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Daily Market Lookup

  • Asian shares rose to seven-month highs on Wednesday as investors lapped up signs of progress in U.S.-China trade talks and brisk economic data, while oil approached the key $70 per barrel mark. The run of gains for stock markets worldwide has also pushed MSCI’s key gauge of global equities to a six-month high. The global index was up 0.2 percent on Wednesday morning. Hopes for a deal to end the trade war between the world’s two largest economies were fanned by fresh comments from White House economic adviser Larry Kudlow that Washington expects “to make more headway” in talks this week. Even so, analysts struggled to point to a clear catalyst for the extended rally in equities. But after a brief consolidation in risk sentiment, U.S. Treasury yields were once again ticking higher. In currency markets, the pound was about 0.1 percent higher at $1.3139, having recovered its footing after British Prime Minister Theresa May said she would seek another delay to Brexit to work out an European Union divorce deal with opposition Labour leader Jeremy Corbyn.
  • The U.S. dollar slipped while the British pound edged up on Wednesday in Asia after U.K. Prime Minister Theresa May said she would ask the EU for an extension to the Brexit deadline. Worries over a no-deal Brexit eased somewhat after May offered cross-party talks with the leader of opposition, Jeremy Corbyn, to break the Brexit logjam. May stressed the extension would be "as short as possible," likely before May 22, to avoid the U.K. having to participate in European elections. Meanwhile, the U.S. dollar index that tracks the greenback against a basket of other currencies slipped 0.2% to 96.768 amid a slowdown in durable goods spending. Durable goods orders fell for the first time in three months, data on Tuesday showed, adding to signs that the slowdown in the U.S. economy at the end of last year could extend. The dollar was steady against its peers on Wednesday, as the recent bounce in U.S. bond yields stalled on increasingly dovish rhetoric from global central banks. The sharp bounce by Treasury yields ran out of steam, however, slowing the dollar's advance in turn. The Reserve Bank of Australia on Tuesday left interest rates unchanged as expected but its statements were seen by some as hints toward a shift to easier monetary policy going forward. German yields have been anchored below zero as the deadlock over Brexit has fueled investor demand for the safe havens.
  • Oil prices rose for a fourth day on Wednesday, with support from OPEC-led supply cuts and U.S. sanctions overshadowing an industry report showing an unexpected rise in U.S. inventories last week. Supply from the Organization of the Petroleum Exporting countries hit a four-year low in March, a Reuters survey found earlier this week. Oil production from Russia, which has joined OPEC in agreeing to supply cuts to prop up prices, fell to 11.3 million barrels per day (bpd) last month, but missed the country's target under the deal. Three of eight countries granted waivers by Washington to import oil from Iran have cut the imports to zero, a U.S. official said on Tuesday, adding that improved global oil market conditions would help reduce Iranian crude exports further. Vice President Mike Pence said on Tuesday the United States would continue to pressure Venezuela's oil industry and those who support it with economic sanctions, citing world oil prices as low enough to allow for the measures. Venezuela's state-run energy company, PDVSA, kept oil exports near 1 million barrels per day in March despite U.S. sanctions and power outages that crippled its main export terminal, according to PDVSA documents and Refinitiv Eikon data, Reuters reported later in the day. U.S. crude stocks rose unexpectedly last week, while gasoline and distillate inventories drew, industry group the American Petroleum Institute said late on Tuesday. Official numbers from the U.S. Department of Energy (DoE) are due out later on Wednesday. News that the United States is considering more sanctions against Iran, the fourth-largest producer in the Organization of the Petroleum Exporting Countries (OPEC), and the halting of production at a crude terminal in Venezuela threatened to squeeze supply and pushed oil prices up on Tuesday.

