AAFX TRADING

Daily Market Lookup

  • The U.S. dollar posted further gains in early European trade Wednesday, trading at two-year highs on safe haven flows as traders digested slowing global growth, raised geopolitical tensions, and the prospect of more tightening by the Federal Reserve. Russia announced plans to halt gas flows to Poland and Bulgaria from Wednesday amid a standoff over fuel payments, to the benefit of the safe haven dollar. Russian President Vladimir Putin has decreed that payment from “unfriendly” buyers should be in rubles, helping support his country’s beleaguered currency, while the European Union has responded that would be a breach of sanctions. This escalation of tensions has added to the reasons traders have chosen to hold the dollar, with strict COVID-19 lockdown in China likely to hit economic growth in the world’s second largest economy while the Federal Reserve is expected to hike interest rates by 50 basis points in May as it seeks to combat inflation at a four-decade high. EUR/USD fell 0.2% to 1.0618, dropping to a five-year low, amid fears for Europe's energy security, while the weak GfK German consumer confidence index, projected to plunge to a historic low in May, also weighed. This central bank has maintained a very accommodative monetary stance, in direct contrast to the hawkish Federal Reserve, but traders see the risk of policy changes to try and arrest the currency's recent weakness. The Bank of Japan will also hand down its policy decision on Thursday. Although markets see some risk of adjustment to forecasts or even policy changes to try and arrest the yen's recent fall, Japanese Prime Minister Fumio Kishida played down such concerns on Tuesday. The pound has dropped more than 2% against the dollar in the week to date after worse-than-expected retail sales data prompted a re-think of the U.K.’s interest rates outlook. It hit a fresh 21-month low on Wednesday. U.S. earnings are likely to set the tone across financial markets later in the day, ahead of U.S. growth data due on Thursday where a solid showing could reinforce bets on rates moving sharply higher at the Federal Reserve's May meeting.
  • Gold prices fell on Wednesday as the U.S. dollar consolidated at its highest level in more than two years and pressured demand for greenback-priced bullion. The dollar stood at its highest level since the early days of the pandemic and was heading for its best month since 2015, supported by the prospect of aggressive U.S. rate hikes and on safe-haven flows fanned by slowing growth in China and Europe. A stronger dollar makes greenback-priced gold less attractive for other currency holders. The greenback is also seen as a rival safe-haven asset to gold during economic and political crises. Headlines from Russia provided some support to gold on Tuesday as investors sought a safe haven, but the Ukraine crisis has not been as much of a bullish story recently for bullion as it was a few weeks ago, and demand from it is unlikely to last through the week, Simpson said. Russian gas supplies to Poland were halted briefly on Wednesday, data from the European Union gas transmission operators showed, raising fears Russia may turn off the gas taps to Ukraine's allies in what it calls "gas blackmail". Most Asian stock indices fell as growing fears over the global economy drove investors to dump riskier assets in favour of safe havens such as the U.S. dollar and government bonds.
  • Oil prices extended gains on Wednesday amid simmering geopolitical tensions as Russia cut gas supplies to Bulgaria and Poland, while hopes of Chinese economic stimulus buoyed the demand outlook. Crude prices settled about 3% higher on Tuesday in volatile trade as the market is torn between supply and demand concerns over Russian oil and gas disruption and a worsening global economic outlook. Russian energy giant Gazprom (MCX:GAZP) said on Wednesday it has completely halted gas supplies to Bulgaria and Poland due to absence of payments from the countries in roubles for the fuel delivery, in a major escalation of Russia's broader row with the West over its invasion of Ukraine, which Moscow calls a "military operation". The International Monetary Fund (IMF) warned on Tuesday that Asia faces a "stagflationary" outlook with the Ukraine war, a spike in commodity costs and a slowdown in China creating significant uncertainty. China's central bank said on Tuesday it will step up prudent monetary policy support to its economy as Beijing races to stamp out a nascent COVID-19 outbreak in the capital and avert the same debilitating city-wide lockdown that has shrouded Shanghai for a month. Any stimulus would boost oil demand. Despite extended lockdowns in Asia's biggest aviation market, China's domestic flight demand has rebounded, pushing global airline capacity to its highest level in 2022 this week, travel data firm OAG said on Tuesday. In supply, U.S. government data on crude inventories is due later on Wednesday. Industry data on Tuesday showed U.S. crude and distillate stocks rose last week while gasoline inventories fell.

 

 
Intraday RESISTANCE LEVELS
27th April 2022 R1 R2 R3
GOLD-XAU 1,900-1,923 1,938 1.950-1,958
Silver-XAG 23.95-24.55 24.90 25.40-26.00
Crude Oil 102.10-102.95 103.90 104.50-106.40
EURO/USD 1.0690-1.0765 1.0820 1.0870-1.0900
GBP/USD 1.2605-1.2690 1.2750-1.2790 1.2840-1.2900
USD/JPY 129.00-129.60 130.00 130.60-131.20

Intraday SUPPORTS LEVELS
27th April 2022 S1 S2 S3
GOLD-XAU 1,890-1,877 1,868 1,857-1,849
Silver-XAG 23.60-23.20 22.85 22.50-22.05
Crude Oil 101.00-99.25 98.50-97.00 96.10-95.00
EURO/USD 1.0610-1.0550 1.0490 1.0450-1.0390
GBP/USD 1.2545-1.2490 1.2420 1.2360-1.2300
USD/JPY 127.50-127.00 126.40 124.90-124.00

Intra-Day Strategy (27th 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$1911.21/oz and low of US$1895.59/oz. Gold down 0.375% at US$1904.98/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 1900-1970 keeping stop loss closing above 1970, targeting 1,889-1877-1868 and 1857-1849. Buy in between 1890-1848 with risk below 1848, targeting 1908-1923-1938 and 1958-1970-1980.

