AAFX TRADING

Daily Market Lookup

  • The dollar was down on Tuesday morning in Asia, hitting a fresh two-decade peak against the yen. U.S. Federal Reserve policymakers pushed for sizeable interest rate hikes, and the Bank of Japan (BOJ) maintained its dovish stance as it intervened in the market again. Minneapolis Fed President Neel Kashkari, among the more dovish Fed members, said on Tuesday that policymakers must take even more aggressive action to bring down inflation should global supply chain disruptions persist. Kashkari’s colleague, Chicago Fed President Charles Evans, also said he is "comfortable" with a round of rate hikes in 2022 including two 50 basis-point increases, a change of position from just a month ago. Evans, along with San Francisco Fed President Mary Daly, will also speak later in the day. Other central bank policymakers speaking throughout the week include Fed Chairman Jerome Powell and European Central Bank President Christine Lagarde, who will speak at an International Monetary Fund event on Thursday. Bank of England Governor Andrew Bailey will also speak a day later. U.S. Treasury yields continued their upward trend in Asian trading, with 10-year yields hitting 2.981% for the first time since December 2018. Meanwhile, BOJ again offered to buy unlimited amounts of Japanese government bonds on Wednesday to rein in the rise in Japanese 10-year yields, which are uncomfortably close to the central bank’s 0.25% tolerance ceiling. The contrasting approach to the Fed led some investors to say the yen's rapid descent is not unjustified, even as it raises the risks for currency intervention. However, Japanese Finance Minister Shunichi Suzuki warned that the damage to the economy from a weakening currency is currently greater than the benefits from it.
  • The dollar was down on Tuesday morning in Asia, hitting a fresh two-decade peak against the yen. U.S. Federal Reserve policymakers pushed for sizeable interest rate hikes, and the Bank of Japan (BOJ) maintained its dovish stance as it intervened in the market again. Minneapolis Fed President Neel Kashkari, among the more dovish Fed members, said on Tuesday that policymakers must take even more aggressive action to bring down inflation should global supply chain disruptions persist. Kashkari’s colleague, Chicago Fed President Charles Evans, also said he is "comfortable" with a round of rate hikes in 2022 including two 50 basis-point increases, a change of position from just a month ago. Evans, along with San Francisco Fed President Mary Daly, will also speak later in the day. Other central bank policymakers speaking throughout the week include Fed Chairman Jerome Powell and European Central Bank President Christine Lagarde, who will speak at an International Monetary Fund event on Thursday. Bank of England Governor Andrew Bailey will also speak a day later. The contrasting approach to the Fed led some investors to say the yen's rapid descent is not unjustified, even as it raises the risks for currency intervention. However, Japanese Finance Minister Shunichi Suzuki warned that the damage to the economy from a weakening currency is currently greater than the benefits from it.
  • Gold prices fell on Wednesday to their lowest in more than a week, as a elevated U.S. dollar and Treasury yields continued to weigh on demand for bullion. China kept its benchmark lending rates for corporate and household loans steady at its April fixing, defying expectations, as Beijing has become more cautious in rolling out easing measures to aid a slowing economy. Gold is highly sensitive to rising U.S. interest rates and higher yields, which increase the opportunity cost of holding non-yielding bullion. While recent gains show Ukraine is still a key focus, the move overnight is about rebalancing fast money flows, and not a structural change in gold's outlook, Halley said, adding that a sustained rise by U.S. 10-year yields through 3.0% could change that outlook. On Monday, gold prices came within touching distance of the key $2,000 per ounce level as the deteriorating Ukraine crisis and mounting inflation worries drove investors to the safety of gold.
  • Gold was down on Wednesday morning in Asia, hitting a more than one-week low. The dollar remained near recent highs and U.S. Treasury yields continued to weigh on demand. The yellow metal came close to climbing above the $2,000 mark on Monday, as the war in Ukraine precipitated by the Russian invasion of Feb. 24 and worries about rising inflation drove investors towards the safe-haven asset. Prices fell up to 1.8% on Tuesday thanks to a strengthening dollar and rising Treasury yields that overshadowed inflows into bullion. In an unexpected move, the People’s Bank of China kept its loan prime rates (LPRs) steady earlier in the day. The one-year LPR was at 3.7% and the five-year LPR at 4.6%. Recent gains show Ukraine is still a key focus, with the move overnight about rebalancing fast money flows and not a structural change in gold's outlook, said Halley. However, a sustained rise by U.S. 10-year yields through 3% could change that outlook, he added.

