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Daily Market Lookup

  • Asian stock markets rallied on Wednesday as U.S. President Donald trump sounded upbeat about a trade deal with China, while sterling struggled with the risk of an imminent party coup against British Prime Minister Theresa May. In an interview with Reuters, Trump said talks were taking place with Beijing by phone and he would not raise tariffs on Chinese imports until he was sure about a deal. Trump also said he would intervene in the Justice Department's case against a top executive at China's Huawei Technologies [HWT.UL] if it would serve national security interests or help close a trade deal. Having been repeatedly disappointed before, analysts were careful to not get too optimistic about prospects of a trade agreement. Sentiment had got a lift on Tuesday from reports China was considering cutting import tariffs on American-made cars to 15 percent from the current 40 percent. Yet there were also reports the U.S. would release evidence this week detailing Chinese hacking and economic espionage. Markets had also been jolted when Trump threatened to shut down the government over funding for a wall he has promised to build on the southern border with Mexico. The political ructions come a day after her decision to delay a vote in parliament on her Brexit deal for fear of a loss angered many in her party. Investors were also looking ahead to the U.S consumer price report later on Wednesday where an expected slowdown in headline inflation would only reinforce speculation of fewer rate hikes from the Federal Reserve.
  • The British pound edged up on Wednesday in Asia despite headlines that a no-confidence vote is to be called on U.K. Prime Minister Theresa May's leadership of the Conservative party. The news came after May called off Tuesday’s vote on her Brexit deal so she could go back to Brussels and ask for changes to it. Reports on Tuesday said one of May's spokespeople noted that the House vote on May's Brexit deal could be postponed for up to six weeks. Questions about May's future arrived as she made little progress convincing lawmakers in Brussels to amend the terms of her Brexit deal, increasing the prospect of another referendum, or an extension of Article 50, which was triggered in March last year, setting into motion Britain's departure from the European Union. The dollar held near a one-month high against its peers on Wednesday, supported by a rebound in U.S. government bond yields and weakness of the pound as its battering from uncertainty about Brexit continued. Sterling took a big hit at the start of this week after British Prime Minister Theresa May delayed a parliamentary vote on her Brexit deal. The pound suffered further on Tuesday on media reports that May's parliamentary colleagues believed they had sufficient numbers to mount a no-confidence vote in her leadership. The yuan gained on Tuesday on news that Beijing and Washington were discussing the next steps in their trade talks.
  • Oil prices rose on Wednesday in Asia following reports of a production loss of 315,000 barrels per day (bpd) from the El Sharara oilfield, which was seized at the weekend by a local militia group. Meanwhile, Libya's National Oil Company (NOC) reported an additional loss of 73,000 bpd at another oilfield, El Feel. The higher oil prices came amid a broader increase in Asian stock markets after China said it would cut tariffs on cars made in the U.S to 15% from the current 40%. OPEC announced Friday that it would reduce overall production among its members by 1.2 million bpd during the first six months of 2019 to stave off a global glut in supplies and prop up prices.  The producer club will curb output by 0.8 million bpd from October levels, while non-OPEC allies contribute an additional 0.4 million bpd of cuts, in a move to be reviewed at a meeting in April.  Oil prices jumped on Friday following the news, but gave back some of their gains this week, as markets are not convinced the cuts would be sufficient to end oversupply.  U.S. President Donald Trump told Reuters in an interview on Tuesday that talks with China were taking place to defuse the trade dispute between the world's two biggest economies. Despite Tuesday's more confident market, analysts warned of an economic slowdown. Crude prices had lost a third of their value between early October and the announcement of the cuts. Some analysts warn, though, that the agreement may not have the effect hoped for. Undermining the supply cuts is soaring output in the United States, where crude production has hit a record 11.7 million bpd. The United States is set to end 2018 as the world's top oil producer, ahead of Russia and Saudi Arabia, with the U.S. Energy Information Administration (EIA) saying on Tuesday the nation's annualized average output would be 10.88 million bpd for the full year. The 2018 output increase would be 1.53 million bpd, the EIA said, adding that it expected production to average an unprecedented 12.06 million bpd in 2019.

