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Daily Market Lookup

  • The dollar hovered near 3-week highs on Tuesday and Asian shares gained as U.S. President Donald Trump and North Korean leader Kim Jong Un signed a 'comprehensive' deal at a historic summit aimed at the denuclearization of the Korean peninsula. Trump said the process of denuclearization would happen "very, very quickly", adding he had formed a "special bond" with Kim and the relationship with North Korea would be very different. Kim had earlier said the meeting was "a good prelude to peace", just months after the two leaders traded insults and tensions spiraled in the region over the reclusive regime's nuclear programs. Yet, there was some unease among investors about the outcome of the talks given the tense relations between the two nations. The combatants of the 1950-53 Korean War are technically still at war, as the conflict, in which millions of people died, was concluded only with a truce. Many analysts were uncertain about the overall impact on global economies and markets from the peace talks, with some pointing to a growing risk of an international trade war as a much bigger headwind to world growth. Just this past weekend, Trump upset the Group of Seven's efforts to show a united front, choosing to back out of a previous joint communique. Tuesday's North Korea summit will be followed by policy meetings of the U.S. Federal Reserve and the European Central Bank as well as a Brexit bill vote in the British parliament. The U.S. Federal Reserve is virtually guaranteed to raise interest rates this week while investors are focused on the U.S. monetary policy outlook.
  • The dollar hovered near a three-week high against the yen on Tuesday after U.S. President Donald Trump and North Korean leader Kim Jong Un signed a "comprehensive" letter at a historic summit aimed at the denuclearization of the Korean peninsula. Trump said the meeting in Singapore had gone "better than anybody could have expected" and he anticipated that the denuclearization process would start "very, very quickly". The meeting, a key event for world markets, came just months after they traded insults and tensions spiraled in the region over North Korea's nuclear and missile programs as it raced toward the goal of developing a nuclear-tipped missile capable of hitting the United States The dollar's rise against the yen, a perceived safe haven often sought in times of political tensions and market turmoil, reflected optimism that the Trump-Kim summit would open the door to the eventual denuclearization of North Korea The greenback was last up 0.3 percent at 110.390 yen, nudged off highs after news that White House economic adviser Larry Kudlow suffered a heart attack. The U.S. currency was not quite able to muster the momentum to stretch its gains as the markets waited for further details of the Trump-Kim meeting. Negotiations between Washington and Pyongyang could turn out to be a long drawn process and investor focus was expected to shift toward the week's other key events, notably central banks meetings. The U.S. FED holds a two-day meeting starting on June 12, and it is widely expected to raise interest rates for the second time this year. The focus is on whether the central bank will hint at raising rates a total of four times in 2018. The ECB also meets on June 14, when it could signal intentions to start unwinding its massive bond purchasing program. The Bank of Japan also concludes a two-day meeting on Friday at which it is widely expected to keep its loose monetary policy intact. The single currency reversed modest gains made on Monday after assurances from Italy that it would not leave the European Union calmed investors' nerves.
  • Gold on Monday made its intraday high of US$1302.09/oz and low of US$1294.07/oz. Gold was up by 0.0307% at US$1300.15/oz.Oil prices rose alongside global markets on Tuesday as U.S. President Donald Trump said a summit in Singapore with North Korea's Kim Jong Un had made "a lot of progress", boosting hopes of a deal to end a nuclear standoff on the Korean peninsula. Global markets were lifted after Trump said the closely watched summit with Kim was "really very positive" after he and Kim signed a document following talks. Beyond the Singapore summit, crude has been generally supported by healthy demand and voluntary production cuts led by OPEC. Some oil market fundamentals, however, point to lower prices, with output from the three biggest producers, Russia, the United States and Saudi Arabia on the rise. Russian production has reportedly climbed from below 11 mn bpd to 11.1 min bpd in early June. In the United States, output has risen by almost a third in the last two years, to a record of 10.8 mn bpd. Top exporter Saudi Arabia - which has so far led OPEC's efforts to withhold supplies - is also showing signs of raising production. In physical oil markets, Middle East light crude grades are set to trade at discounts against their respective official selling prices amid ample supplies to Asia, including from the United States, four trade sources said on Tuesday. Saudi Arabia has told OPEC that it increased oil output to a little more than 10 mn bpd in May, up from 9.9 mn bpd in April. Other producers are also increasing output. Kazakhstan's oil output in the first five months of 2018 rose 6.4 % from the same time a year ago to 37.7 mn tonnes (1.83 mn bpd), the Deputy Energy Minister Makhambet Dosmukhambetov said on Tuesday. OPEC, together with some non-OPEC producers including Russia, started withholding output in 2017 to end a global supply overhang and prop up prices. OPEC and its partners are due to meet at its headquarters in Vienna to discuss policy.

