AAFX TRADING

Daily Market Lookup

  • The dollar was flat in early trading in Europe on Friday, on course to end the week lower after encouraging signs from the pandemic revived global risk appetite, supporting higher yielders. However, the dollar has lost between 1% and 1.5% this week against sterling and the Canadian, Australianand New Zealand dollars, and nearly 1% against the euro, as scientific data has dribbled out suggesting that the latest wave of the pandemic will be less economically damaging than previous ones. The only notable gains it has made have been against other haven currencies, such as the Japanese yen and the Swiss franc. Data released on Thursday that showed sustained inflationary pressure in the U.S. weren't enough to upset the broader optimism as a growing body of evidence suggested that the Omicron variant of Covid-19 is less likely than all previous dominant strains to lead to serious illness. The more evidence goes in that direction, the less likely disruptions to economic life will become. Trading has now all but stopped ahead of the Christmas holiday period, but markets remain at least formally open. As has been the case all week, the sharpest moves are in the Turkish lira, whose rally in response to President Recep Tayyip Erdogan's attempts to stop dollar hoarding now appears to be running out of steam. From a high of over 18 lira last week, the dollar fell as low as 10.1565 on Thursday before starting to gain ground again. By 3:30 AM ET, it traded at 11.6279, up 3.6% on the day. The Russian ruble was testing its highest level in over a month after news suggesting that talks with the U.S. to de-escalate the situation on the Ukrainian border may take place in the near future. President Vladimir Putin slightly dialed down the tension at his annual press conference on Thursday, declining to repeat a threat of military action that he had made in a speech earlier in the week. The South African rand also strengthened after fresh data showing that the first country to identify the Omicron variant of Covid-19 may soon put its latest infection wave behind it. The 7-day average for new infections is already down by around a quarter from its peak last week.
  • The dollar was down on Friday morning in Asia, with investors towards riskier assets as fears of the omicron COVID-19 variant’s virulence continue to fade. Volumes were thin ahead of the holidays, with U.S. markets closed and other markets, such as Hong Kong, ending the trading day early. Investors cheered the U.S. Food and Drug Administration’s emergency use approval for Molnupiravir, Merck & Co . Inc.'s (NYSE:MRK) COVID-19 pill, on Thursday. A U.K. study that said omicron infections are less likely to lead to hospitalization also boosted sentiment. However, the study added that the variant may still produce a substantial number of serious cases due to its infectiousness. Meanwhile, a laboratory study showed that two doses and a booster of Sinovac Biotech Ltd.’s vaccine did not produce sufficient levels of neutralizing antibodies to protect against omicron. Elsewhere in Asia Pacific, authorities locked down the western Chinese city of Xi’an, the biggest such move since the pandemic started in early 2020. The city’s 13 million residents were told to remain in their homes and to designate one person to go out every other day for necessities, in a bid to curb China’s latest COVID-19 outbreak. Two vaccine makers said their shots protected against Omicron as UK data suggested it may cause proportionally fewer hospital cases than the Delta coronavirus variant, though public health experts warned the battle against COVID-19 was far from over. Separately, data on Thursday showed the number of Americans filing new claims for unemployment benefits held below pre-pandemic levels last week, while consumer spending increased solidly, putting the economy on track for a strong finish to 2021. But price pressures continued to build up, with a measure of underlying inflation recording its largest annual increase since 1989 in November. The big gains came after President Tayyip Erdogan said the government and central bank would guarantee some local currency deposits against FX depreciation losses. Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
  • Oil prices were mixed on Monday, with Brent inching higher while U.S. crude futures slipped after airlines called off thousands of flights in the United States over Christmas holidays amid surging COVID-19 infections. However, the highly transmissible variant is causing COVID-19 case numbers to surge across the world. In the past three days, thousands of passengers travelling during Christmas have been stranded after U.S. airlines cancelled flights due to COVID-related staffing shortages. Oil markets, in general, remain cautious about near-term demand, market watchers said. In Europe, natural gas prices touched record highs last week on tight supplies, supporting Brent crude prices. Russian President Vladimir Putin said on Friday that the European Union can only blame its own policies for record gas prices, saying some of its members resell cheap Russian gas at much higher prices within the bloc. Looking ahead, oil investors are focused on the next OPEC+ meeting on Jan. 4. The Organization of the Petroleum Exporting Countries (OPEC and allies including Russia, known as OPEC+, will meet to decide whether to go ahead with a 400,000 barrels per day (bpd) production increase in February. Russia believes oil prices are unlikely to change significantly next year with demand recovering to pre-pandemic levels only by the end of 2022, Deputy Prime Minister Alexander Novak said on Friday.

