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Daily Market Lookup

  • Asian share markets were under stress on Wednesday as further falls in Chinese stocks and the yuan sent ripples across the region, while oil climbed as the United States leaned on allies to stop buying Iranian crude. The fragile mood in Asia overshadowed gains in energy stocks made after news broke that Washington was pushing allies to halt imports of Iranian crude. Confusion remained the watchword with U.S. trade policy. The U.S. House of Representatives overwhelmingly passed a bill on Tuesday to tighten foreign investment rules, spurred by bipartisan concerns about Chinese bids to acquire sophisticated U.S. technology. Yet President Donald Trump also endorsed a measured approach to restricting Chinese investments in U.S. technology companies, saying a strengthened merger security review committee could protect sensitive technologies. He noted that the latest tariff threats from the White House would cover more than 30 percent of U.S. imports, equal to almost 5 percent of annual economic output (GDP). The dollar has been aided in part by recent gains on the Chinese yuan, which has stirred speculation Beijing was allowing its currency to weaken to bolster exports.
  • The U.S. dollar was little changed on Wednesday morning in Asian trade as trade concerns eased somewhat. The People’s Bank of China (PBOC) sets the weakest yuan mid-point rate today since December 25, 2017, a move seen as China’s way of absorbing the shocks of the ongoing U.S.- China trade spat. U.S. President Donald Trump suggested during a meeting with lawmakers that his administration may switch to foreign investment reviews under the Committee on Foreign Investment in the United States instead of imposing new limits on Chinese investment in U.S. technology. The euro was a shade higher at $1.1657 (EUR=) after losing 0.5 percent overnight, when a rise in Italian bond yields ahead of debt auctions later this week soured sentiment toward the single currency. Italy will sell five- and 10-year bonds on Thursday, with the auctions seen as a test of investor appetite for the country's debt following the political turmoil that gripped Rome last month. The pound had dropped 0.45 percent on Tuesday after an incoming Bank of England policymaker expressed caution over Britain's readiness for higher interest rates and uncertainty over the impact of Brexit on the economy.
  • Gold prices slipped on Wednesday, sat near a more than six-month low as the dollar steadied amid seemingly easing trade tension. U.S. President Donald Trump suggested during a meeting with lawmakers that his administration may switch to foreign investment reviews under the Committee on Foreign Investment in the United States instead of imposing new limits on Chinese investment in U.S. technology.  Dollar-denominated assets such as gold are sensitive to moves in the dollar – A gain in the dollar makes gold more expensive for holders of foreign currency and thus, decreases demand for the precious metal.
  • Oil prices rose on Wednesday as a supply disruption in Canada tightened the market and after U.S. officials told importers to stop buying Iranian crude from November. Uncertainty over Libyan exports also supported crude, traders said. The United States demanded all countries stop imports of Iranian oil from November, a State Department official said on Tuesday. Oil markets did not react more strongly to Washington's pressure as the move was expected. In addition, top exporter Saudi Arabia plans to raise output to make up for lost supplies. During the last round of sanctions, which ended in 2016, several Asian countries received waivers from Washington allowing them to continue to import from Iran. This time, Washington already hinted when announcing renewed sanctions in May that it was unwilling to grant waivers. And while Tokyo and Seoul said on Wednesday they were still hoping to receive waivers from Washington, Japanese and South Korean buyers have already started dialing back purchases. Beyond looming sanctions, other threats to supply are keeping markets on edge. In Libya, a power struggle between the official government and rebels has left it unclear who will handle the country's large oil exports, although as of Tuesday the oil ports of Hariga and Zueitina in eastern Libya were working normally. In North America, a supply outage at Syncrude in Canada has locked in 350,000 bpd of crude, with repairs expected to last at least through July. The American Petroleum Institute (API) on Tuesday reported a 9.2 million barrel reduction in U.S. crude inventories in the week to June 22 to 421.4 million barrels. Trying to make up for disrupted supply, the OPEC said late last week it would increase output. Top exporter and de-facto OPEC leader Saudi Arabia plans to pump a record 11 million bpd in July, up from 10.8 million bpd in June.

