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Daily Market Lookup

  • Asia stocks inched up but remained near four-month lows on Monday amid concerns about U.S.-China tensions while the euro stayed in a narrow range after the weekend’s European Parliament elections. Chinese shares rose, helped by investor hopes of policy support from Beijing, with the benchmark Shanghai Composite climbing 1.4% and the blue-chip CSI 300 adding 1.3%. Hong Kong’s Hang Seng dropped 0.1%. The euro was a shade higher at $1.1209, holding within a tight $1.2272-$1.2754 range in what was a limited reaction to partial returns in the European parliament elections. Analysts said the single currency’s muted reaction came as the results showed populist and far-right parties in some countries were unlikely to have gathered as much support as anticipated. Parties committed to strengthening the European Union held on to two-thirds of seats in the EU parliament, official projections from the bloc’s elections showed on Sunday, though far-right and nationalist opponents saw strong gains. Macron’s Renaissance, built on the ruins of center-left and center-right parties, added to gains for liberals at the EU level as turnout bounced sharply across the bloc. Along with a surge for the Greens, that meant four groups occupying the pro-EU middle ground lost under 20 seats, securing 505 seats out of 751. A centrist, pro-EU coalition would still be possible in the new chamber that will sit for the first time on July 2. But it would be more difficult to piece together among more numerous partners, according to the European Parliament’s estimates. The longer-term impact of the election, therefore, remained unclear, analysts say.
  • The euro held firm in early Monday trade after pro-European Union parties withstood more fragmentation than before to hold on to two-thirds of seats in the EU parliament elections, limiting gains in nationalist opponents. While center-right and center-left blocs are losing their shared majority, surges in the Greens and liberals meant parties committed to strengthening the union held on to two-thirds of seats, official projections showed The results dented the hopes of anti-immigration, anti-Brussels National Rally led by Marine Le Pen, Italian Deputy Prime Minister Matteo Salvini and others who have been opposing attempts to forge closer EU integration. Trading was seen subdued on Monday due to market holidays in London and New York, limiting moves in other currency pairs. Still, the U.S. currency is not far from a three-month low of 109.02 touched two weeks ago, hit amid worries about escalating tensions between Washington and Beijing over trade and technology. The dollar has been also capped against the yen as U.S. President Donald Trump is seen putting pressure on Japan to take measures to reduce its trade surplus with the United States. Trump, who arrived in Tokyo on Saturday, tweeted on Sunday that much of the trade negotiation with Japan will wait until after the country's election in July. But the prospect of a "no deal" Brexit was fast becoming the central battle of the race among contenders to succeed May, with four of eight leadership hopefuls having said Britain must leave the EU on Oct. 31 even if this means a no-deal Brexit. The U.S. dollar index slipped 0.1% to 97.428, retreating further from two-year peaks, after weaker than expected U.S. economic data added to the view that the economy is losing momentum. A report showing a decline in orders for U.S. durable goods, coming a day after data showing that manufacturing activity hit its lowest level in almost a decade in May, added to fears that the trade dispute with China is hitting growth. Analysts now believe the Federal Reserve might consider cutting rates before the year end amid escalating trade tensions and the release of the recent weak data. Chances of a "no deal" Brexit scenario has increased as four of eight leadership hopefuls said the U.K. must leave the EU on Oct. 31 even if this means a no-deal Brexit. Markets in the U.K and the U.S. are closed on Monday for a holiday.
  • Oil prices fell on Monday, extending losses from last week when crude dropped the most this year on concerns the Sino-U.S. trade war could trigger a broad economic slowdown, although OPEC's supply cuts provided some support. Both crude contracts last week registered their biggest price declines this year amid concerns that the U.S.-China trade dispute could accelerate an international economic slowdown. Beyond financial markets, there are also signs on the ground of a slowdown in growth in oil demand. Amid the trade conflict between the United States and China, profits for China's industrial firms dropped in April on slowing demand and manufacturing activity, according to data published by the National Bureau of Statistics (NBS) on Monday. China's automobile sales, a key driver of global oil demand growth, will reach around 28.1 million units this year, unchanged from levels seen in 2018, when the country's auto market contracted for the first time in more than two decades, state news agency Xinhua reported on Sunday. The outlook for flat car sales may be too optimistic still, as monthly sales have so far declined for 10 consecutive months A bright spot for carmakers, although not for the oil industry, is that sales of new energy vehicles are likely to grow by about 27 percent to hit 1.6 million units, from 1.26 units in 2018, the report said. Bell at Emirates NBD said spot crude prices were prevented from falling further as the market was "pricing in ... lower supplies from OPEC+". A group of producers led by the Organization of the Petroleum Exporting Countries (OPEC), known as OPEC+, has been withholding supply since the start of the year to tighten the market and prop up prices.

