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Daily Market Lookup

  • Asian stocks rose on Wednesday after tech sector strength lifted Wall Street shares while concerns about Italy's debt prompted investors to move into lower-risk government debt elsewhere, pushing U.S. Treasury yields down from recent highs. Treasury yields fell as investors moved back into safe-haven government debt after Italy's new Prime Minister Giuseppe Conte vowed to enact economic policies that could add to the nation's already-heavy debt load. On the other hand, the debt concerns caused Italian government bond yields to rise again after they had declined to one-week lows on Monday. The currency market's response to comments from the new Italian prime minister was more positive, with the euro gaining after Conte said the government had no plans to leave the euro zone. The lingering concerns over tit-for-tat trade tariffs and the risk of a bigger global trade war remained in the background, weighing on investor sentiment. In the latest developments, Mexico imposed tariffs on a range of American products, retaliating for U.S. President Donald Trump's decision last week to remove an exemption on steel and aluminum for allies Mexico, Canada and the European Union. Trump economic advisor Larry Kudlow also revived the possibility that the president will seek to replace NAFTA with bilateral deals with Canada and Mexico. The threat of rising trade protectionism has already taken a toll on global trade and could increase risks to growth, ANZ analysts Daniel Been and Giulia Lavinia Specchia said in a note.
  • The euro jumped to a 10-day high versus the dollar and bond yields across the single currency bloc rose on Wednesday after upbeat comments from the European Central Bank's chief economist. In remarks that come ahead of next week's closely-watched meeting, Peter Praet said the underlying strength of the euro area economy persists and that inflation expectations are increasingly consistent with the bank's aim. he dollar fell below the 94 level in morning trade on Wednesday, while the Aussie got a lift from upbeat growth data that beat expectation. The USD/JPY pair gained 0.05% to 109.84. Official data showed on Wednesday that Japanese workers’ real wages were unchanged in April from the same period last year, compared to a revised 0.7% annual increase in March.  In China, the USD/CNY pair added 0.02% to trade at 6.4063.  The People's Bank of China set the set the reference rate for the yuan against the dollar, the mid-point from which the currency is allowed to trade, at 6.4040 versus the previous day's 6.4157.  Trade talks between the U.S. and China are ongoing. Reports on Tuesday that China offered to increase buying of U.S. goods by $25 billion this year caught some attention. Citing people familiar with the matter, the reports said China would step up purchases of crude oil, coal and farm products.
  • U.S. oil prices inched up on Wednesday after industry data showed a decline in local crude inventories. U.S. crude inventories dropped by 2 million barrels, compared with expectations for a fall of 1.8 million barrels, American Petroleum Institute data showed on Tuesday. Meanwhile, gasoline stocks rose by 3.8 million barrels, compared with expectations for a 587,000-barrel gain. Distillate fuels stockpiles fell by 871,000 barrels, compared with expectations for a 784,000-barrel gain. Looking ahead, traders are waiting for a report by the U.S. Energy Department's Energy Information Administration due later in the day. Sentiment on oil prices remained mostly negative, however, as investors continued to fear OPEC, at its meeting on June 22, could ease production curbs to offset falling supplies in Venezuela and an expected drop in Iran oil exports as U.S. sanctions loom. Russian Energy Minister Alexander Novak said on Tuesday that oil demand should decide how OPEC and non-OPEC countries to adjust a current deal on oil output curbs. In November 2016, OPEC and other producers, including Russia agreed to cut output by 1.8 million barrels per day (bpd) to slash global inventories to the five year-average. The OPEC-led deal was renewed last year through 2018. Global oil prices rose during Asian trade on Wednesday after Venezuela raised the prospect of halting some crude exports, according to people familiar with the matter, but gains were capped amid reports the U.S. government had asked Saudi Arabia and some other OPEC producers to increase output. Falling production from Venezuela has contributed to a rally in global oil price Brent to nearly $80 a barrel. State firm PDVSA is considering declaring force majeure on some exports, three sources told Reuters, amid plummeting output from its oil fields and tanker bottlenecks at ports. Global oil prices rose during Asian trade on Wednesday after Venezuela raised the prospect of halting some crude exports, according to people familiar with the matter, but gains were capped amid reports the U.S. government had asked Saudi Arabia and some other OPEC producers to increase output. Falling production from Venezuela has contributed to a rally in global oil price Brent to nearly $80 a barrel. State firm PDVSA is considering declaring force majeure on some exports, three sources told Reuters, amid plummeting output from its oil fields and tanker bottlenecks at ports.

