AAFX TRADING

Daily Market Lookup

  • The dollar was down on Tuesday morning in Asia, with riskier currencies boosted by the news that U.S. President-elect Joe Biden is set to nominate Janet Yellen as the U.S. Secretary of the Treasury. The dollar saw its lowest level since Sep. 1 overnight, as clarity from November’s U.S. presidential election begins to emerge. However, analysts warned of a potential fresh downturn for the dollar should a conclusive break on the dollar index below support at around 92 occur. Yellen, a former Federal Reserve Chairman, will be the latest nomination to the Biden cabinet. Already hinting at how she will tackle her role, she called for increased government spending to boost the COVID-19-ravaged U.S. economy. She has also often cited growing U.S. economic inequality as a threat to U.S. values and the country’s future. Some investors welcomed the news. Rupkey was referring to incumbent Treasury Secretary Steven Mnuchin’s shock decision during the previous week to let some Fed lending programs expire at the end of the year. The decision sparked a feud with the Fed, led by incumbent Chairman Jerome Powell, who argued that the programs were vital in supporting the economy. Incumbent U.S. President Donald Trump’s go-ahead to General Services Administration head Emily Murphy to proceed with assisting the Biden administration's transition to government also increased risk appetite as the first steps towards acknowledging the election results. However, Trump is still planning to continue his legal challenges over the same results. On the COVID-19 front, AstraZeneca (LON:AZN) in conjunction with the University of Oxford, is the latest company to report positive news for a vaccine candidate. The candidate, AZD122, met its primary endpoint in clinical trials that took place in the U.K and Brazil, the company said on Monday. Preparations are now underway to submit the data to authorities globally for conditional or early approvals. The safe-haven yen is slowing reversing a slip of around 0.6% seen during the previous session. The GBP/USD pair inched up 0.05% to 1.3330. The pound was staying close to a near 12-week high against the dollar thanks to investor bets that the U.K. and the European Union will finally seal a Brexit trade deal soon. Negotiations between the two parties continue this week, racing to beat the end-of-year deadline for a deal.
  • The pound gave up some gains against the dollar after hitting a 10-week high as analysts suggest the low U.K. rates will keep a lid on sterling's path higher even as Brexit deal looks likely. The optimism over a Brexit deal comes as the European Commission reportedly told EU ambassadors on Friday that 95% of a post-Brexit deal had been agreed. The wave of positive reports has raised expectations that a deal could be reached in the coming days, though given the range of politically sensitive issues that remain outstanding, a final agreement will likely need to be "brokered personally between [European Commission President] Von Der Leyen and UK Prime Minster Johnson," the bank added.Bank of England governor Andrew Bailey warned on Monday that a no-deal Brexit would be worse for the economy than the long-term impact of the coronavirus epidemic PM Johnson confirmed that the England lockdown would be lifted on Dec. 2, though regional restrictions would be kept in place to stop the spread of Covid-19. The second lockdown dealt a blow to business activity, with some warning the U.K. economy is set to slip into a double-dip recession.
  • Oil was up on Tuesday morning in Asia as a rollout of at least one COVID-19 vaccine within the next month looks increasingly certain, promising increased demand in the new year. Also, the U.S. presidential transition is finally underway, offering political certainty. Oil has reached its highest price since March on the back of the likelihood of a vaccine being rolled out within the next month. There are currently three viable vaccines, with AstraZeneca PLC adding its candidate to those of Pfizer Inc and Moderna Inc (NASDAQ:NASDAQ:MRNA). The U.S. has said that it will hopefully begin a vaccination program by Dec. 12. Investors are looking toward a strong build in demand once the global economy starts to recover from the COVID-19-caused economic slump of the last year. The enthusiasm has pushed both Brent and WTI futures well above the $40 mark. A second, major positive for oil is that U.S. President Donald Trump has finally given the go-ahead for the official transition to President-elect Joe Biden’s administration to proceed. The Trump administration had been refusing to authorize access to essential government information and funding for the incoming administration. The markets anticipate the Biden administration to be much more supportive of COVID-19 relief measures, and more proactive in driving a U.S. economic recovery. OPEC+ is also gearing up for its full ministerial meeting, due to take place from Nov. 30 to Dec. 1. Investors will focus on whether the discussions will lead to an extension of current production cuts as ever-growing numbers of COVID-19 cases globally cut demand. Crude oil supply data from the American Petroleum Institute is due later in the day.