 

 
Intraday RESISTANCE LEVELS
27th June 2018 R1 R2 R3
GOLD-XAU 1,260-1,265 1,271 1,278-1,284
Silver-XAG 16.40-16.60 17.00 17.40-17.70
Crude Oil 70.70-71.90 72.50 73.00
EURO/USD 1.1700-1.1820 1.1900 1.1960
GBP/USD 1.3260 1.3300 1.3360-1.3450
USD/JPY 109.80-110.50 111.00 111.50-112.00

Intraday SUPPORTS LEVELS
27th June 2018 S1 S2 S3
GOLD-XAU 1,251 1,243-1,236 1,220
Silver-XAG 16.00 15.60-15.30 14.80
Crude Oil 69.60-69.00 68.10 67.00-66.30
EURO/USD 1.1650 1.1600 1.1540-1.1490
GBP/USD 1.3200 1.3145 1.3100-1.3025
USD/JPY 109.00 108.50-107.60 107.00

Intra-Day Strategy (27th 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$1267.54/oz and low of US$1254.66/oz. Gold was down by 0.525% at US$1258.73/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 negative crossover to confirm bearish stance for intraday trade.

Trading Strategy: Sell on Strength

Based on the charts and explanations above; sell below 1260-1290 keeping stop loss closing above 1290 and targeting 1251-1243 and 1236-1220. Buy above 151-1220 with risk below 1220, targeting 1260-1265-1271 and 1278-1289.

 
Intraday Support Levels
S1     1,251
S2     1,243-1,236
S3     1,220
Intraday Resistance Levels
R1     1,260-1,265
R2     1,271
R3     1,278-1,284

Technical Indicators

Name   Value Action
14DRSI  

23.900

Buy
20-DMA   1280.11 Sell
50-DMA  

1295.70

Sell
100-DMA   1304.10 Sell
200-DMA   1300.50 Sell
STOCH(5,3)   17.278 Sell
MACD(12,26,9)   -11.478 Buy

Silver - XAG

AAFX TRADING

Silver on Tuesday made its intraday high of US$16.34/oz and low of US$16.13/oz. Silver settled down by 0.061% at US$16.27/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 16.00-14.90 targeting 16.35-16.60-17.00 and 17.75-18.20; 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   40.274 Buy
20-DMA   16.46 Sell
50-DMA   16.51 Sell
100-DMA   16.56 Sell
200-DMA   16.67 Sell
STOCH(5,3)   40.250 Buy
MACD(12,26,9)   0.0727 Buy

Oil - WTI

AAFX TRADING

Crude Oil on Tuesday made an intra‐day high of US$70.41/bbl, intraday low of US$70.05/bbl and settled down by 3.508% to close at US$70.28/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 70.70-73.00 with stop loss at 73.00; targeting 66.90-69.00 and 68.10-67.00-66.30. Buy above 69.60-66.30 with risk daily closing below 66.30 and targeting 70.70-71.50-71.90 and 72.50-73.00.

 
Intraday Support Levels
S1     69.60-69.00
S2     68.10
S3     67.00-66.30

Intraday Resistance Levels
R1     70.70-71.90
R2     72.50
R3     73.00

TECHNICAL INDICATORS
Name   Value Action
14DRSI   61.370 Sell
20-DMA   67.34 Buy
50-DMA   67.12 Buy
100-DMA   65.57 Buy
200-DMA   62.00 Buy
STOCH(5,3)   91.756 Buy
MACD(12,26,9)   0.230 Sell

EUR/USD

AAFX TRADING

EUR/USD on Tuesday made an intraday low of US$1.1634/EUR, high of US$1.1720/EUR and settled the day down by 0.491% to close at US$1.1645/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 Tuesday made an intra‐day low of US$1.3191/GBP, high of US$1.3191/GBP and settled the day down by 0.44% to close at US$1.3215/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 1.3260-1.3500 with targets at 1.3260-1.3200-1.3100 and 1.3060-1.3000. Buy above 1.3200-1.3025 with targets 1.3260-1.3300-1.3360 and 1.3400-1.3450 with stop loss closing below 1.3160.

 
Intraday Support Levels
S1     1.3200
S2     1.3145
S3     1.3100-1.3025

Intraday Resistance Levels
R1     1.3260
R2     1.3300
R3     1.3360-1.3450

TECHNICAL INDICATORS
Name   Value Action
14DRSI  

38.387

Buy
20-DMA   1.3297 Buy
50-DMA   1.3459 Buy
100-DMA   1.3573 Buy
200-DMA   1.3527 Buy
STOCH(5,3)   64.476 Buy
MACD(12,26,9)   -0.0069 Sell

USD/JPY

AAFX TRADING

USD/JPY on Tuesday made intra‐day low of JPY109.36/USD and made an intraday high of JPY110.21/USD and settled the day up by 0.246% at JPY110.00/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.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.

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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