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Daily Market Lookup

  • Asian stocks slipped to 14-month lows on Wednesday, as investor confidence was chilled by the latest round of verbal threats in an intensifying U.S.-China trade conflict.The mood was dimmed by the verbal sparring between Washington and Beijing as the months-long escalation in trade tensions between the world's two biggest economies took their toll on riskier assets. China told the World Trade Organization (WTO) on Tuesday it wanted to impose $7 billion a year in sanctions on the United States in retaliation for Washington's non-compliance with a ruling in a dispute over U.S. dumping duties. Separately, U.S. President Donald Trump told reporters on Tuesday that the United States was taking a tough stance with China. Asian equities and the broader emerging markets have faced persistent selling pressure over recent months in the wake of the trade tensions and concerns about the crises in Turkey and Argentina. MSCI's index of emerging market shares (MSCIEF) has fallen to its lowest level since May 2017. El-Erian expects the United States to eventually secure trade concessions. He sees a 60 percent probability of "slightly fairer but and still free trade," a 25 percent possibility of a global trade war and 15 percent likelihood of a "Reagan Moment" that significantly improves the landscape for international trade." While still shaky, both the peso and the lira have pulled back from record lows plumbed over the past month.
  • The dollar fell on Wednesday as sources said Canada was ready to make a concession to the United States to resolve their talks over reworking the North American Free Trade Agreement, though lingering anxiety over U.S.-China trade tensions weighed. China will ask the World Trade Organization next week for permission to impose sanctions on the United States for Washington's non-compliance with a ruling in a dispute over U.S. dumping duties. The dollar traded slightly lower after two Canadian sources with direct knowledge of Ottawa's negotiating strategy said overnight Ottawa was ready to offer the United States limited access to the Canadian dairy market as a concession in negotiations to remake NAFTA. Turkey's lira was largely stable ahead of a closely-watched meeting on Thursday by the country's central bank, where the monetary policy committee is expected to raise interest rates.
  • European Commission President Jean-Claude Juncker will call for the EU to promote the euro as a global currency to challenge the U.S. dollar as he presents his annual program to the European Parliament on Wednesday, a senior EU official said. Among his concerns are the pricing of most EU energy imports in dollars even though only a tiny proportion come from the United States. With "political will", the official said, Juncker believed that more euro pricing was possible. While Norway prices its substantial supplies to the EU in euros, the official said, other countries use dollars. Among the most important of these are Gulf states and Russia. With the United States under President Donald Trump seeming to pull back from international engagements, the European Union could find it a favorable moment to spread the euro, the official said ahead of Juncker's State of the Union speech.
  • Oil prices rose on Wednesday following a report that crude inventories in the United States fell and as looming sanctions against Iran raised expectations of tightening supplies, with top producer Russia warning of a "fragile" global crude market U.S. crude stocks fell by 8.6 million barrels in the week to Sept. 7 to 395.9 million barrels, the American Petroleum Institute (API), a private industry group, said on Tuesday. Official weekly government data will be published by the U.S. Energy Information Administration (EIA) on Wednesday. Outside the United States, traders have been focusing on the impact of U.S. sanctions against Iran that will target oil exports from November. Washington has put pressure on other governments to also cut imports, and many countries and companies are already falling in line and reducing purchases, triggering expectations of a tighter market. Russian energy minister Alexander Novak on Wednesday warned of the impact the U.S. sanctions against Iran. Novak said global oil markets were "fragile" due to geopolitical risk and supply disruptions, but added his country could raise output if needed. That month Russia produced 11.247 million barrels per day, a post-Soviet Union record high. Crude prices were also pushed up by Hurricane Florence offshore the United States amid surging demand for gasoline and diesel. The storm is expected to make landfall on the U.S. East Coast on Friday, and has caused fuel shortages as millions of households and businesses have evacuated.