 

 
Intraday RESISTANCE LEVELS
27th May 2019 R1 R2 R3
GOLD-XAU 1,284 1,292 1,300-1,309
Silver-XAG 15.05 15.30 15.60-16.00
Crude Oil 59.00-60.00 60.40 60.80-61.20
EURO/USD 1.1250 1.1280 1.1330-1.1360
GBP/USD 1.2750 1.2780-1.2850 1.2900
USD/JPY 110.00-110.60 111.50 112.00-112.50

Intraday SUPPORTS LEVELS
27th May 2019 S1 S2 S3
GOLD-XAU 1,276 1,269 1,260-1,254
Silver-XAG 14.50-14.20 13.90 13.50-13.20
Crude Oil 58.25-57.30 56.50 55.90—55.00
EURO/USD 1.1200-1.1100 1.1070 1.1020-1.0950
GBP/USD 1.2700-1.2600 1.2550 1.2750
USD/JPY 109.50 109.05 108.40-107.70

Intra-Day Strategy (27th May 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 Friday made its intraday high of US$1285.16/oz and low of US$1280.70/oz. Gold up by 0.112% at US$1284.74/oz.

Technicals in Focus:

In daily charts, prices are above 200DMA (1253) and breakage below will call for 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 neutral territory and giving positive crossover to confirm bullish stance for intraday trade.

Trading Strategy: Buy on Dips

Based on the charts and explanations above; buy above 1276-1254 with risk below 1254, targeting 1284-1292 and 1300-1309. Sell below 1284-1319 keeping stop loss closing above 1319, targeting 1269-1261 and 1254-1246.

 
Intraday Support Levels
S1     1,276
S2     1,269
S3     1,260-1,254
Intraday Resistance Levels
R1     1,284
R2     1,292
R3     1,300-1,309

Technical Indicators

Name   Value Action
14DRSI  

49.408

Buy
20-DMA   1282.65 Sell
50-DMA  

1289.45

Sell
100-DMA   1296.41 Sell
200-DMA   1257.65 Buy
STOCH(5,3)   50.505 Buy
MACD(12,26,9)   1.70 Sell

Silver - XAG

AAFX TRADING

Silver on Friday made its intraday high of US$14.59/oz and low of US$14.52/oz. Silver settled up by 0.013% at US$14.52/oz.

Technicals in Focus:

On daily charts, silver is sustaining below200DMA (14.94), 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 overbought 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 14.50-13.50 targeting 15.05-15.30 and 15.60-15.90; stop breakage below 13.50. Sell below 14.50-16.00 with stop loss above 16.00; targeting 14.20-13.90 and 13.50-13.20.

 
Intraday  Support Levels
S1     14.50-14.20
S2     13.90
S3     13.50-13.20

Intraday  Resistance Levels
R1     15.05
R2     15.30
R3     15.60-16.00

TECHNICAL INDICATORS
Name   Value Action
14DRSI   43.023 Buy
20-DMA   14.67 Sell
50-DMA   14.95 Sell
100-DMA   15.26 Sell
200-DMA   14.89 Sell
STOCH(5,3)   79.246 Buy
MACD(12,26,9)   -0.138 Buy

Oil - WTI

AAFX TRADING

Crude Oil on Friday made an intra‐day high of US$59.06/bbl, intraday low of US$57.50/bbl and settled up by 1.366% to close at US$58.98/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 oversold 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 59.00-61.20 with stop loss at 61.20; targeting 58.25-57.30-56.50 and 55.90-55.00. Buy above 58.25-55.00 with risk daily closing below 55.00 and targeting 59.00-60.00-61.20 and 62.00-62.50.