 

 
Intraday RESISTANCE LEVELS
20th April 2022 R1 R2 R3
GOLD-XAU 1.950-1,958 1,970 1,980-1,996
Silver-XAG 25.40-26.00 26.50 26.95-27.50
Crude Oil 104.50-105.50 106.00 107.70-109.00
EURO/USD 1.0820-1.0870 1.0900 1.0950-1.1025
GBP/USD 1.3035-1.3110 1.3160 1.3240-1.3285
USD/JPY 129.00-129.60 130.00 130.60-131.20

Intraday SUPPORTS LEVELS
20th April 2022 S1 S2 S3
GOLD-XAU 1,938-1,923 1,907 1,900-1,889
Silver-XAG 24.90-24.55 23.95 23.80-23.20
Crude Oil 102.95-102.50 101.00 100.60-99.25
EURO/USD 1.0765-1.0720 1.0680 1.0610-1.0550
GBP/USD 1.3000-1.2970 1.2900 1.2840-1.2790
USD/JPY 128.10-127.00 126.40 124.90-124.00

Intra-Day Strategy (20th April 2022)
GOLD-XAU Sell on Strength
Silver-XAG Buy on Dips
Crude Oil Neutral to Sell
EUR/USD Neutral to Sell
GBP/USD Neutral to Buy
USD/JPY Neutral to Sell

Gold – XAU

AAFX TRADING

Gold on Tuesday made its intraday high of US$1981.86/oz and low of US$1943.58/oz. Gold down 1.415% at US$1949.91/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: Sell on Strength

Sell below 1950-1996 keeping stop loss closing above 1996, targeting 1938-1,923-1,907 and 1,900-1,889. Buy in between 1938-1889 with risk below 1899, targeting 1950-1958-1970 and 1980-1996-2008.

 
Intraday Support Levels
S1     1,938-1,923
S2     1,907
S3     1,900-1,889
Intraday Resistance Levels
R1     1.950-1,958
R2     1,970
R3     1,980-1,996

Technical Indicators

Name   Value Action
14DRSI  

63.781

Buy
20-DMA   1949.51 Buy
50-DMA  

1922.10

Buy
100-DMA   1885.96 Buy
200-DMA   1852.04 Buy
STOCH(5,3)   92.670 Buy
MACD(12,26,9)   12.810 Buy

Silver - XAG

AAFX TRADING

Silver on Tuesday made its intraday high of US$25.99/oz and low of US$25.04/oz settled down by 2.46% at US$25.17/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 24.70-22.90, targeting 25.10-25.70-26.50 and 26.75-27.50-27.80 with stop loss should be place on the breakage below 22.90. Sell in between 25.40-27.90 with stop loss above 28.00; targeting 24.40-23.90-23.40 and 23.50-23.01.

 
Intraday  Support Levels
S1     24.90-24.55
S2     23.95
S3     23.80-23.20

Intraday  Resistance Levels
R1     25.40-26.00
R2     26.50
R3     26.95-27.50

TECHNICAL INDICATORS
Name   Value Action
14DRSI   63.326 Buy
20-DMA   25.03 Sell
50-DMA   24.66 Buy
100-DMA   24.28 Buy
200-DMA   24.19 Buy
STOCH(5,3)   90.836 Sell
MACD(12,26,9)   0.155 Buy

Oil - WTI

AAFX TRADING

Crude Oil on Monday made an intra‐day high of US109.09/bbl, intraday low of US$105.34/bbl and settled up by 0.129% to close at US$106.85/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 0will 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 104.00-110.00 with stop loss at 110.0; targeting 102.95-102.50-100.90-99.60. Buy above 102.95-99.60 with risk daily closing below 99.60 and targeting 104.50-105.50-106.00 and 106.90-107.70-109.00.

