AAFX TRADING

Daily Market Lookup

  • World stocks extended a sell-off on Tuesday as escalating trade tussles between the United States and other major economies steered investors away from riskier assets, with markets in China bearing the brunt of investor anxiety. The tense atmosphere lifted demand for safe-haven U.S. Treasuries and kept the dollar on the defensive as financial markets worried about the wider global economic fallout of the Trump administration's "America First' agenda Sparking the drop in tech shares and souring broader sentiment was a report on Monday that the U.S. Treasury Department was drafting curbs that would block companies with at least 25 percent Chinese ownership from investing in U.S. tech firms. Besides the trade dispute with China, the United States has recently raised the stakes in a challenge to the European Union by threatening tariffs on cars imported from the bloc. The greenback was pressured as long-term U.S. Treasury yields declined to one-week lows as prices rose on heightened risk aversion in financial markets. The U.S. Treasury Department was said to be drafting curbs to stop companies with at least 25% Chinese ownership from buying U.S. tech firms. The news sent the U.S. stocks down on Monday. Chinese Vice Premier Liu He, who is also President Xi Jinping’s top economic adviser, said China is prepared to face off against U.S.’s tariff threats China Vice Premier Liu says China, E.U. aim to conclude talks on bilateral investment deal Meanwhile, White House trade adviser Peter Navarro said American restriction on Chinese investments would not be as damaging to growth as markets expected. The USD/JPY pair dropped 0.26% to 109.48 on Tuesday morning. The new round of moves clouded investing prospects and hampered risk appetite. The yen attracts demand in times of political tensions and market turmoil.
  • Gold prices edged down on Tuesday despite escalating trade concerns between the U.S. and other major economies. The U.S. Treasury Department was said to be drafting curbs to stop companies with at least 25% Chinese ownership from buying U.S. tech firms. The news provided some support for gold prices earlier in the day and sent the U.S. stocks down on Monday. Chinese Vice Premier Liu He, who is also President Xi Jinping’s top economic adviser, said China is prepared to face off against U.S.’s tariff threats. Speaking at a press conference following talks on Monday in Beijing, Liu said China is prepared to face off against U.S.’s tariff threats. Meanwhile, White House trade adviser Peter Navarro said American restriction on Chinese investments would not be as damaging to growth as markets expected.
  • Oil markets were tense on Tuesday, rising on a Canadian production outage and uncertainty over Libyan crude exports, but weighed down by climbing OPEC supplies and the intensifying trade conflict between the United States and other major economies. Brent was driven up by uncertainty around oil exports by Libya, a member of the OPEC. The official state-owned oil company from the capital Tripoli, also called NOC, will not be allowed to handle that oil anymore, he said. In North America, production trouble at Canada's largest oil sands facilities at Syncrude in Alberta was pushing up prices Higher feedstock crude oil prices, as well as surging fuel exports from China, have pulled down Asian refinery product margins to two-year lows.The uncertainty over Libya's oil exports comes after OPEC together with a group of non-OPEC partners including top producer OPEC announced a supply rise of around 1 million barrels per day (bpd) aimed at cooling oil markets. Oil markets have tightened significantly since 2017, when OPEC and its partners started withholding supply to prop up slumping prices at the time. But BoAML warned of uncertainty as the impact of announced U.S. sanctions against Iran was not yet clear, and as the effects of the global trade dispute between the United States and major other economies including the European Union and China gradually take effect. In a gloomy sign of what may lie ahead for economic growth, the escalating trade fight has already led to sharp sell-offs in stock markets, especially in Asia.

 

 
Intraday RESISTANCE LEVELS
26th June 2018 R1 R2 R3
GOLD-XAU 1,274-1,280 1,286 1,289
Silver-XAG 16.40-16.60 17.00 17.40-17.70
Crude Oil 68.10 69.00-69.60 70.20
EURO/USD 1.1700-1.1820 1.1900 1.1960
GBP/USD 1.3300 1.3360-1.3450 1.3500
USD/JPY 109.80-110.50 111.00 111.50-112.00

Intraday SUPPORTS LEVELS
26th June 2018 S1 S2 S3
GOLD-XAU 1,265 1,260-1,251 1,240
Silver-XAG 16.00 15.60-15.30 14.80
Crude Oil 67.00 66.30 65.70-64.50
EURO/USD 1.1650 1.1600 1.1540-1.1490
GBP/USD 1.3260-1.3200 1.3145 1.3100-1.3025
USD/JPY 109.00 108.50-107.60 107.00

Intra-Day Strategy (26th 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$1272.44/oz and low of US$1264.42/oz. Gold was down by 0.370% at US$1265.36/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 1274-1311 keeping stop loss closing above 1311 and targeting 1265-1259 and 1251-1240. Buy above 1274-1250 with risk below 1250, targeting 1280-1289-1295 and 1305-1311.

 
Intraday Support Levels
S1     1,265
S2     1,260-1,251
S3     1,240
Intraday Resistance Levels
R1     1,274-1,280
R2     1,286
R3     1,289

Technical Indicators

Name   Value Action
14DRSI  

27.453

Buy
20-DMA   1283.15 Sell
50-DMA  

1297.53

Sell
100-DMA   1305.17 Sell
200-DMA   1301.00 Buy
STOCH(5,3)   24.565 Buy
MACD(12,26,9)   -10.267 Buy

Silver - XAG

AAFX TRADING

Silver on Monday made its intraday high of US$16.27/oz and low of US$16.27/oz. Silver settled down by 0.982% at US$16.31/oz.

