AAFX TRADING

Daily Market Lookup

  • The dollar was up on Tuesday morning in Asia as Russia recognized two breakaway parts of eastern Ukraine, increasing concerns of a major war. Investors turn to safe-haven assets as Russia and Ukraine tension escalates. The euro dipped about 0.1% to a one-week low of $1.1297 while the Swiss franc, another safe-haven, hit a one-month high overnight. Russian President Vladimir Putin recognized two breakaway regions in eastern Ukraine as independent on Monday and ordered the deployment of troops to the areas. Whether the action was the start of an invasion of Ukraine is not clear yet, but the West has begun to respond by preparing sanctions. The Russian robule extended its slide on Tuesday after it tanked more than 3% against dollar on Monday.
  • The safe-haven yen hit a near three-week high and the euro touched a one-week low in Asia trade on Tuesday as Russia ordered troops into breakaway parts of eastern Ukraine and the West vowed sanctions in response. Trade in other currencies steadied as investors await further developments in the crisis - with the Russian rouble climbing back above 80-to-the-dollar and the risk-sensitive Antipodean currencies holding firm. A senior U.S. official said the move did not yet constitute a "further invasion" that would trigger the harshest sanctions, but that a wider campaign could come at any time. Britain, France and Germany agreed to respond to Russia's recognition of the breakaway regions with sanctions, and the White House said it would announce further measures. A planned meeting between Russian Foreign Minister Sergei Lavrov and U.S. Secretary of State Antony Blinken on Thursday is now in focus ahead of a possible U.S.-Russia leaders summit on Friday.
  • Gold was up on Tuesday morning in Asia after Russia recognized two breakaway regions of eastern Ukraine and ordered troops into the regions. Russian President Vladimir Putin recognized two breakaway regions of eastern Ukraine as independent on Monday, ordering the Russian Army to deploy troops into the area. Trade and investment between U.S. individuals and the two breakaway regions are prohibited according to an executive order signed by U.S. President Joe Biden, the White House said. The accelerating crisis has pushed oil to a seven-year high, while safe-havens rallied, and U.S. stock futures dived. Federal Reserve Governor Michelle Bowman said on Monday she will look at the economic data over the next three weeks to determine whether it is necessary to raise the interest rate by a half percentage point at the central bank’s next meeting in March.
  • Oil prices jumped more than $2 on Tuesday on supply disruption worries as tensions between Russia and Ukraine escalated, after Moscow ordered troops into two breakaway regions in eastern Ukraine. Moscow's move drew international condemnation and U.S. officials said Washington in coordination with allies is planning to announce new sanctions on Russia. U.S. President Joe Biden has issued an executive order to halt U.S. business activity in the breakaway regions and ban import of all goods from those areas. But a Biden administration official said Russia's military action did not as yet constitute an invasion that would trigger a broader sanctions package. Oil was mixed on Tuesday morning in Asia after Moscow ordered troops into two breakaway regions in eastern Ukraine, adding to concerns a war is imminent. Investors now await U.S. crude oil supply data from the American Petroleum Institute, due later in the day. The U.S. market was closed on Monday for a public holiday. U.S. and European officials condemned the move by Moscow. However, a Biden administration official said Russia's military action has yet to constitute an invasion which could trigger a broader sanctions package. After Moscow recognized two breakaway regions as independent, Ukrainian President Volodymir Zelensky accused Russia of violating Ukraine's sovereign territory on Tuesday. He said although his country wanted a diplomatic solution to the crisis, it was ready to stand its ground for the long haul. Analysts now question whether Russian energy exports would be disrupted if Moscow invaded Ukraine and sanctions were imposed on Russian financial institutions. Commonwealth Bank analyst Vivek Dhar said it was unlikely U.S. and European governments would impose oil or gas sanctions on Russia if it invaded Ukraine further, as that would inflict pain on themselves. However, Russia itself could hold back oil and gas supplies if it sought to retaliate against any other sanctions imposed by the West, Dhar added. Ukrainian President Volodymyr Zelenskiy accused Russia of wrecking peace talks and ruled out territorial concessions. Analysts say the big question hanging over the oil market is whether Russian energy exports would actually be disrupted if Moscow went ahead with a fullscale invasion of Ukraine and western governments imposed sanctions against Russian financial institutions.

 

 
Intraday RESISTANCE LEVELS
22nd February 2022 R1 R2 R3
GOLD-XAU 1,909-1,916 1,924 1,934-1,940
Silver-XAG 24.40-24.80 25.40 25.70-26.00
Crude Oil 93.10-94.00 94.50 94.90-95.50
EURO/USD 1.1355-1.1400 1.1485 1.1525-1.1570
GBP/USD 1.3640 1.3700 1.3750-1.3800
USD/JPY 115.70-116.10 116.80 117.50-118.00

Intraday SUPPORTS LEVELS
22nd February 2022 S1 S2 S3
GOLD-XAU 1,900-1,890 1,879 1,870-1,856
Silver-XAG 23.90-23.40 22.90 22.50-21.90
Crude Oil 92.50-91.90 91.00 90.40-89.00
EURO/USD 1.1305 1.1270 1.1230-1.1200
GBP/USD 1.3600-1.3570 1.3500 1.3410-1.3350
USD/JPY 114.90 114.50 114.05-113.70

Intra-Day Strategy (22nd February 2022)
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 Monday made its intraday high of US$1908.16/oz and low of US$1887.46/oz. Gold up 0.336% at US$1903.86/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 1890-1849 with risk below 1849, targeting 1900-1909-1916 and 1924-1934. Sell in between 1900-1949 keeping stop loss closing above 1949, targeting 1890-1879-1874 and 1865-1856-1849.