 

 
Intraday RESISTANCE LEVELS
3rd April 2019 R1 R2 R3
GOLD-XAU 1,294-1,300 1,309 1.316-1,325x
Silver-XAG 15.30-15.60 16.00 16.40-17.00
Crude Oil 63.00-63.60 64.50 65.00-65.60
EURO/USD 1.1270-1.1305 1.1330 1.1350-1.1380
GBP/USD 1.3150 1.3200 1.3250-1.3300
USD/JPY 111.40-111.90 112.50 113.00

Intraday SUPPORTS LEVELS
3rd April 2019 S1 S2 S3
GOLD-XAU 1,284-1,276 1,269 1,261
Silver-XAG 15.00 14.75 14.50-14.00
Crude Oil 62.50-62.00 61.60 61.00-60.20
EURO/USD 1.1200-1.1175 1.1150 1.1100
GBP/USD 1.3070-1.3010 1.2981 1.2900-1.2850
USD/JPY 111.00-110.60 110.02 109.55-109.05

Intra-Day Strategy (3rd April 2019)
GOLD-XAU Buy on Dips
Silver-XAG Buy on Dips
Crude Oil Neutral
EUR/USD Neutral to Buy
GBP/USD Neutral to Sell
USD/JPY Neutral to Sell

Gold – XAU

AAFX TRADING

Gold on Tuesday made its intraday high of US$1292.51/oz and low of US$1285.22/oz. Gold up by 0.375% at US$1292.20/oz.

Technicals in Focus:

In daily charts, prices are above 100DMA (1278) and breakage below will call for 1254-1247. MACD is above zero line and histograms are decreasing trend and it will bring downward stance in the upcoming sessions. RSI is in neutral region and more upside 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: Buy on Dips

Based on the charts and explanations above; buy above 1284-1261 with risk below 1261, targeting 1294-1300-1309 and 1316-1325. Sell below 1294-1325 keeping stop loss closing above 1325, targeting 1284-1276 and 1269-1261.

 
Intraday Support Levels
S1     1,284-1,276
S2     1,269
S3     1,261
Intraday Resistance Levels
R1     1,294-1,300
R2     1,309
R3     1.316-1,325x

Technical Indicators

Name   Value Action
14DRSI  

43.531

Buy
20-DMA   1301.21 Buy
50-DMA  

1307.74

Buy
100-DMA   1280.02 Buy
200-DMA   1247.98 Buy
STOCH(5,3)   12.073 Buy
MACD(12,26,9)   -2.648 Sell

Silver - XAG

AAFX TRADING

Silver on Tuesday made its intraday high of US$15.10/oz and low of US$14.92/oz. Silver settled up by 0.1989% at US$15.10/oz.

Technicals in Focus:

On daily charts, silver is sustaining below200DMA (15.12), breakage above will lead to 15.60. 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: Buy on Dips

Based on the charts and explanations above, buy above 15.00-14.00 targeting 15.30-15.60-15.90 and 16.40-17.00; stop breakage below 14.00. Sell below 15.30-17.00 with stop loss above 17.00; targeting 15.10-14.85-14.50 and 14.00.

 
Intraday  Support Levels
S1     15.00
S2     14.75
S3     14.50-14.00

Intraday  Resistance Levels
R1     15.30-15.60
R2     16.00
R3     16.40-17.00

TECHNICAL INDICATORS
Name   Value Action
14DRSI   40.671 Buy
20-DMA   15.27 Sell
50-DMA   15.53 Sell
100-DMA   15.16 Buy
200-DMA   15.04 Sell
STOCH(5,3)   18.240 Buy
MACD(12,26,9)   -0.0440 Buy

Oil - WTI

AAFX TRADING

Crude Oil on Monday made an intra‐day high of US$61.80/bbl, intraday low of US$60.16/bbl and settled up by 2.659% to close at US$61.76/bl.

Technicals in Focus:

On daily charts, oil is sustaining above its 100DMA i.e. 55.88 which is a resistance level and breakage above will call for 59.60. MACD is above zero line and histograms are in decreasing mode will bring bearish stance in the upcoming sessions. The Stochastic Oscillator is in overbought 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 63.00-65.60 with stop loss at 65.60; targeting 62.50-62.00-61.60 and 61.00-60.20. Buy above 62.50-60.00 with risk daily closing below 60.00 and targeting 63.00-63.60-64.50 and 65.00-65.60.