 

 
Intraday RESISTANCE LEVELS
27th December 2021 R1 R2 R3
GOLD-XAU 1,808-1,818 1,824 1,834-1,845
Silver-XAG 23.15-23.80 24.50 24.90-25.50
Crude Oil 73.70-74.00 74.60 75.20-76.00
EURO/USD 1.1340-1.1385 1.1420 1.1485-1.1510
GBP/USD 1.3440-1.3490 1.3550 1.3610-1.3700
USD/JPY 114.50-115.00 115.90 116.50-116.90

Intraday SUPPORTS LEVELS
27th December 2021 S1 S2 S3
GOLD-XAU 1,800-1,785 1,778 1,769-1,758
Silver-XAG 22.60-22.10 21.40 21.00-20.50
Crude Oil 73.30-72.50 71.60 71.00-70.10
EURO/USD 1.1240-1.1170 1.1120 1.1050-1.1100
GBP/USD 1.3390¬-1.3300 1.3200 1.3150-1.3100
USD/JPY 113.90-113.50 113.10 112.70-112.10

Intra-Day Strategy (27th December 2021)
GOLD-XAU Buy on Dips
Silver-XAG Buy on Dips
Crude Oil Neutral to Sell
EUR/USD Neutral to Buy
GBP/USD Neutral to Buy
USD/JPY Neutral to Sell

Gold – XAU

AAFX TRADING

Gold on Friday made its intraday high of US$1810.64/oz and low of US$1798.77/oz. Gold up 0.269% at US$1808.47/oz.

Technicals in Focus:

In daily charts, prices are above 200DMA (1809) and breakage below will call for 1790. MACD is above zero line and histograms are also increasing trend and it will bring upward stance in the upcoming sessions. RSI is in overbought region and more upside is expected before it gets stretched. Stochastic Oscillator is in neutral territory and giving negative crossover to bearish stance for intraday trade.

Trading Strategy: Buy on Dips

Buy in between 1800-1758 with risk below 1758, targeting 1808-1818-1824 and 1831-1840. Sell in between 1808-1831 keeping stop loss closing above 1820, targeting 1783-1774-1769 and 1758-1750.

 
Intraday Support Levels
S1     1,800-1,785
S2     1,778
S3     1,769-1,758
Intraday Resistance Levels
R1     1,808-1,818
R2     1,824
R3     1,834-1,845

Technical Indicators

Name   Value Action
14DRSI  

48.253

Buy
20-DMA   1789.95 Buy
50-DMA  

1793.06

Buy
100-DMA   1794.81 Buy
200-DMA   1796.27 Buy
STOCH(5,3)   53.940 Buy
MACD(12,26,9)   -3.816 Buy

Silver - XAG

AAFX TRADING

Silver on Friday made its intraday high of US$22.92/oz and low of US$22.64/oz settled up by 0.337% at US$22.85/oz.

Technicals in Focus:

On daily charts, silver is sustaining below 100DMA (26.62), breakage above will lead to 27.60. 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 positive crossover to show upside move for the intraday trade.

Trading Strategy: Buy on Dips

Buy in between 22.60-20.50, targeting 22.60-23.20 and 23.80-24.05-24.55 with stop loss should be place on the breakage below 20.10. Sell in between 22.90-24.50 with stop loss above 24.50; targeting 21.40-21.00-20.50 and 19.90-19.50.

 
Intraday  Support Levels
S1     22.60-22.10
S2     21.40
S3     21.00-20.50

Intraday  Resistance Levels
R1     23.15-23.80
R2     24.50
R3     24.90-25.50

TECHNICAL INDICATORS
Name   Value Action
14DRSI   36.673 Buy
20-DMA   22.70 Sell
50-DMA   23.24 Sell
100-DMA   24.17 Sell
200-DMA   24.17 Sell
STOCH(5,3)   54.891 Buy
MACD(12,26,9)   -0.186 Buy

Oil - WTI

AAFX TRADING

Crude Oil on Friday made an intra‐day high of US73.82/bbl, intraday low of US$72.11/bbl and settled up by 0.903% to close at US$73.59/bbl.

Technicals in Focus:

On daily charts, oil is sustaining above its 20DMA i.e. 68.50 which is a support level and breakage below will call for 65.40. MACD is above zero line and histograms are in increasing mode will bring bullish stance in the upcoming sessions. The Stochastic Oscillator is in neutral 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 Sell

Sell in between 72.50-74.60 with stop loss at 74.50; targeting 73.30-72.50-71.60 and 71.00-70.10. Buy above 72.90-69.90 with risk daily closing below 69.90 and targeting 73.70-74.00-74.60.

