AAFX TRADING

Daily Market Lookup

  • The dollar steadied in early European trade Tuesday, as traders looked again at the impact of the Covid-19 surge after Monday’s euphoric turn away from safe havens in the wake of Pfizer’s vaccine news. The news from Pfizer (NYSE:PFE), and its partner BioNTech, that data from their phase III trial suggests their vaccine is “90% effective in preventing Covid-19” prompted a rush into risker currencies Monday as traders saw this as the first step towards the global economy returning to normalcy. However, a degree of caution has returned to the foreign exchange market in the course of 16 hours of reflection. There also remain key questions over the U.S. presidential election, with incumbent Donald Trump showing no signs of conceding. Trump is completely within his rights to look into “irregularities” from the election, Senate Majority Leader Mitch McConnell said on Monday, while again voicing his resistance to the Democrats' plan for a large coronavirus relief package. Just over 59,000 Covid-19 patients were in hospitals across the United States on Monday, according to Reuters data. This is the country's highest number ever of in-patients being treated for the disease, as new infections remained above 100,000 for the sixth consecutive day. This represents more turmoil in a country which has seen its currency losing about 30% against the dollar in 2020.
  • The dollar was down on Tuesday morning in Asia over Monday’s news that a COVID-19 vaccine could become available relatively soon and raising optimism over the global economic recovery. U.S. drugmaker Pfizer Inc (NYSE:PFE) said on Monday that its vaccine candidate, which is being developed in partnership with Germany’s BioNTech (F:22UAy), was more than 90% effective in preventing COVID-19. The claim was based on data from the first 94 people to be infected with the virus in Pfizer's large-scale clinical trial Coming as the number of global COVID-19 cases surpassed the 50.8 million mark on Nov. 10, with over 10 million cases in the U.S. alone, according to data from Johns Hopkins University, the news increased hopes that a COVID-19 cure would become available soon. However, some investors cautioned against popping the champagne too soon, with questions about the vaccine’s efficacy and the length of immunity provided still to be answered. Data released earlier in the day showed that October’s Consumer Price Index (CPI) and the Producer Price Index both saw smaller-than-expected growth year-on-year, and the CPI also saw smaller-than-expected growth month-on-month. On the vaccines front, a final stage trial in Brazil for Sinovac Biotech Ltd (NASDAQ:SVA) vaccine candidate Coronavac was halted in Brazil due to a serious adverse event that occurred on Oct. 29. Meanwhile, President-elect Joe Biden continues to face challenges from incumbent Donald Trump, who shows no signs of conceding. Trump is also planning rallies to boost support for his legal challenges to the presidential election results. Trump is completely within his rights to look into “irregularities” from the election, Senate Majority Leader Mitch McConnell said on Monday.
  • Oil was down on Tuesday morning in Asia, losing some of Monday’s large gains. Prices had jumped over 8% on positive news from a major COVID-19 vaccine trial. Markets across the globe surged yesterday on news from Pfizer 's (NYSE:PFE) COVID-19 vaccine trials that suggests a 90% effectiveness rate. Both Brent and WTI futures moved above the $40 mark earlier in the sessions, with WTI futures since moving back below the price mark. However, the reality of short-term demand concerns pulled prices back somewhat in Asia on Tuesday morning, as the vaccine has yet to demonstrate other key points such as safety and the duration of conferred immunity The COVID-19 pandemic continues to rage across the globe, with lockdowns across Europe and soaring cases in the U.S., where total cases have now passed 10 million and daily new cases of 120,000, according to data from Johns Hopkins University. As such, the global demand outlook is still grim, and likely to become worse well before it improves. Prices were given a boost from Saudi Arabia’s energy minister Prince Abdulaziz bin Salman, who said on Monday that the Organization of Petroleum Exporting Countries and their allies (OPEC+) might further regulate their output if required. OPEC+ will next meet on November 30 and December 1. However, concerns that the incoming U.S. presidential administration might allow more Venezuelan and Iranian oil back onto the global market are also negative factors on the supply side. Investors now await crude oil supply data from the American Petroleum Institute, due later in the day.