 
Intraday Support Levels
S1     62.50-62.00
S2     61.60
S3     61.00-60.20

Intraday Resistance Levels
R1     63.00-63.60
R2     64.50
R3     65.00-65.60

TECHNICAL INDICATORS
Name   Value Action
14DRSI   75.192 Sell
20-DMA   59.30 Buy
50-DMA   56.75 Buy
100-DMA   53.90 Buy
200-DMA   61.37 Sell
STOCH(5,3)   97.923 Buy
MACD(12,26,9)   1.078 Sell

EUR/USD

AAFX TRADING

EUR/USD on Tuesday made an intraday low of US$1.1183/EUR, high of US$1.1245/EUR and settled the day down by 0.106% to close at US$1.1203/EUR.

Technicals in Focus:

On daily charts, prices are sustaining below 100DMA (1.1364), which become immediate resistance level, break above will target 1.1560-1.1600. 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 in neutral region and giving no directions to consider.

Trading Strategy: Neutral to Buy

Buy above 1.1200-1.1150 with risk below 1.1100, targeting 1.1270-1.1305-1.1330 and 1.1350-1.1380. Sell below 1.1270-1.1400 targeting 1.1250-1.1200 and 1.1175-1.1150 with stop-loss at daily closing above 1.1400.

 
Intraday Support Levels
S1     1.1200-1.1175
S2     1.1150
S3     1.1100

Intraday  Resistance Levels
R1     1.1270-1.1305
R2     1.1330
R3     1.1350-1.1380

TECHNICAL INDICATORS
Name   Value Action
14DRSI   40.167 Buy
20-DMA   1.1297 Sell
50-DMA   1.1335 Sell
100-DMA   1.1357 Sell
200-DMA   1.1469 Sell
STOCH(5,3)   8.157 Sell
MACD(12,26,9)   -0.009 Buy

GBP/USD

AAFX TRADING

GBP/USD on Monday made an intra‐day low of US$1.3012/GBP, high of US$1.3148/GBP and settled the day up by 0.160% to close at US$1.3123/GBP.

Technicals in Focus:

On daily charts, prices are sustaining above 200DMA (1.2977) 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 approaching 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 Sell

Based on the charts and explanations above; sell below 1.3150-1.3300 with targets at 1.3090-1.3010-1.2980 and 1.2900-1.2850 and stop should be below 1.3300. Buy above 1.3070-1.2850 with targets 1.3150-1.3200 and 1.3250-1.3300 with stop loss closing below 1.2850.

 
Intraday Support Levels
S1     1.3070-1.3010
S2     1.2981
S3     1.2900-1.2850

Intraday Resistance Levels
R1     1.3150
R2     1.3200
R3     1.3250-1.3300

TECHNICAL INDICATORS
Name   Value Action
14DRSI  

50.550

Buy
20-DMA   1.3161 Sell
50-DMA   1.3097 Sell
100-DMA   1.2927 Buy
200-DMA   1.2977 Buy
STOCH(5,3)   54.431 Buy
MACD(12,26,9)   0.0072 Sell

USD/JPY

AAFX TRADING

USD/JPY on Tuesday made intra‐day low of JPY111.24/USD and made an intraday high of JPY111.44/USD and settled the day down by 0.297% at JPY111.30/USD.

Technicals in Focus:

In daily charts, JPY is sustaining above 50DMA (110.42), which is initial 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 in oversold territory and signaling to sell as it has given negative crossover to confirm bearish stance.

Trading Strategy: Neutral to Sell

Sell below 111.40-113.00 with risk above 113.00 targeting 111.00-110.60-110.10 and 109.55-109.05. Long positions above 111.00-107.75 with targets of 111.40-111.90 and 112.25-113.00 with stop below 107.50.

 
Intraday Support Levels
S1     111.00-110.60
S2     110.02
S3     109.55-109.05

INTRADAY RESISTANCE LEVELS
R1     111.40-111.90
R2     112.50
R3     113.00

TECHNICAL INDICATORS
Name   Value Action
14DRSI   50.424 Buy
20-DMA   111.08 Sell
50-DMA   110.51 Buy
100-DMA   111.14 Sell
200-DMA   111.44 Sell
STOCH(9,6)   76.080 Buy
MACD(12,26,9)   0.0465 Buy

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