 

 
Intraday RESISTANCE LEVELS
24th November 2020 R1 R2 R3
GOLD-XAU 1,833-1.840 1,848 1,860-1,874
Silver-XAG 23.90-24.95 25.65 26.05-26.80
Crude Oil 43.60 44.00 44.60-45.80
EURO/USD 1.1905-1.1950 1.1970 1.2010
GBP/USD 1.3400-1.3440 1.3480 1.3550
USD/JPY 104.50-105.00 105.40 105.90-106.40

Intraday SUPPORTS LEVELS
24th November 2020 S1 S2 S3
GOLD-XAU 1,821-1,805 1,796 1,790-1,781
Silver-XAG 23.20 22.60 22.00-21.50
Crude Oil 43.00-42.50 41.90 41.40-41.00
EURO/USD 1.1840-1.1790 1.1750 1.1700-1.1635
GBP/USD 1.3340-1.3290 1.3250 1.3200-1.3150
USD/JPY 103.90 103.15-102.50 102.05

Intra-Day Strategy (24th 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$1875.94/oz and low of US$1830.87/oz. Gold up 1.794% at US$1836.80/oz.

Technicals in Focus:

In daily charts, prices are below 50DMA (1899) and breakage above will call for 1916. 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 oversold territory and giving negative crossover to bearish stance for intraday trade.

Trading Strategy: Buy on Dips

Based on the charts and explanations above; buy above 1824-1790 with risk below 1826, targeting 1833-1840-1848 and 1860-1874-1887. Sell below 1833-1874 keeping stop loss closing above 1881, targeting 1824-1805-1796 and 1790-1781.

 
Intraday Support Levels
S1     1,821-1,805
S2     1,796
S3     1,790-1,781
Intraday Resistance Levels
R1     1,833-1.840
R2     1,848
R3     1,860-1,874

Technical Indicators

Name   Value Action
14DRSI  

36.763

Buy
20-DMA   1881.91 Sell
50-DMA  

1894.48

Sell
100-DMA   1909.88 Sell
200-DMA   1795.80 Buy
STOCH(5,3)   20.503 Sell
MACD(12,26,9)   -14.276 Sell

Silver - XAG

AAFX TRADING

Silver on Monday made its intraday high of US$24.38/oz and low of US$23.40/oz settled down by 2.319% at US$23.58/oz.

Technicals in Focus:

On daily charts, silver is sustaining below 50DMA (24.30), breakage above will lead to 25.00. MACD is below zero line and histograms are decreasing trend and it will bring bearish stance in the upcoming sessions. RSI is approaching neutral region, indicating buy signal for now. The Stochastic Oscillator is in oversold region and giving negative crossover to show downside move for the intraday trade.

Trading Strategy: Buy on Dips

Based on the charts and explanations above, buy silver in between 23.20-21.60, targeting 23.90-24.95-25.65 and 26.05-26.40-26.80 with stop loss should be place on the breakage below 21.50. 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     23.20
S2     22.60
S3     22.00-21.50

Intraday  Resistance Levels
R1     23.90-24.95
R2     25.65
R3     26.05-26.80

TECHNICAL INDICATORS
Name   Value Action
14DRSI   41.681 Buy
20-DMA   24.17 Sell
50-DMA   24.28 Sell
100-DMA   24.59 Sell
200-DMA   20.43 Buy
STOCH(5,3)   20.268 Sell
MACD(12,26,9)   -0.1573 Buy

Oil - WTI

AAFX TRADING

Crude Oil on Monday made an intra‐day high of US43.34/bbl, intraday low of US$42.29/bbl and settled up by 0.879% to close at US$42.79/bbl.