 

 
Intraday RESISTANCE LEVELS
12th December 2018 R1 R2 R3
GOLD-XAU 1,253 1,260-1,266 1,273
Silver-XAG 14.80 15.10 15.50-16.40
Crude Oil 52.50 53.30 54.05-54.90
EURO/USD 1.1400 1.1450 1.1500-1.1560
GBP/USD 1.2600 1.2660 1.2700-1.2760
USD/JPY 113.50 114.00 114.70-115.50

Intraday SUPPORTS LEVELS
12th December 2018 S1 S2 S3
GOLD-XAU 1,230 1,230 1,221-1,214
Silver-XAG 14.30-14.00 13.61 13.00-12.40
Crude Oil 52.00-51.00 50.10 49.50-48.10
EURO/USD 1.1300 1.1260-1.1205 1.1150
GBP/USD 1.2490-1.2430 1.2360 1.2290
USD/JPY 112.70-112.10 111.50 111.00-110.20

Intra-Day Strategy (12th December 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$1229.50/oz and low of US$1240.98/oz. Gold down by 0.112% at US$1242.76/oz.

Technicals in Focus:

In daily charts, prices are below 200DMA (1255) and breakage above will call for 1266-1274. MACD is above zero line and histograms are increasing trend and it will bring upward stance in the upcoming sessions. RSI is in overbought region and more upside 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 1253-1273 keeping stop loss closing above 1273, targeting 1244-1238-1230 and 1221-1214. Buy above 1244-1200 with risk below 1200, targeting 1253-1260 and 1266-1273.

 
Intraday Support Levels
S1     1,230
S2     1,230
S3     1,221-1,214
Intraday Resistance Levels
R1     1,253
R2     1,260-1,266
R3     1,273

Technical Indicators

Name   Value Action
14DRSI  

68.136

Buy
20-DMA   1225.62 Buy
50-DMA  

1221.03

Buy
100-DMA   1211.49 Buy
200-DMA   1255.65 Sell
STOCH(5,3)   87.674 Buy
MACD(12,26,9)   6.601 Buy

Silver - XAG

AAFX TRADING

Silver on Tuesday made its intraday high of US$14.70/oz and low of US$14.49/oz. Silver settled up by 0.206% at US$14.53/oz.

Technicals in Focus:

On daily charts, silver is sustaining below 100DMA (14.66), breakage above will lead to 15.10-15.50. 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 14.30-12.40 targeting 14.90-15.10 and 15.60-16.35; stop breakage below 12.40. Sell below 14.80-17.00 with stop loss above 17.00; targeting 13.90-13.50 and 13.00-12.40.

 
Intraday  Support Levels
S1     14.30-14.00
S2     13.61
S3     13.00-12.40

Intraday  Resistance Levels
R1     14.80
R2     15.10
R3     15.50-16.40

TECHNICAL INDICATORS
Name   Value Action
14DRSI   54.789 Buy
20-DMA   14.35 Buy
50-DMA   14.44 Buy
100-DMA   14.57 Sell
200-DMA   15.47 Sell
STOCH(5,3)   67.708 Buy
MACD(12,26,9)   0.028 Buy

Oil - WTI

AAFX TRADING

Crude Oil on Tuesday made an intra‐day high of US$52.55/bbl, intraday low of US$50.83/bbl and settled up by 1.958% to close at US$52.06/bbl.

Technicals in Focus:

On daily charts, oil is sustaining below its 50DMA i.e. 66.10 which is a resistance level and breakage above will call for 66.80-67.08. MACD is above zero line and histograms are in increasing mode will bring bearish stance in the upcoming sessions. The Stochastic Oscillator is in overbought region and giving negative crossover for confirmation of bearish 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 52.50-55.40 with stop loss at 55.40; targeting 52.00-51.00-50.20 and 49.50-49.00. Buy above 52.00-49.00 with risk daily closing below 49.00 and targeting 52.80-53.30 and 54.05-54.90-55.00.

