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Daily Market Lookup

  • Asian stocks hit a six-week high on Thursday on hopes for a thaw in U.S.-China trade frictions and expectations that the European Central Bank would kick off another wave of monetary easing by global central banks. Chinese stocks rose and the yuan hit a three-week high after U.S. President Donald Trump agreed to delay an additional increase in tariffs on Chinese goods by two weeks at the request of China’s Vice Premier Liu He “as a gesture of good will. Investors also await an ECB meeting later on Thursday to see how far policymakers will go to support a flagging economy, given the risks posed by Britain’s divorce from the European Union, commonly referred to as Brexit. Trump’s delay of additional tariffs on Chinese goods comes one day after China said it would exempt 16 types of U.S. products from import tariffs. The world’s two largest economies have been locked in a year-long battle over Beijing’s trade practices that has threatened to push other economies into recession. The gestures of goodwill raise hopes both sides can narrow their differences before working-level talks resume in mid-September and high-level trade negotiations that are expected in October Germany is at risk of falling into recession and inflation expectations sliding, but ECB President Mario Draghi, who hands over the leadership of the central bank to Christine Lagarde at the end of October, will face resistance to aggressive easing from more conservative ECB members.
  • An exchange of olive branches between Washington and Beijing on trade pushed the dollar to a six-week high against the safe-haven yen on Thursday and also supported the risk-sensitive currencies of China, Australia and South Korea. bThe world's two largest economies granted concessions in their heated tariff dispute on Wednesday ahead of planned talks. China exempted a basket of U.S. goods from its own tariffs while U.S. President Donald Trump said he would delay a scheduled tariff hike by two-weeks in October. The other major driver for currency markets on Thursday is a meeting of the European Central Bank, where expectations of easing have weakened the euro. With growth slowing, the ECB has all but promised more support for the economy in one of the most closely watched meetings in years. The ECB is almost certain to cut rates, promise to keep rates low for longer and provide banks relief from the side effects of negative rates. However, new asset purchases, priced in by markets, are not a done deal with some conservative policymakers opposing the move. Sterling also dipped after a Scottish court ruled on Wednesday that Prime Minister Boris Johnson's suspension of the British Parliament was unlawful, prompting immediate calls for lawmakers to return to work as the government and Parliament battle over the future of Brexit.
  • Oil prices jumped on Thursday, bouncing back from heavy losses in the previous session, buoyed by moves to ease trade tensions between Washington and Beijing and a drop in U.S. crude inventories to the lowest in nearly a year. The rise came after China moved to exempt some U.S. anti-cancer drugs and other goods from tariffs, while President Donald Trump announced a delay to scheduled tariff hikes on billions of dollars' worth of Chinese goods. The concessions came days ahead of a planned meeting aimed at defusing the long-running trade row between the world's two largest economies. Trump's move is "a significant goodwill gesture that he too is willing to negotiate to put an end to this trade war spat," said Stephen Innes, Asia Pacific market strategist at AxiTrader. The price upswing on Thursday came after both of the principal global benchmarks fell sharply in the previous following a report that President Trump had weighed easing sanctions on Iran, a move that would potentially boost global crude supply at a time of rising concerns about oil demand. Boosting the market's good mood, the U.S. Energy Information Administration said on Wednesday that U.S. crude oil stockpiles fell last week to the lowest in nearly a year, as refineries raised output and imports fell. [EIA/S] Crude inventories fell for a fourth straight week, decreasing 6.9 million barrels in the week to Sept. 6 - more than double analysts' expectations of a 2.7 million-barrel drawdown. At 416.1 million barrels, U.S. crude oil inventories were at their lowest since October 2018, and about 2% below the five-year average for this time of year, the EIA said.

 

 
Intraday RESISTANCE LEVELS
12th September 2019 R1 R2 R3
GOLD-XAU 1,500-1,509 1,520 1532-1,539
Silver-XAG 18.10-18.60 18.90 19.50-20.00
Crude Oil 56.50-57.60 58.00 58.80-59.50
EURO/USD 1.1050 1.1070 1.1100-1.1150
GBP/USD 1.2350-1.2400 1.2440 1.2525
USD/JPY 108.20-108.90 109.55 110.00

Intraday SUPPORTS LEVELS
12th September 2019 S1 S2 S3
GOLD-XAU 1,490-1,480 1,469 1,460
Silver-XAG 17.90-17.50 16.70 16.00
Crude Oil 56.05 55.40-54.50 53.60
EURO/USD 1.1030-1.0940 1.0910 1.0860-1.0815
GBP/USD 1.2310-1.2250 1.2190 1.2100-1.2065¬
USD/JPY 107.60-107.00 106.50 106.10-105.60

Intra-Day Strategy (12th September 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 Wednesday made its intraday high of US$1498.12/oz and low of US$1485.06/oz. Gold down by 0.764% at US$1496.64/oz.

Technicals in Focus:

In daily charts, prices are above 20DMA (1506) and breakage below will call for 1400. MACD is above zero line and histograms are decreasing trend and it will bring downward 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 negative crossover to confirm bearish stance for intraday trade.

Trading Strategy: Buy on Dips

Based on the charts and explanations above; buy above 1490-1460 with risk below 1460, targeting 1500-1509-1520 and 1532-1539. Sell below 1500-1539 keeping stop loss closing above 1539, targeting 1489-1480 and 1469-1460.

 
Intraday Support Levels
S1     1,490-1,480
S2     1,469
S3     1,460
Intraday Resistance Levels
R1     1,500-1,509
R2     1,520
R3     1532-1,539

Technical Indicators

Name   Value Action
14DRSI  

54.734

Buy
20-DMA   1519.38 Buy
50-DMA  

1469.76

Buy
100-DMA   1394.97 Buy
200-DMA   1342.37 Buy
STOCH(5,3)   5.519 Sell
MACD(12,26,9)   5.325 Buy

Silver - XAG

AAFX TRADING

Silver on Wednesday made its intraday high of US$18.22/oz and low of US$17.87/oz. Silver settled up by 0.634% at US$18.09/oz.