Technicals in Focus:

On daily charts, oil is sustaining above its 100DMA i.e. 40.58 which is a support level and breakage below will call for 40.10. MACD is above 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 upside can be expected to reach the overbought region, which is highly probable.

Trading Strategy: Neutral to Buy

Based on the charts and explanations above; buy above 43.00-39.00 with risk daily closing below 39.10 and targeting 43.60-44.50 and 45.00-45.80. Sell in between 43.60-45.80 with stop loss at 46.00; targeting 43.00-42.50-41.50 and 41.00-40.35-39.40.

 
Intraday Support Levels
S1     43.00-42.50
S2     41.90
S3     41.40-41.00

Intraday Resistance Levels
R1     43.60
R2     44.00
R3     44.60-45.80

TECHNICAL INDICATORS
Name   Value Action
14DRSI   64.489 Sell
20-DMA   40. 01 Buy
50-DMA   40.03 Buy
100-DMA   40.58 Buy
200-DMA   36.66 Buy
STOCH(5,3)   85.130 Buy
MACD(12,26,9)   0.889 Buy

EUR/USD

AAFX TRADING

EUR/USD on Monday an intraday low of US$1.1799/EUR, high of US$1.1905/EUR and settled the day down by 0.0590% to close at US$1.1839/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 1.1860-1.1635 with risk below 1.1600, targeting 1.1900-1.1950 and 1.1970-1.2010. Sell below 1.1905-1.2010 targeting 1.1860-1.1790 and 1.1750-1.1710-1.1635 with stop-loss at daily closing above 1.2010.

 
Intraday Support Levels
S1     1.1840-1.1790
S2     1.1750
S3     1.1700-1.1635

Intraday  Resistance Levels
R1     1.1905-1.1950
R2     1.1970
R3     1.2010

TECHNICAL INDICATORS
Name   Value Action
14DRSI   57.812 Buy
20-DMA   1.1794 Buy
50-DMA   1.1774 Buy
100-DMA   1.1748 Buy
200-DMA   1.1386 Buy
STOCH(5,3)   55.758 Sell
MACD(12,26,9)   0.0011 Buy

GBP/USD

AAFX TRADING

GBP/USD on Monday made an intra‐day low of US$1.3262/GBP, high of US$1.3396/GBP and settled the day up by 0.240% to close at US$1.3323/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 1.3400-1.3550 with targets at 1.3340-1.3290-1.3200 and 1.3150-1.3100-1.3020 stop-loss should be 1.3550. Buy above 1.3340-1.2880 with targets 1.3400-1.3450 and 1.3480-1.3550 with stop loss closing below 1.2800.

 
Intraday Support Levels
S1     1.3340-1.3290
S2     1.3250
S3     1.3200-1.3150

Intraday Resistance Levels
R1     1.3400-1.3440
R2     1.3480
R3     1.3550

TECHNICAL INDICATORS
Name   Value Action
14DRSI  

63.539

Buy
20-DMA   1.3132 Sell
50-DMA   1.3005 Buy
100-DMA   1.2988 Buy
200-DMA   1.2717 Buy
STOCH(5,3)   78.940 Buy
MACD(12,26,9)   -0.005 Sell

USD/JPY

AAFX TRADING

USD/JPY on Monday made intra‐day low of JPY103.67/USD and made an intraday high of JPY104.62/USD and settled the day up by 0.649% at JPY104.45/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

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.

 
Intraday Support Levels
S1     103.90
S2     103.15-102.50
S3     102.05

INTRADAY RESISTANCE LEVELS
R1     104.50-105.00
R2     105.40
R3     105.90-106.40

TECHNICAL INDICATORS
Name   Value Action
14DRSI   45.726 Buy
20-DMA   104.61 Sell
50-DMA   105.11 Sell
100-DMA   105.73 Sell
200-DMA   106.28 Sell
STOCH(9,6)   34.253 Sell
MACD(12,26,9)   -0.099 Sell

AAFX TRADING
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