 
Intraday Support Levels
S1     73.30-72.50
S2     71.60
S3     71.00-70.10

Intraday Resistance Levels
R1     73.70-74.00
R2     74.60
R3     75.20-76.00

TECHNICAL INDICATORS
Name   Value Action
14DRSI   45.522 Sell
20-DMA   72.09 Sell
50-DMA   74.24 Buy
100-DMA   73.51 Buy
200-DMA   69.25 Buy
STOCH(5,3)   43.873 Buy
MACD(12,26,9)   -1.741 Buy

EUR/USD

AAFX TRADING

EUR/USD on Friday made an intraday low of US$1.1305/EUR, high of US$1.1342/EUR and settled the day up by 0.007% to close at US$1.1319/EUR.

Technicals in Focus:

On daily charts, prices are sustaining below 50DMA (1.1700), which become immediate resistance level, break above will target 1.1825. MACD is above zero line and histograms are increasing mode which will bring bullish view. Stochastic is in overbought 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 right now.

Trading Strategy: Neutral to Buy

Buy above 1.1240-1.1100 with risk below 1.1100, targeting 1.1340-1.1385-1.1420 and 1.1485-1.1510-1.1590. Sell below 1.1340-1.1540 targeting 1.1540 and 1.1310-1.1250-1.1200 and 1.1170-1.1120 with stop-loss at daily closing above 1.1540.

 
Intraday Support Levels
S1     1.1240-1.1170
S2     1.1120
S3     1.1050-1.1100

Intraday  Resistance Levels
R1     1.1340-1.1385
R2     1.1420
R3     1.1485-1.1510

TECHNICAL INDICATORS
Name   Value Action
14DRSI   41.652 Buy
20-DMA   1.1322 Sell
50-DMA   1.1433 Sell
100-DMA   1.1567 Sell
200-DMA   1.1688 Sell
STOCH(5,3)   44.685 Buy
MACD(12,26,9)   -0.004 Buy

GBP/USD

AAFX TRADING

GBP/USD on Friday made an intra‐day low of US$1.3379/GBP, high of US$1.3418/GBP and settled the day up by 0.0626% to close at US$1.3394/GBP.

Technicals in Focus:

On daily charts, prices are sustaining above 100DMA (1.3760) 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 overbought territory and giving positive crossover to confirm bullish stance. MACD is above zero line but histograms are increasing lead to upward movement.

Trading Strategy: Neutral to Buy

Based on the charts and explanations above; buy in between 1.3390-1.3050 with target 1.3420 and 1.3490-1.3540 with stop loss closing below 1.3050. Sell in between 1.3440-1.3610 with targets at 1.3300-1.3265-1.3200 and 1.3150-1.3100-1.3050 with stop loss should be 1.3790.

 
Intraday Support Levels
S1     1.3390¬-1.3300
S2     1.3200
S3     1.3150-1.3100

Intraday Resistance Levels
R1     1.3440-1.3490
R2     1.3550
R3     1.3610-1.3700

TECHNICAL INDICATORS
Name   Value Action
14DRSI  

32.480

Buy
20-DMA   1.3528 Buy
50-DMA   1.3528 Buy
100-DMA   1.3631 Buy
200-DMA   1.3650 Buy
STOCH(5,3)   51.766 Buy
MACD(12,26,9)   -0.006 Sell

USD/JPY

AAFX TRADING

USD/JPY on Friday made intra‐day low of JPY114.24/USD and made an intraday high of JPY114.50/USD and settled the day down 0.280% at JPY114.33/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

Long positions above 113.90-110.50 with targets of 114.50-114.90-115.60 and 116.00-116.50-117.00 with stop below 106.00. Sell below 114.50-117.00 with risk above 117.00 targeting 113.90-113.20-112.70 and 112.10-111.50.

 
Intraday Support Levels
S1     113.90-113.50
S2     113.10
S3     112.70-112.10

INTRADAY RESISTANCE LEVELS
R1     114.50-115.00
R2     115.90
R3     116.50-116.90

TECHNICAL INDICATORS
Name   Value Action
14DRSI   55.065 Buy
20-DMA   113.67 Sell
50-DMA   113.29 Sell
100-DMA   112.34 Sell
200-DMA   110.87 Sell
STOCH(9,6)   69.683 Buy
MACD(12,26,9)   0.0102 Sell

AAFX TRADING
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