 

 
Intraday RESISTANCE LEVELS
12th September 2018 R1 R2 R3
GOLD-XAU 1,207-1,214 1,220 1,227-1,235
Silver-XAG 14.40-14.80 15.10 15.50-16.40
Crude Oil 70.00 70.60-71.10 72.00
EURO/USD 1.1610 1.1660 1.1690-1.1760
GBP/USD 1.3140 1.3140 1.3200
USD/JPY 112.00-112.50 113.20 114.00

Intraday SUPPORTS LEVELS
12th September 2018 S1 S2 S3
GOLD-XAU 1,191-1,182 1,174 1,166
Silver-XAG 14.00-13.61 13.00 12.40
Crude Oil 69.00-68.50 68.00 67.60-67.00
EURO/USD 1.1540 1.1510 1.1450-1.1400
GBP/USD 1.2990-1.2950 1.2870 1.2800-1.2750
USD/JPY 111.00-110.70 110.20 109.80-109.30

Intra-Day Strategy (12th September 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$1199.28/oz and low of US$1187.66/oz. Gold up by 0.260% at US$1198.53/oz.

Technicals in Focus:

In daily charts, prices are below 50DMA (1227) and breakage above will call for1240-1260. 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 neutral 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 1200-1235 keeping stop loss closing above 1235, targeting 1196-1189-1180 and 1172-1166.Buy above 1196-1172with risk below 1172, targeting1207-1214 and 1220-1227-1235.

 
Intraday Support Levels
S1     1,191-1,182
S2     1,174
S3     1,166
Intraday Resistance Levels
R1     1,207-1,214
R2     1,220
R3     1,227-1,235

Technical Indicators

Name   Value Action
14DRSI  

44.421

Buy
20-DMA   1194.85 Sell
50-DMA  

1215.35

Sell
100-DMA   1254.75 Sell
200-DMA   1286.41 Sell
STOCH(5,3)   38.361 Sell
MACD(12,26,9)   -4.941 Buy

Silver - XAG

AAFX TRADING

Silver on Tuesday made its intraday high of US$14.21/oz and low of US$13.92/oz. Silver settled up by 0.0495% at US$14.12/oz.

Technicals in Focus:

On daily charts, silver is sustaining below 200DMA (16.69), breakage above will lead to17.25-17.70. 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 overbought 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 14.00-12.40 targeting 14.40-14.90-15.10 and 15.60-16.35; stop breakage below 13.00. Sell below 14.50-17.00 with stop loss above17.00; targeting 14.50-13.90 and 13.50-13.30.

 
Intraday  Support Levels
S1     14.00-13.61
S2     13.00
S3     12.40

Intraday  Resistance Levels
R1     14.40-14.80
R2     15.10
R3     15.50-16.40

TECHNICAL INDICATORS
Name   Value Action
14DRSI   31.863 Buy
20-DMA   14.55 Sell
50-DMA   15.17 Sell
100-DMA   15.81 Sell
200-DMA   16.21 Sell
STOCH(5,3)   26.954 Buy
MACD(12,26,9)   -0.223 Buy

Oil - WTI

AAFX TRADING

Crude Oil on Tuesday made an intra‐day high of US$69.76/bbl, intraday low of US$67.37/bbl and settled up by 3.24% to close at US$69.58/bbl.

Technicals in Focus:

On daily charts, oil is sustaining below its 50DMA i.e. 61.15which is a major resistance and breakage above will call for62.20-62.80. 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 70.00-72.00 with stop loss at 72.00; targeting 69.00-68.50-67.60-67.00 and 66.50-65.70.Buy above 69.00-67.00 with risk daily closing below 67.00 and targeting 69.20-70.00 and 70.70.