 

 
Intraday RESISTANCE LEVELS
6th 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 1.1800 1.1850-1.1930 1.2010
GBP/USD 1.3400 1.3550 1.3550
USD/JPY 110.50 111.00 111.50-112.00

Intraday SUPPORTS LEVELS
6th 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 1.1725 1.1650 1.1550-1.1450
GBP/USD 1.3300-1.3260 1.3160 1.3100
USD/JPY 110.00 109.00-108.50 107.60

Intra-Day Strategy (6th 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 Tuesday made its intraday high of US$1300.45/oz and low of US$1289.72/oz. Gold was up by 0341% at US$1296.33/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  

44.341

Buy
20-DMA   1300.52 Sell
50-DMA  

1310.27

Sell
100-DMA   1312.78 Sell
200-DMA   1303.83 Buy
STOCH(5,3)   35.391 Sell
MACD(12,26,9)   -5.478 Buy

Silver - XAG

AAFX TRADING

Silver on Tuesday made its intraday high of US$16.51/oz and low of US$16.34/oz. Silver settled up by 0.488% at US$16.47/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   53.916 Buy
20-DMA   16.47 Sell
50-DMA   16.50 Sell
100-DMA   16.57 Sell
200-DMA   16.70 Sell
STOCH(5,3)   60.561 Buy
MACD(12,26,9)   -0.0147 Buy

Oil - WTI

AAFX TRADING

Crude Oil on Tuesday made an intra‐day high of US$64.17/bbl, intraday low of US$64.17/bbl and settled up by 0.909% to close at US$65.43/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   38.595 Sell
20-DMA   67.88 Buy
50-DMA   67.40 Buy
100-DMA   65.17 Buy
200-DMA   61.25 Buy
STOCH(5,3)   24.276 Sell
MACD(12,26,9)   -0.824 Sell

EUR/USD

AAFX TRADING

EUR/USD on Tuesday made an intraday low of US$1.1651/EUR, high of US$1.1731/EUR and settled the day up by 0.162% to close at US$1.1716/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 1.1725-1.1450 with risk below 1.1450 targeting 1.1800-1.1850 and 1.1930-1.2010-. Sell below 1.1800-1.2010 targeting 1.1725-1.1600-1.1550-and 1.1450-1.1390 with stop-loss at daily closing above 1.2010.

 
Intraday Support Levels
S1     1.1725
S2     1.1650
S3     1.1550-1.1450

Intraday  Resistance Levels
R1     1.1800
R2     1.1850-1.1930
R3     1.2010

TECHNICAL INDICATORS
Name   Value Action
14DRSI   44.0314 Buy
20-DMA   1.1762 Sell
50-DMA   1.1935 Sell
100-DMA   1.2018 Buy
200-DMA   1.1929 Buy
STOCH(5,3)   86.063 Buy
MACD(12,26,9)   -0.0092 Buy

GBP/USD

AAFX TRADING

GBP/USD on Tuesday made an intra‐day low of US$1.3301/GBP, high of US$1.3408/GBP and settled the day up by 0.555% to close at US$1.3384/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     1.3300-1.3260
S2     1.3160
S3     1.3100

Intraday Resistance Levels
R1     1.3400
R2     1.3550
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 Tuesday made intra‐day low of JPY109.46/USD and made an intraday high of JPY109.99/USD and settled the day down by 0.0364% at JPY109.76/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 110.50-112.90 with risk above 112.90 targeting 109.60-109.00-108.40 and 107.60-107.00. Long positions above 109.60-106.60 with targets of 110.50-111.00 and 111.50-112.00 with stop below 106.60.

 
Intraday Support Levels
S1     110.00
S2     109.00-108.50
S3     107.60

INTRADAY RESISTANCE LEVELS
R1     110.50
R2     111.00
R3     111.50-112.00

TECHNICAL INDICATORS
Name   Value Action
14DRSI   58.242 Buy
20-DMA   109.56 Buy
50-DMA   109.01 Buy
100-DMA   108.99 Sell
200-DMA   109.59 Sell
STOCH(9,6)   94.043 Sell
MACD(12,26,9)   0.194 Sell

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