 

 
Intraday RESISTANCE LEVELS
12th 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 66.30 67.00 68.10-69.00
EURO/USD 1.1800 1.1850-1.1930 1.2010
GBP/USD 1.3400-1.3450 1.3500 1.3550-1.3610
USD/JPY 110.50 111.00 111.50-112.00

Intraday SUPPORTS LEVELS
12th June 2018 S1 S2 S3
GOLD-XAU 1,290 1,280-1,274 1,265
Silver-XAG 16.60-16.31 16.00 15.60-15.30
Crude Oil 65.70 65.00-64.50 63.00
EURO/USD 1.1750-1.1700 1.1650 1.1600
GBP/USD 1.3300-1.3260 1.3200 1.3060
USD/JPY 109.90 109.00-108.50 107.60

Intra-Day Strategy (12th 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$1302.09/oz and low of US$1294.07/oz. Gold was up by 0.0307% at US$1300.15/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 Monday made its intraday high of US$16.93/oz and low of US$16.72/oz. Silver settled up by 0.894% at US$16.91/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 16.60-14.90 targeting 17.00-17.75 and 18.20-18.60; stop breakage below 15.00. Sell below 17.00-18.20 with stop loss above 18.20; targeting 16.60-16.30-16.00 and 15.60-15.00.

 
Intraday  Support Levels
S1     16.60-16.31
S2     16.00
S3     15.60-15.30

Intraday  Resistance Levels
R1     17.00
R2     17.40
R3     17.70-18.20

TECHNICAL INDICATORS
Name   Value Action
14DRSI   63.673 Buy
20-DMA   16.56 Sell
50-DMA   16.54 Sell
100-DMA   16.58 Sell
200-DMA   16.69 Sell
STOCH(5,3)   79.807 Buy
MACD(12,26,9)   -0.0055 Buy

Oil - WTI

AAFX TRADING

Crude Oil on Monday made an intra‐day high of US$66.27/bbl, intraday low of US$64.80/bbl and settled down by 0.636% to close at US$65.97/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 66.30-69.00 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     65.70
S2     65.00-64.50
S3     63.00

Intraday Resistance Levels
R1     66.30
R2     67.00
R3     68.10-69.00

TECHNICAL INDICATORS
Name   Value Action
14DRSI   42.2282 Sell
20-DMA   67.29 Buy
50-DMA   67.20 Buy
100-DMA   65.20 Buy
200-DMA   61.38 Buy
STOCH(5,3)   42.228 Sell
MACD(12,26,9)   -0.938 Sell

EUR/USD

AAFX TRADING

EUR/USD on Monday made an intraday low of US$1.1726/EUR, high of US$1.1820/EUR and settled the day up by 0.118% to close at US$1.1782/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 1.1850- 1.1930 and 1.2010-1.2090-. Sell below 1.1850-1.2090 targeting 1.1800-1.1770 and 1.1725-1.1600-1.1550 with stop-loss at daily closing above 1.2010.

 
Intraday Support Levels
S1     1.1750-1.1700
S2     1.1650
S3     1.1600

Intraday  Resistance Levels
R1     1.1800
R2     1.1850-1.1930
R3     1.2010

TECHNICAL INDICATORS
Name   Value Action
14DRSI   45.9511 Buy
20-DMA   1.1769 Sell
50-DMA   1.1913 Sell
100-DMA   1.2007 Buy
200-DMA   1.1924 Buy
STOCH(5,3)   59.885 Buy
MACD(12,26,9)   -0.0053 Buy

GBP/USD

AAFX TRADING

GBP/USD on Monday made an intra‐day low of US$1.3343/GBP, high of US$1.3440/GBP and settled the day down by 0.119% to close at US$1.3376/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 1.3160-1.3100-1.3060. Buy above 1.3320-1.3060 with targets 1.3400-1.3450-1.3550-and 1.3605-1.3700 with stop loss closing below 1.3160.

 
Intraday Support Levels
S1     1.3300-1.3260
S2     1.3200
S3     1.3060

Intraday Resistance Levels
R1     1.3400-1.3450
R2     1.3500
R3     1.3550-1.3610

TECHNICAL INDICATORS
Name   Value Action
14DRSI  

47.263

Buy
20-DMA   1.3425 Buy
50-DMA   1.3604 Buy
100-DMA   1.3672 Buy
200-DMA   1.3565 Buy
STOCH(5,3)   89.496 Buy
MACD(12,26,9)   -0.0088 Sell

USD/JPY

AAFX TRADING

USD/JPY on Monday made intra‐day low of JPY109.27/USD and made an intraday high of JPY110.11/USD and settled the day up by 0.686% at JPY1110.02/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     109.90
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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