell
100-DMA   1.2023 Buy
200-DMA   1.1931 Buy
STOCH(5,3)   75.592 Buy
MACD(12,26,9)   -0.0104 Buy

GBP/USD

AAFX TRADING

GBP/USD on Monday made an intra‐day low of US$1.3294/GBP, high of US$1.3398/GBP and settled the day down by 0.150% to close at US$1.3312/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 Buy

Based on the charts and explanations above; short positions below 1.3400-1.3700 with targets at 1.3320-1.3260 and 1.3160-1.3100. Buy above 1.3400-1.3160 with targets 1.3450-1.3550-1.3605 and 1.3700-1.3750 with stop loss closing below 1.3160.

 
Intraday Support Levels
S1     1.3160
S2     1.3160
S3     1.3100

Intraday Resistance Levels
R1     1.3400
R2     1.3450-1.3500
R3     1.3550

TECHNICAL INDICATORS
Name   Value Action
14DRSI  

37.835

Buy
20-DMA   1.3434 Buy
50-DMA   1.3630 Buy
100-DMA   1.3689 Buy
200-DMA   1.3570 Buy
STOCH(5,3)   77.186 Buy
MACD(12,26,9)   -0.0122 Sell

USD/JPY

AAFX TRADING

USD/JPY on Monday made intra‐day low of JPY109.36/USD and made an intraday high of JPY109.84/USD and settled the day up by 0.338% at JPY109.80/USD.

Technicals in Focus:

In daily charts, JPY is sustaining below 200DMA (109.62), 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 negative crossover to confirm bearish stance.

Trading Strategy: Neutral to Sell

Sell below 110.00-112.90 with risk above 112.90 targeting 109.60-109.00-108.40 and 107.60-107.00. Long positions above 109.00-106.60 with targets of 110.00 110.50-111.00 with stop below 106.60.

 
Intraday Support Levels
S1     109.00-108.50
S2     107.60
S3     107.00-106.60

INTRADAY RESISTANCE LEVELS
R1     110.00-110.50
R2     111.00
R3     111.50-112.00

TECHNICAL INDICATORS
Name   Value Action
14DRSI   55.288 Buy
20-DMA   109.50 Buy
50-DMA   108.96 Buy
100-DMA   108.97 Sell
200-DMA   109.59 Sell
STOCH(9,6)   89.712 Sell
MACD(12,26,9)   0.164 Sell

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