 
Intraday Support Levels
S1     69.00-68.50
S2     68.00
S3     67.60-67.00

Intraday Resistance Levels
R1     70.00
R2     70.60-71.10
R3     72.00

TECHNICAL INDICATORS
Name   Value Action
14DRSI   58.251 Sell
20-DMA   68.05 Buy
50-DMA   68.26 Buy
100-DMA   68.49 Buy
200-DMA   65.46 Buy
STOCH(5,3)   61.032 Buy
MACD(12,26,9)   0.329 Sell

EUR/USD

AAFX TRADING

EUR/USD on Tuesday made an intraday low of US$1.1564/EUR, high of US$1.1643/EUR and settled the day up by 0.129% to close at US$1.1604/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 oversold territory and giving negative crossovers to signal for bearish outlook for intraday. 14D RSI is currently approaching oversold region and giving wards directions to consider sell.

Trading Strategy: Neutral to Buy

Buy above 1.1510-1.1295 with risk below 1.1250, targeting 1.1540-1.1610-1.1660 and 1.1720-1.1800. Sell below 1.1540-1.1800 targeting 1.1540-1.1450-1.1400 and 1.1360-1.1320 with stop-loss at daily closing above 1.1800.

 
Intraday Support Levels
S1     1.1540
S2     1.1510
S3     1.1450-1.1400

Intraday  Resistance Levels
R1     1.1610
R2     1.1660
R3     1.1690-1.1760

TECHNICAL INDICATORS
Name   Value Action
14DRSI   52.800 Buy
20-DMA   1.1587 Sell
50-DMA   1.1609 Sell
100-DMA   1.1684 Sell
200-DMA   1.1947 Sell
STOCH(5,3)   51.565 Sell
MACD(12,26,9)   -0.0004 Buy

GBP/USD

AAFX TRADING

GBP/USD on Tuesday made an intra‐day low of US$1.2963/GBP, high of US$1.3086/GBP and settled the day up by 0.0383% to close at US$1.3029/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 overbought 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; sell below 1.3060-1.3200 with targets at 1.2990-1.2950-1.2870 and 1.2800-1.2750. Buy above 1.2990-1.2700 with targets 1.3060-1.3100 and 1.3140-1.3200 with stop loss closing below 1.2700.

 
Intraday Support Levels
S1     1.2990-1.2950
S2     1.2870
S3     1.2800-1.2750

Intraday Resistance Levels
R1     1.3140
R2     1.3140
R3     1.3200

TECHNICAL INDICATORS
Name   Value Action
14DRSI  

57.816

Buy
20-DMA   1.2883 Buy
50-DMA   1.3000 Buy
100-DMA   1.3201 Buy
200-DMA   1.3527 Buy
STOCH(5,3)   75.816 Sell
MACD(12,26,9)   -0.0029 Sell

USD/JPY

AAFX TRADING

USD/JPY on Tuesday made intra‐day low of JPY111.05/USD and made an intraday high of JPY111.63/USD and settled the day up by 0.468% at JPY111.61/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 buy as it has given positive crossover to confirm bullish stance.Sell below 112.00-114.00 with risk above 114.00 targeting 111.00-110.70-110.20 and 109.80-109.00. Long positions above 111.00-109.40 with targets of 112.00-112.50 and 113.50-114.00 with stop below 107.00.

Trading Strategy: Neutral to Sell

Sell below 112.00-114.00 with risk above 114.00 targeting 111.00-110.70-110.20 and 109.80-109.00. Long positions above 111.00-109.40 with targets of 112.00-112.50 and 113.50-114.00 with stop below 107.00.

 
Intraday Support Levels
S1     111.00-110.70
S2     110.20
S3     109.80-109.30

INTRADAY RESISTANCE LEVELS
R1     112.00-112.50
R2     113.20
R3     114.00

TECHNICAL INDICATORS
Name   Value Action
14DRSI   37.650 Buy
20-DMA   110.97 Buy
50-DMA   111.23 Buy
100-DMA   110.53 Buy
200-DMA   109.78 Buy
STOCH(9,6)   37.885 Buy
MACD(12,26,9)   -0.001 Sell

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