 
Intraday Support Levels
S1     1,890-1,877
S2     1,868
S3     1,857-1,849
Intraday Resistance Levels
R1     1,900-1,923
R2     1,938
R3     1.950-1,958

Technical Indicators

Name   Value Action
14DRSI  

42.603

Buy
20-DMA   1944.89 Buy
50-DMA  

1925.10

Buy
100-DMA   1890.99 Buy
200-DMA   1856.28 Buy
STOCH(5,3)   10.014 Sell
MACD(12,26,9)   3.180 Buy

Silver - XAG

AAFX TRADING

Silver on Tuesday made its intraday high of US$23.92/oz and low of US$23.39/oz settled down by 0.448% at US$23.50/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 23.70-22.05, targeting 23.95-24.55-25.10 and 25.70-26.50-26.75 with stop loss should be place on the breakage below 22.05. Sell in between 23.95-27.00 with stop loss above 27.00; targeting 23.50-23.05-22.85 and 22.50-22.05.

 
Intraday  Support Levels
S1     23.60-23.20
S2     22.85
S3     22.50-22.05

Intraday  Resistance Levels
R1     23.95-24.55
R2     24.90
R3     25.40-26.00

TECHNICAL INDICATORS
Name   Value Action
14DRSI   35.420 Buy
20-DMA   24.86 Sell
50-DMA   24.67 Buy
100-DMA   24.33 Buy
200-DMA   24.22 Buy
STOCH(5,3)   6.135 Sell
MACD(12,26,9)   0.082 Buy

Oil - WTI

AAFX TRADING

Crude Oil on Tuesday made an intra‐day high of US102.32/bbl, intraday low of US$96.79/bbl and settled up by 3.08% to close at US$101.33/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 99.25-102.95 with stop loss at 102.95; targeting 97.00-96.10-95.00 and 93.40-92.40. Buy above 98.00-92.40 with risk daily closing below 92.40 and targeting 99.25-100.60-101.0 and 102.10-102.95.

 
Intraday Support Levels
S1     101.00-99.25
S2     98.50-97.00
S3     96.10-95.00

Intraday Resistance Levels
R1     102.10-102.95
R2     103.90
R3     104.50-106.40

TECHNICAL INDICATORS
Name   Value Action
14DRSI   50.716 Sell
20-DMA   102.33 Sell
50-DMA   99.51 Buy
100-DMA   92.32 Buy
200-DMA   84.53 Buy
STOCH(5,3)   34.206 Sell
MACD(12,26,9)   0.401 Buy

EUR/USD

AAFX TRADING

EUR/USD on Tuesday made an intraday low of US$1.0635/EUR, high of US$1.0737/EUR and settled the day down by 0.704% to close at US$1.0636/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 1.0690-1.1145, targeting 1.0765-1.0720-1.0640 and 1.0600-1.0550 with stop-loss at daily closing above 1.1200. Buy above 1.0610-1.0450 with risk below 1.0450, targeting 1.0765-1.0820-1.0870 and 1.0900-1.0950-1.1105.

 
Intraday Support Levels
S1     1.0610-1.0550
S2     1.0490
S3     1.0450-1.0390

Intraday  Resistance Levels
R1     1.0690-1.0765
R2     1.0820
R3     1.0870-1.0900

TECHNICAL INDICATORS
Name   Value Action
14DRSI   32.509 Buy
20-DMA   1.0869 Sell
50-DMA   1.0995 Sell
100-DMA   1.1143 Sell
200-DMA   1.1338 Sell
STOCH(5,3)   21.688 Sell
MACD(12,26,9)   -0.007 Buy

GBP/USD

AAFX TRADING

GBP/USD on Monday made an intra‐day low of US$1.2570/GBP, high of US$1.2771/GBP and settled the day down by 1.318% to close at US$1.2572/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 1.2545-1.2300 with target 1.2605-1.2690-1.2750 and 1.2790-1.2840-1.2900 with stop loss closing below 1.2500. Sell in between 1.2605-1.2900 with targets at 1.2545-1.2490-1.2420 and 1.2360-1.2300 with stop loss should be 1.3300.

 
Intraday Support Levels
S1     1.2545-1.2490
S2     1.2420
S3     1.2360-1.2300

Intraday Resistance Levels
R1     1.2605-1.2690
R2     1.2750-1.2790
R3     1.2840-1.2900

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 JPY127.01/USD and made an intraday high of JPY128.21/USD and settled the day down 0.720% at JPY127.21/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     127.50-127.00
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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