 

 
Intraday RESISTANCE LEVELS
10th November 2020 R1 R2 R3
GOLD-XAU 1,900-1,916 1,933 1,940-1,953
Silver-XAG 24.40-24.95 25.65 26.05-26.80
Crude Oil 41.00-41.90 42.50 43.00-43.90
EURO/USD 1.1900 1.1950 1.1970-1.2000
GBP/USD 1.3190 1.3250 1.3290-1.3340
USD/JPY 105.40-105.90 106.40 106.95-107.50

Intraday SUPPORTS LEVELS
10th November 2020 S1 S2 S3
GOLD-XAU 1,882-1,874 1,860 1,848-1.840
Silver-XAG 23.90-23.20 22.60 22.00-21.60
Crude Oil 40.35-39.40 38.90 37.90-37.00
EURO/USD 1.1860-1.1790 1.1750 1.1710-1.1635
GBP/USD 1.3150-1.3100 1.3020 1.2950-1.2820
USD/JPY 105.00-104.50 103.90 103.10-102.50

Intra-Day Strategy (10th November 2020)
GOLD-XAU Buy on Dips
Silver-XAG Buy on Dips
Crude Oil Neutral to Buy
EUR/USD Neutral to Buy
GBP/USD Neutral to Sell
USD/JPY Neutral to Sell

Gold – XAU

AAFX TRADING

Gold on Monday made its intraday high of US$1965.49/oz and low of US$1850.31/oz. Gold down 4.75% at US$1861.15/oz.

Technicals in Focus:

In daily charts, prices are above 50DMA (1882) and breakage below will call for 1805. MACD is above zero line and histograms are also increasing trend and it will bring upward stance in the upcoming sessions. RSI is in neutral region and more upside is expected before it gets stretched. Stochastic Oscillator is in overbought territory and giving positive crossover to bullish stance for intraday trade.

Trading Strategy: Buy on Dips

Based on the charts and explanations above; buy above 1882-1848 with risk below 1848, targeting 1900-1909-1916 and 1933-1959-1967. Sell below 1900-1967 keeping stop loss closing above 1967, targeting 1880-1867-1860 and 1848.

 
Intraday Support Levels
S1     1,882-1,874
S2     1,860
S3     1,848-1.840
Intraday Resistance Levels
R1     1,900-1,916
R2     1,933
R3     1,940-1,953

Technical Indicators

Name   Value Action
14DRSI  

46.912

Buy
20-DMA   1901.45 Buy
50-DMA  

1909.83

Buy
100-DMA   1900.40 Buy
200-DMA   1780.87 Buy
STOCH(5,3)   39.503 Sell
MACD(12,26,9)   -1.276 Sell

Silver - XAG

AAFX TRADING

Silver on Monday made its intraday high of US$25.99/oz and low of US$23.56/oz settled down by 6.356% at US$24.05/oz.

Technicals in Focus:

On daily charts, silver is sustaining above 20DMA (21.60), breakage below will lead to 19.40. MACD is above zero line and histograms are increasing trend and it will bring bullish stance in the upcoming sessions. RSI is approaching overbought region, indicating buy signal for now. The Stochastic Oscillator is in neutral 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 23.90-21.60 targeting 24.40-24.95-26.00 and 26.40-26.80 and 27.60-28.00, stop breakage below 23.50. Sell below 24.95-26.80 with stop loss above 26.80; targeting 24.00-23.20-22.60 and 22.00-21.60.

 
Intraday  Support Levels
S1     23.90-23.20
S2     22.60
S3     22.00-21.60

Intraday  Resistance Levels
R1     24.40-24.95
R2     25.65
R3     26.05-26.80

TECHNICAL INDICATORS
Name   Value Action
14DRSI   56.681 Buy
20-DMA   24.32 Buy
50-DMA   24.97 Buy
100-DMA   23.84 Buy
200-DMA   20.04 Buy
STOCH(5,3)   83.268 Buy
MACD(12,26,9)   -0.032 Buy

Oil - WTI

AAFX TRADING

Crude Oil on Friday made an intra‐day high of US41.51/bbl, intraday low of US$37.39/bbl and settled down by 5.99% to close at US$39.96/bbl.

Technicals in Focus:

On daily charts, oil is sustaining below its 50DMA i.e. 40.00 which is a resistance level and breakage above will call for 44.00. MACD is below zero line and histograms are in increasing mode will bring bullish 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 neutral region and more downside can be expected to reach the oversold region, which is highly probable.

Trading Strategy: Neutral to Buy

Based on the charts and explanations above; buy above 40.35-37.00 with risk daily closing below 37.10 and targeting 41.00-41.90-42.50 and 43.00-43.90. Sell in between 41.00-43.90 with stop loss at 43.90; targeting 40.35-39.40-38.90 and 37.90-37.00-36.50.