 
Intraday Support Levels
S1     102.95-102.50
S2     101.00
S3     100.60-99.25

Intraday Resistance Levels
R1     104.50-105.50
R2     106.00
R3     107.70-109.00

TECHNICAL INDICATORS
Name   Value Action
14DRSI   51.883 Sell
20-DMA   102.23 Sell
50-DMA   99.24 Buy
100-DMA   92.93 Buy
200-DMA   84.16 Buy
STOCH(5,3)   62.206 Sell
MACD(12,26,9)   0.384 Buy

EUR/USD

AAFX TRADING

EUR/USD on Tuesday made an intraday low of US$1.0760/EUR, high of US$1.0813/EUR and settled the day up by 0.0435% to close at US$1.0786/EUR.

Technicals in Focus:

On daily charts, prices are sustaining above 50DMA (1.1191), 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 Sell

Sell below 1.0820-1.1145, targeting 1.0765-1.0720-1.0640 and 1.0600-1.0550 with stop-loss at daily closing above 1.1200. Buy above 1.0765-1.0640 with risk below 1.0640, targeting 1.0820-1.0870-1.0900 and 1.0950-1.1105-1.1145.

 
Intraday Support Levels
S1     1.0765-1.0720
S2     1.0680
S3     1.0610-1.0550

Intraday  Resistance Levels
R1     1.0820-1.0870
R2     1.0900
R3     1.0950-1.1025

TECHNICAL INDICATORS
Name   Value Action
14DRSI   32.898 Buy
20-DMA   1.0904 Sell
50-DMA   1.1029 Sell
100-DMA   1.1171 Sell
200-DMA   1.1360 Sell
STOCH(5,3)   17.688 Sell
MACD(12,26,9)   -0.007 Buy

GBP/USD

AAFX TRADING

GBP/USD on Tuesday made an intra‐day low of US$1.2980/GBP, high of US$1.3040/GBP and settled the day down by 0.077% to close at US$1.2995/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 1.3010-1.2750 with target 1.3035-1.3110-1.3160 and 1.3240-1.3290-1.3320 with stop loss closing below 1.2750. Sell in between 1.3035-1.3400 with targets at 1.3000-1.2970 and 1.2925-1.2840 with stop loss should be 1.3300.

 
Intraday Support Levels
S1     1.3000-1.2970
S2     1.2900
S3     1.2840-1.2790

Intraday Resistance Levels
R1     1.3035-1.3110
R2     1.3160
R3     1.3240-1.3285

TECHNICAL INDICATORS
Name   Value Action
14DRSI  

38.488

Buy
20-DMA   1.3084 Sell
50-DMA   1.3197 Sell
100-DMA   1.3316 Sell
200-DMA   1.3435 Sell
STOCH(5,3)   29.970 Sell
MACD(12,26,9)   -0.002 Sell

USD/JPY

AAFX TRADING

USD/JPY on Tuesday made intra‐day low of JPY126.96/USD and made an intraday high of JPY128.96/USD and settled the day up 1.523% at JPY128.90/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 129.00-131.20 with risk above 131.20 targeting 128.10-127.00-126.40 and 124.90-124.00. Long positions above 128.10-124.00 with targets of 129.00-129.60-130.00 and 130.60-131.20 with stop below 124.00.

 
Intraday Support Levels
S1     128.10-127.00
S2     126.40
S3     124.90-124.00

INTRADAY RESISTANCE LEVELS
R1     129.00-129.60
R2     130.00
R3     130.60-131.20

TECHNICAL INDICATORS
Name   Value Action
14DRSI   56.266 Buy
20-DMA   115.18 Sell
50-DMA   114.81 Buy
100-DMA   113.1 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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