Technicals in Focus:

On daily charts, silver is sustaining above 50DMA (15.70), breakage below will lead to 15.20. MACD is above zero line and histograms are increasing trend and it will bring bullish stance in the upcoming sessions. RSI is in overbought 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 17.90-16.70 targeting 18.20-18.60-18.90 and 19.50-20.00; stop breakage below 16.90. Sell below 18.20-20.50 with stop loss above 20.50; targeting 17.90-17.50-16.80 and 16.00.

 
Intraday  Support Levels
S1     17.90-17.50
S2     16.70
S3     16.00

Intraday  Resistance Levels
R1     18.10-18.60
R2     18.90
R3     19.50-20.00

TECHNICAL INDICATORS
Name   Value Action
14DRSI   53.718 Buy
20-DMA   17.89 Buy
50-DMA   16.79 Buy
100-DMA   15.82 BuyBuy
200-DMA   15.55 Buy
STOCH(5,3)   8.246 Buy
MACD(12,26,9)   0.478 Buy

Oil - WTI

AAFX TRADING

Crude Oil on Wednesday made an intra‐day high of US$58.17/bbl, intraday low of US$55.50/bbl and settled downd by 3.345% to close at US$55.83/bbl. 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.

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 56.50-60.30 with stop loss at 60.30; targeting 56.05-55.40 and 54.90-54.50-53.60. Buy above 56.50-53.60 with risk daily closing below 53.60 and targeting 56.50-57.00-58.00 and 58.80-59.50.

 
Intraday Support Levels
S1     56.05
S2     55.40-54.50
S3     53.60

Intraday Resistance Levels
R1     56.50-57.60
R2     58.00
R3     58.80-59.50

TECHNICAL INDICATORS
Name   Value Action
14DRSI   51.413 Sell
20-DMA   55.62 Buy
50-DMA   56.09 Buy
100-DMA   57.19 Sell
200-DMA   56.34 Buy
STOCH(5,3)   51.130 Sell
MACD(12,26,9)   -0.263 Sell

EUR/USD

AAFX TRADING

EUR/USD of Wednesday made an intraday low of US$1.09845/EUR, high of US$1.1054/EUR and settled the day down by 0.298% to close at US$1.1009/EUR.

Technicals in Focus:

On daily charts, prices are sustaining below 100DMA (1.1293), which become immediate resistance level, break above will target 1.1320-1.1350. MACD is below zero line but histograms are increasing mode which will bring bullish view. Stochastic is in overbought 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 1.1010-1.0815 with risk below 1.0815, targeting 1.1050-1.1070 and 1.1160-1.1200. Sell below 1.1050-1.1150 targeting 1.1020-1.0960-1.0910 and 1.0860-1.0815 with stop-loss at daily closing above 1.1150.

 
Intraday Support Levels
S1     1.1030-1.0940
S2     1.0910
S3     1.0860-1.0815

Intraday  Resistance Levels
R1     1.1050
R2     1.1070
R3     1.1100-1.1150

TECHNICAL INDICATORS
Name   Value Action
14DRSI   43.422 Buy
20-DMA   1.1061 Sell
50-DMA   1.1142 Sell
100-DMA   1.1185 Sell
200-DMA   1.1263 Sell
STOCH(5,3)   68.958 Buy
MACD(12,26,9)   -0.003 Buy

GBP/USD

AAFX TRADING

GBP/USD on Wednesday made an intra‐day low of US$1.2311/GBP, high of US$1.2370/GBP and settled the day down by 0.153% to close at US$1.2325/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 1.2350-1.2525 with targets at 1.2310-1.2250-1.2190 and 1.2100-1.2065-1.2010 stop-loss should be below 1.2400. Buy above 1.2310-1.2065 with targets 1.2250-1.2300 and 1.2350-1.2400 with stop loss closing below 1.1800.

 
Intraday Support Levels
S1     1.2310-1.2250
S2     1.2190
S3     1.2100-1.2065¬

Intraday Resistance Levels
R1     1.2350-1.2400
R2     1.2440
R3     1.2525

TECHNICAL INDICATORS
Name   Value Action
14DRSI  

57.754

Buy
20-DMA   1.2172 Sell
50-DMA   1.2298 Sell
100-DMA   1.2542 Sell
200-DMA   1.2747 Sell
STOCH(5,3)   95.175 Buy
MACD(12,26,9)   -0.0004 Sell

USD/JPY

AAFX TRADING

USD/JPY on Wednesday made intra‐day low of JPY107.48/USD and made an intraday high of JPY107.85/USD and settled the day up by 0.244% at JPY107.78/USD.

Technicals in Focus:

In daily charts, JPY is sustaining above 50DMA (107.84), 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 107.60-109.55 with risk above 109.55 targeting 107.00-106.50-106.10 and 105.80-105.00-104.50. Long positions above 107.10-105.00 with targets of 107.60-108.20 and 108.90-109.55 with stop below 105.00.

 
Intraday Support Levels
S1     107.60-107.00
S2     106.50
S3     106.10-105.60

INTRADAY RESISTANCE LEVELS
R1     108.20-108.90
R2     109.55
R3     110.00

TECHNICAL INDICATORS
Name   Value Action
14DRSI   56.821 Buy
20-DMA   106.35 Sell
50-DMA   107.13 Sell
100-DMA   108.21 Buy
200-DMA   109.52 Sell
STOCH(9,6)   88.253 Buy
MACD(12,26,9)   -0.002 Buy

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