 
Intraday Support Levels
S1     58.25-57.30
S2     56.50
S3     55.90—55.00

Intraday Resistance Levels
R1     59.00-60.00
R2     60.40
R3     60.80-61.20

TECHNICAL INDICATORS
Name   Value Action
14DRSI   35.145 Sell
20-DMA   61.93 Buy
50-DMA   62.14 Buy
100-DMA   58.29 Buy
200-DMA   60.23 Buy
STOCH(5,3)   14.130 Sell
MACD(12,26,9)   -0.5833 Sell

EUR/USD

AAFX TRADING

EUR/USD on Friday made an intraday low of US$1.1170/EUR, high of US$1.1211/EUR and settled the day up by 0.217% to close at US$1.1205/EUR.

Technicals in Focus:

On daily charts, prices are sustaining below 50DMA (1.1261), which become immediate resistance level, break above will target 1.1325-1.1410. 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 in neutral region and giving no directions to consider.

Trading Strategy: Neutral to Buy

Buy above 1.1100-1.0950 with risk below 1.0950, targeting 1.1200-1.1250 and 1.1280-1.1305-1.1350. Sell below 1.1200-1.1360 targeting 1.1100-1.1070 and 1.1020-1.0950 with stop-loss at daily closing above 1.0950.

 
Intraday Support Levels
S1     1.1200-1.1100
S2     1.1070
S3     1.1020-1.0950

Intraday  Resistance Levels
R1     1.1250
R2     1.1280
R3     1.1330-1.1360

TECHNICAL INDICATORS
Name   Value Action
14DRSI   51.417 Buy
20-DMA   1.1191 Sell
50-DMA   1.1228 Sell
100-DMA   1.1294 Sell
200-DMA   1.1386 Sell
STOCH(5,3)   93.157 Buy
MACD(12,26,9)   -0.001 Buy

GBP/USD

AAFX TRADING

GBP/USD on Friday made an intra‐day low of US$1.2646/GBP, high of US$1.2732/GBP and settled the day up by 0.450% to close at US$1.2712/GBP.

Technicals in Focus:

On daily charts, prices are sustaining above 200DMA (1.2960) 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 bearish 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 1.2750-1.2890 with targets at 1.2700-1.2660-1.2600 and 1.2550-1.2500 stop should be below 1.2890. Buy above 1.2700-1.2450 with targets 1.2750-1.2850 and 1.2890-1.2930 with stop loss closing below 1.2500.

 
Intraday Support Levels
S1     1.2700-1.2600
S2     1.2550
S3     1.2750

Intraday Resistance Levels
R1     1.2750
R2     1.2780-1.2850
R3     1.2900

TECHNICAL INDICATORS
Name   Value Action
14DRSI  

36.544

Buy
20-DMA   1.2899 Buy
50-DMA   1.2995 Sell
100-DMA   1.3013 Buy
200-DMA   1.2953 Buy
STOCH(5,3)   47.996 Buy
MACD(12,26,9)   -0.0011 Sell

USD/JPY

AAFX TRADING

USD/JPY on Friday made intra‐day low of JPY109.26/USD and made an intraday high of JPY109.73/USD and settled the day down by 0.680% at JPY109.29/USD.

Technicals in Focus:

In daily charts, JPY is sustaining above 100DMA (110.64), 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 110.00-113.00 with risk above 113.00 targeting 109.55-109.05 and 108.40-107.70. Long positions above 109.50-107.70 with targets of 110.00-110.60-111.5 and 111.90-112.25 with stop below 107.50.

 
Intraday Support Levels
S1     109.50
S2     109.05
S3     108.40-107.70

INTRADAY RESISTANCE LEVELS
R1     110.00-110.60
R2     111.50
R3     112.00-112.50

TECHNICAL INDICATORS
Name   Value Action
14DRSI   38.291 Buy
20-DMA   110.19 Sell
50-DMA   111.89 Sell
100-DMA   110.54 Buy
200-DMA   111.40 Sell
STOCH(9,6)   11.955 Sell
MACD(12,26,9)   -0.466 Buy

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