 
Intraday Support Levels
S1     40.35-39.40
S2     38.90
S3     37.90-37.00

Intraday Resistance Levels
R1     41.00-41.90
R2     42.50
R3     43.00-43.90

TECHNICAL INDICATORS
Name   Value Action
14DRSI   47.979 Sell
20-DMA   39.43 Sell
50-DMA   39.69 Sell
100-DMA   40.35 Buy
200-DMA   37.37 Sell
STOCH(5,3)   76.130 Sell
MACD(12,26,9)   1.053 Sell

EUR/USD

AAFX TRADING

EUR/USD on Monday an intraday low of US$1.1794/EUR, high of US$1.1919/EUR and settled the day down by 0.631% to close at US$1.1812/EUR.

Technicals in Focus:

On daily charts, prices are sustaining below 100DMA (1.1031), which become immediate resistance level, break above will target 1.1090. 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 right now.

Trading Strategy: Neutral to Buy

Buy above 1.1860-1.1460 with risk below 1.1460, targeting 1.1900-1.1950. Sell below 1.1900-1.2010 targeting 1.1860-1.1790-1.1710 and 1.1635 1.1570 with stop-loss at daily closing above 1.2010.

 
Intraday Support Levels
S1     1.1860-1.1790
S2     1.1750
S3     1.1710-1.1635

Intraday  Resistance Levels
R1     1.1900
R2     1.1950
R3     1.1970-1.2000

TECHNICAL INDICATORS
Name   Value Action
14DRSI   60.812 Buy
20-DMA   1.1767 Buy
50-DMA   1.1775 Buy
100-DMA   1.1685 Buy
200-DMA   1.1335 Buy
STOCH(5,3)   92.758 Sell
MACD(12,26,9)   0.0011 Buy

GBP/USD

AAFX TRADING

GBP/USD on Monday made an intra‐day low of US$1.3091/GBP, high of US$1.3176/GBP and settled the day down by 0.117% to close at US$1.3158/GBP.

Technicals in Focus:

On daily charts, prices are sustaining above 20DMA (1.3134) is become immediate 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 negative crossover to confirm bearish stance. MACD is above zero line but histograms are increasing lead to upward movement.

Trading Strategy: Neutral to Sell

Based on the charts and explanations above; sell below 1.3190-1.3490 with targets at 1.3150-1.3100-1.3020 and 1.2940-1.2820-1.2750 stop-loss should be 1.3490. Buy above 1.3150-1.2600 with targets 1.3190 1.3250 and 1.3400-1.3450 with stop loss closing below 1.2650.

 
Intraday Support Levels
S1     1.3150-1.3100
S2     1.3020
S3     1.2950-1.2820

Intraday Resistance Levels
R1     1.3190
R2     1.3250
R3     1.3290-1.3340

TECHNICAL INDICATORS
Name   Value Action
14DRSI  

58.539

Buy
20-DMA   1.3005 Sell
50-DMA   1.2979 Buy
100-DMA   1.2900 Buy
200-DMA   1.2703 Buy
STOCH(5,3)   79.940 Buy
MACD(12,26,9)   -0.005 Sell

USD/JPY

AAFX TRADING

USD/JPY on Monday made intra‐day low of JPY103.43/USD and made an intraday high of JPY103.75/USD and settled the day down by 1.961% at JPY103.44/USD.

Technicals in Focus:

In daily charts, JPY is sustaining above 200DMA (108.30), 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 neutral territory and signaling to sell as it has given negative crossover to confirm bearish stance.

Trading Strategy: Neutral to Sell

Sell below 103.90-108.00 with risk above 108.00 targeting 103.10-102.50-102.00 and 101.50-101.10. Long positions above 103.10-101.00 with targets of 103.90-104.00-106.90 and 107.50-107.90-108.40 with stop below 105.00.

 
Intraday Support Levels
S1     105.00-104.50
S2     103.90
S3     103.10-102.50

INTRADAY RESISTANCE LEVELS
R1     105.40-105.90
R2     106.40
R3     106.95-107.50

TECHNICAL INDICATORS
Name   Value Action
14DRSI   33.726 Buy
20-DMA   105.25 Sell
50-DMA   105.51 Sell
100-DMA   106.09 Sell
200-DMA   107.15 Sell
STOCH(9,6)   18.253 Sell
MACD(12,26,9)   -0.099 Sell

AAFX TRADING
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