 
Intraday Support Levels
S1     1,900-1,890
S2     1,879
S3     1,870-1,856
Intraday Resistance Levels
R1     1,909-1,916
R2     1,924
R3     1,934-1,940

Technical Indicators

Name   Value Action
14DRSI  

65.587

Buy
20-DMA   1820.68 Sell
50-DMA  

1812.81

Buy
100-DMA   1806.50 Buy
200-DMA   1802.93 Buy
STOCH(5,3)   84.016 Buy
MACD(12,26,9)   5.877 Buy

Silver - XAG

AAFX TRADING

Silver on Monday made its intraday high of US$24.03/oz and low of US$23.68/oz settled up by 0.066% at US$23.96/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 23.90-20.50, targeting 24.10-24.55-24.90 and 25.40-26.00 with stop loss should be place on the breakage below 20.50. Sell in between 24.40-25.90 with stop loss above 25.90; targeting 23.15-22.90 and 22.50-22.10-21.90.

 
Intraday  Support Levels
S1     23.90-23.40
S2     22.90
S3     22.50-21.90

Intraday  Resistance Levels
R1     24.40-24.80
R2     25.40
R3     25.70-26.00

TECHNICAL INDICATORS
Name   Value Action
14DRSI   63.559 Buy
20-DMA   23.45 Sell
50-DMA   23.27 Sell
100-DMA   23.41 Sell
200-DMA   23.79 Sell
STOCH(5,3)   88.764 Buy
MACD(12,26,9)   -0.119 Buy

Oil - WTI

AAFX TRADING

Crude Oil on Monday made an intra‐day high of US92.51/bbl, intraday low of US$88.90/bbl and settled up by 1.648% to close at US$92.49/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 93.10-95.50 with stop loss at 95.50; targeting 92.50-91.90-91.00 and 89.00-88.20-87.60. Buy above 92.50-90.40 with risk daily closing below 90.40 and targeting 93.00-93.90-94.50 and 94.90-95.50.

 
Intraday Support Levels
S1     92.50-91.90
S2     91.00
S3     90.40-89.00

Intraday Resistance Levels
R1     93.10-94.00
R2     94.50
R3     94.90-95.50

TECHNICAL INDICATORS
Name   Value Action
14DRSI   66.814 Sell
20-DMA   89.03 Buy
50-DMA   84.50 Buy
100-DMA   80.43 Buy
200-DMA   74.80 Buy
STOCH(5,3)   72.108 Buy
MACD(12,26,9)   2.934 Buy

EUR/USD

AAFX TRADING

EUR/USD on Monday made an intraday low of US$1.1306/EUR, high of US$1.1389/EUR and settled the day down by 0.103% to close at US$1.1306/EUR.

Technicals in Focus:

On daily charts, prices are sustaining above 50DMA (1.347), which become immediate support, break below will target 1.1270. 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 1.1355-1.1220 with risk below 1.1220, targeting 1.1485-1.1525-1.1570 and 1.1620-1.1650. Sell below 1.1400-1.1570, targeting 1.1350-1.1270-1.1230 and 1.1200-1.1185 with stop-loss at daily closing above 1.1650.

 
Intraday Support Levels
S1     1.1305
S2     1.1270
S3     1.1230-1.1200

Intraday  Resistance Levels
R1     1.1355-1.1400
R2     1.1485
R3     1.1525-1.1570

TECHNICAL INDICATORS
Name   Value Action
14DRSI   59.407 Buy
20-DMA   1.1328 Buy
50-DMA   1.1347 Buy
100-DMA   1.1435 Buy
200-DMA   1.1570 Sell
STOCH(5,3)   89.547 Sell
MACD(12,26,9)   0.001 Buy

GBP/USD

AAFX TRADING

GBP/USD on Thursday made an intra‐day low of US$1.3545/GBP, high of US$1.3637/GBP and settled the day by 0.237% to close at US$1.3614/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 1.3600-1.3350 with target 1.3640-1.3700 and 1.3750-1.3800-1.3840 with stop loss closing below 1.3300. Sell in between 1.3640-1.3840 with targets at 1.3500-1.3440-1.3390 and 1.3300-1.3250 with stop loss should be 1.3790.

 
Intraday Support Levels
S1     1.3600-1.3570
S2     1.3500
S3     1.3410-1.3350

Intraday Resistance Levels
R1     1.3640
R2     1.3700
R3     1.3750-1.3800

TECHNICAL INDICATORS
Name   Value Action
14DRSI  

50.849

Buy
20-DMA   1.3520 Buy
50-DMA   1.3500 Buy
100-DMA   1.3535 Buy
200-DMA   1.3580 Buy
STOCH(5,3)   66.766 Buy
MACD(12,26,9)   -0.039 Sell

USD/JPY

AAFX TRADING

USD/JPY on Monday made intra‐day low of JPY114.70/USD and made an intraday high of JPY115.11/USD and settled the day down 0.240% at JPY114.73/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 115.90-118.00 with risk above 118.00 targeting 115.40-115.00-114.50 and 113.90-113.20-112.70. Long positions above 115.00-113.70 with targets of 115.50-116.35-116.90 with stop below 113.70.

 
Intraday Support Levels
S1     114.90
S2     114.50
S3     114.05-113.70

INTRADAY RESISTANCE LEVELS
R1     115.70-116.10
R2     116.80
R3     117.50-118.00

TECHNICAL INDICATORS
Name   Value Action
14DRSI   46.1338 Buy
20-DMA   114.84 Sell
50-DMA   114.19 Buy
100-DMA   113.17 Buy
200-DMA   111.59 Buy
STOCH(9,6)   11.683 Sell
MACD(12,26,9)   0.0102 Sell

AAFX TRADING
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