Technicals in Focus:

On daily charts, silver is sustaining below 200DMA (16.69), 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 oversold 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 16.30-14.90 targeting 16.60-17.00-17.75 and 18.20-18.60; stop breakage below 15.00. Sell below 16.60-18.20 with stop loss above 18.20; targeting 16.60-16.30-16.00 and 15.60-15.00.

 
Intraday  Support Levels
S1     16.00
S2     15.60-15.30
S3     14.80

Intraday  Resistance Levels
R1     16.40-16.60
R2     17.00
R3     17.40-17.70

TECHNICAL INDICATORS
Name   Value Action
14DRSI   43.075 Buy
20-DMA   16.50 Sell
50-DMA   16.53 Sell
100-DMA   16.57 Sell
200-DMA   16.68 Sell
STOCH(5,3)   47.864 Buy
MACD(12,26,9)   0.0046 Buy

Oil - WTI

AAFX TRADING

Crude Oil on Monday made an intra‐day high of US$68.92/bbl, intraday low of US$67.47/bbl and settled down by 0.731% to close at US$67.88/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 68.10-71.00 with stop loss at 71.00; targeting 67.00-66.30 and 64.50-63.30. Buy above 67.00-64.50 with risk daily closing below 64.50 and targeting 68.10-69.00-69.60 and 70.20-71.00.

 
Intraday Support Levels
S1     67.00
S2     66.30
S3     65.70-64.50

Intraday Resistance Levels
R1     68.10
R2     69.00-69.60
R3     70.20

TECHNICAL INDICATORS
Name   Value Action
14DRSI   53.961 Sell
20-DMA   66.80 Buy
50-DMA   66.91 Buy
100-DMA   65.42 Buy
200-DMA   61.90 Buy
STOCH(5,3)   84.080 Sell
MACD(12,26,9)   -0.219 Sell

EUR/USD

AAFX TRADING

EUR/USD on Monday made an intraday low of US$1.1627/EUR, high of US$1.1674/EUR and settled the day up by 0.491% to close at US$1.1653/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 1.1650-1.1400 with risk below 1.1400 targeting 1.1700-1.1820 and 1.1900-1.1960. Sell below 1.1700-1.1960 targeting 1.1650-1.1540-1.1490 and 1.1420-1.1370 with stop-loss at daily closing above 1.1800.

 
Intraday Support Levels
S1     1.1650
S2     1.1600
S3     1.1540-1.1490

Intraday  Resistance Levels
R1     1.1700-1.1820
R2     1.1900
R3     1.1960

TECHNICAL INDICATORS
Name   Value Action
14DRSI   50.059 Buy
20-DMA   1.1689 Sell
50-DMA   1.1822 Sell
100-DMA   1.1935 Buy
200-DMA   1.1896 Buy
STOCH(5,3)   90.879 Buy
MACD(12,26,9)   -0.0049 Buy

GBP/USD

AAFX TRADING

GBP/USD on Monday made an intra‐day low of US$1.32201/GBP, high of US$1.3290/GBP and settled the day down by 0.218% to close at US$1.3274/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 Buy

Based on the charts and explanations above; short positions below 1.3300-1.3500 with targets at 1.3260-1.3200-1.3100 and 1.3060-1.3000. Buy above 1.3260-1.3025 with targets 1.3300-1.3360-1.3400 and 1.3450-1.3550 with stop loss closing below 1.3160.

 
Intraday Support Levels
S1     1.3260-1.3200
S2     1.3145
S3     1.3100-1.3025

Intraday Resistance Levels
R1     1.3300
R2     1.3360-1.3450
R3     1.3500

TECHNICAL INDICATORS
Name   Value Action
14DRSI  

40.893

Buy
20-DMA   1.3309 Buy
50-DMA   1.3470 Buy
100-DMA   1.3581 Buy
200-DMA   1.3530 Buy
STOCH(5,3)   78.146 Buy
MACD(12,26,9)   -0.0069 Sell

USD/JPY

AAFX TRADING

USD/JPY on Monday made intra‐day low of JPY109.36/USD and made an intraday high of JPY110.03/USD and settled the day down by 0.0181% at JPY1109.73/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 109.80-112.00 with risk above 112.00 targeting 109.00-108.40 and 107.60-107.00. Long positions above 109.00-107.00 with targets of 109.80-110.50-111.00 and 111.50-112.00 with stop below 107.00.

 
Intraday Support Levels
S1     109.00
S2     108.50-107.60
S3     107.00

INTRADAY RESISTANCE LEVELS
R1     109.80-110.50
R2     111.00
R3     111.50-112.00

TECHNICAL INDICATORS
Name   Value Action
14DRSI   47.803 Buy
20-DMA   109.95 Buy
50-DMA   109.47 Buy
100-DMA   109.26 Sell
200-DMA   109.66 Sell
STOCH(9,6)   28.642 Sell
MACD(12,26,9)   0.132 Sell

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