 
Intraday Support Levels
S1     52.00-51.00
S2     50.10
S3     49.50-48.10

Intraday Resistance Levels
R1     52.50
R2     53.30
R3     54.05-54.90

TECHNICAL INDICATORS
Name   Value Action
14DRSI   38.694 Sell
20-DMA   53.09 Buy
50-DMA   61.67 Buy
100-DMA   65.23 Buy
200-DMA   66.25 Buy
STOCH(5,3)   35.505 Sell
MACD(12,26,9)   -2.737 Buy

EUR/USD

AAFX TRADING

EUR/USD on Tuesday made an intraday low of US$1.1305/EUR, high of US$1.1399/EUR and settled the day down by 0.343% to close at US$1.1315/EUR.

Technicals in Focus:

On daily charts, prices are sustaining below 100DMA (1.1621), which become immediate resistance level, break below will target 1.1690-1.1730. MACD is below zero line but histograms are increasing mode which will bring bullish view. Stochastic is in overbought 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 sell.

Trading Strategy: Neutral to Buy

Buy above 1.1300-1.1160 with risk below 1.1160, targeting 1.1400-1.1450-1.1490 and 1.1540-1.1610. Sell below 1.1400-1.1620 targeting1.1300-1.1260 and 1.1200-1.1160 with stop-loss at daily closing above 1.1620.

 
Intraday Support Levels
S1     1.1300
S2     1.1260-1.1205
S3     1.1150

Intraday  Resistance Levels
R1     1.1400
R2     1.1450
R3     1.1500-1.1560

TECHNICAL INDICATORS
Name   Value Action
14DRSI   45.788 Buy
20-DMA   1.1357 Buy
50-DMA   1.1402 Sell
100-DMA   1.1501 Sell
200-DMA   1.1723 Sell
STOCH(5,3)   19.466 Buy
MACD(12,26,9)   -0.0016 Buy

GBP/USD

AAFX TRADING

GBP/USD on Tuesday made an intra‐day low of US$1.2479/GBP, high of US$1.2638/GBP and settled the day down by 0.557% to close at US$1.2485/GBP.

Technicals in Focus:

On daily charts, prices are sustaining above 100DMA (1.3096) 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 neutral territory and giving positive crossover to confirm bullish stance. MACD is above zero line but histograms are increasing lead to downward movement.

Trading Strategy: Neutral to Buy

Based on the charts and explanations above; sell below 1.2600-1.2810 with targets at 1.2550-1.2490-1.2430 and 1.2360-1.2300. Buy above 1.2550-1.2360 with targets 1.2550-1.2490-1.2430 and 1.2360-1.2300 with stop loss closing below 1.2360.

 
Intraday Support Levels
S1     1.2490-1.2430
S2     1.2360
S3     1.2290

Intraday Resistance Levels
R1     1.2600
R2     1.2660
R3     1.2700-1.2760

TECHNICAL INDICATORS
Name   Value Action
14DRSI  

33.220

Buy
20-DMA   1.2742 Buy
50-DMA   1.2901 Buy
100-DMA   1.2936 Buy
200-DMA   1.3264 Buy
STOCH(5,3)   8.998 Sell
MACD(12,26,9)   -0.009 Sell

USD/JPY

AAFX TRADING

USD/JPY on Tuesday made intra‐day low of JPY113.00/USD and made an intraday high of JPY113.46/USD and settled the day up by 0.0441% at JPY113.36/USD.

Technicals in Focus:

In daily charts, JPY is sustaining above 50DMA (111.82), which is major support on the daily chart. 14-D RSI is currently in overbought region and chances of downward are expected based on RSI. 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.

Trading Strategy: Neutral to Sell

Sell below 113.50-115.50 with risk above 115.50 targeting 112.70-112.10-111.50 and 111.00-110.20. Long positions above 112.70-110.20 with targets of 113.50-114.00 and 114.70-115.50 with stop below 110.50.

 
Intraday Support Levels
S1     112.70-112.10
S2     111.50
S3     111.00-110.20

INTRADAY RESISTANCE LEVELS
R1     113.50
R2     114.00
R3     114.70-115.50

TECHNICAL INDICATORS
Name   Value Action
14DRSI   52.765 Buy
20-DMA   113.19 Sell
50-DMA   113.03 Sell
100-DMA   112.29 Buy
200-DMA   110.65 Buy
STOCH(9,6)   63.013.748 Buy
MACD(12,26,9)   0.0023 Sell

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