AAFX TRADING

Daily Market Lookup

  • The dollar was down on Tuesday morning in Asia as investors are keeping an eye on posturing from major central banks to curb inflation. Japanese Finance Minister Shunichi Suzuki said earlier on Tuesday that he was concerned about the recent sharp yen weakening and would appropriately respond to exchange market moves if necessary. The AUD/USD pair was up 0.32% to 0.6970, and the NZD/USD pair stabilized at 0.6334. The Reserve Bank of Australia (RBA) Governor Philip Lowe reiterated Tuesday that further interest rate hikes likely loom. China saw COVID-19 flare-up in cities such as Shenzhen, sparking worries about the second-largest country’s uncertain recovery path. Major central banks took actions to tame inflation and raise interest rates, adding to investors’ concerns about slowing economic growth. St. Louis Fed President James Bullard warned that U.S. inflation expectations could “become unmoored without credible Fed action,” while former Treasury Secretary Lawrence Summers suggested that to counter price pressures, the U.S. jobless rate would need to rise above 5% for a sustained period. In Europe, European Central Bank President Christine Lagarde said that officials intend to hike interest rates in July and September despite growing concerns over financial-market tensions. U.S. Federal Reserve Chair Jerome Powell will testify to the Senate and the House on Wednesday and Thursday.
  • The dollar slipped in early trading in Europe on Monday, failing to get much support from talk of the Federal Reserve hiking again by 75 basis points at its next meeting. Risk sentiment was supported by the decision of the People's Bank of China overnight not to cut its benchmark Prime Loan Rate from 3.70%, despite a clear decline in inflationary pressures and a rise in lockdown-driven unemployment in recent weeks. The offshore yuan rose 0.4% to 6.6836 in response. On Sunday, Fed Governor Christopher Waller had said he was "all in" on bringing down inflation and was open to another rate hike of 75 basis points when the Fed meets again in July. He ruled out the more extreme scenario of a hike of 100 basis points, warning that markets would suffer a "heart attack." Waller is a known inflation 'hawk' and his rejection of a full point rise was taken as a sign that there will not be any consensus for such a step in the foreseeable future, despite comments from both Treasury Secretary Janet Yellen and Waller's Fed colleague Loretta Mester that inflation is likely to remain high for the rest of the year. Trading in the dollar is, in any case, set to be subdued on Monday by the U.S. holiday. The euro meanwhile, shrugged off news that French President Emmanuel Macron had lost his majority in parliament at national elections due to a surge in support for parties at both extremes of the political spectrum, casting doubt over his ability to extend the broadly pro-business agenda. Over the weekend, the German government committed more funds to securing alternative gas supplies for the winter and also announced it would restart a handful of coal-fired power stations, a strong policy signal of support for the economy from a government that includes the environmentalist Greens. Elsewhere, the pound edged higher, despite the prospect of a week of travel disruption from strikes on national rail and London Underground networks.
  • Oil prices rose 1% on Tuesday, clawing back more of last week's losses as investors focused on tight supplies of crude and fuel products rather than concerns about a recession dampening demand going forward. Oil was up on Tuesday morning in Asia as worries about tight supplies grew. Investors are concerned about the tight supply as the West imposes sanctions on Russian oil. Questions also remain on how Russian production might fall because of sanctions on equipment needed for output, analysts said. The market is assessing the tension between supply concerns and uncertainty over global growth in the face of inflation and rising interest rates, analysts said. China also saw COVID-19 flare-ups in cities including Shenzhen, which added to concerns about weaker oil demand Investors now await U.S. crude supply data from the American Petroleum Institute, due later in the day. Weekly U.S. petroleum inventory data will be delayed by a day this week due to the Juneteenth holiday on Monday, with the American Petroleum Institute industry data for the week ending June 17 due on Wednesday and U.S. Energy Information Administration data on Thursday.

 

 
Intraday RESISTANCE LEVELS
21st June 2022 R1 R2 R3
GOLD-XAU 1,840-1,851 1,859 1,870-1,879
Silver-XAG 21.80-22.05 22.45 23.05-23.55
Crude Oil 109.75-110.50 113.00 114.40-115.80
EURO/USD 1.0550-1.0630 1.0690 1.0770-1.0840
GBP/USD 1.2310-1.2390 1.2450 1.2490-1.2550
USD/JPY 135.20-136.00 136.40 137.00-137.90

Intraday SUPPORTS LEVELS
21st June 2022 S1 S2 S3
GOLD-XAU 1,820-1,807 1,798 1,787-1,775
Silver-XAG 21.20-20.90 20.45 20.10-19.50
Crude Oil 108.00-107.00 105.50 103.30-101.00
EURO/USD 1.0460-1.0410 1.0390 1.0330-1.0290
GBP/USD 1.2200-1.2150 1.2100 1.2050-1.2010
USD/JPY 134.60-133.50 132.90-132.00 131.20-130.60

Intra-Day Strategy (21st June 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 Monday made its intraday high of US$1845.99/oz and low of US$1834.66/oz. Gold down 0.0696% at US$1835.60/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 1851-1900 keeping stop loss closing above 1900, targeting 1840-1831-1820 and 1801-1787. Buy in between 1831-1786 with risk below 1786, targeting 1851-1859-1870 and 1879-1890.

 
Intraday Support Levels
S1     1,820-1,807
S2     1,798
S3     1,787-1,775
Intraday Resistance Levels
R1     1,840-1,851
R2     1,859
R3     1,870-1,879

Technical Indicators

Name   Value Action
14DRSI  

46.024

Buy
20-DMA   1857.00 Buy
50-DMA  

1878.02

Buy
100-DMA   1875.88 Buy
200-DMA   1855.89 Buy
STOCH(5,3)   47.831 Sell
MACD(12,26,9)   -11.400 Buy

Silver - XAG

AAFX TRADING

Silver on Friday made its intraday high of US$21.75/oz and low of US$21.44/oz settled up by 0.283% at US$21.54/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 21.20-19.60, targeting 21.80-22.05-22.50 and 23.05-23.95-24.55 with stop loss should be place on the breakage below 19.50. Sell in between 22.05-23.75 with stop loss above 23.75; targeting 21.30-21.05-20.60 and 20.00-19.60.

 
Intraday  Support Levels
S1     21.20-20.90
S2     20.45
S3     20.10-19.50

Intraday  Resistance Levels
R1     21.80-22.05
R2     22.45
R3     23.05-23.55

TECHNICAL INDICATORS
Name   Value Action
14DRSI   50.588 Buy
20-DMA   22.12 Sell
50-DMA   22.83 Sell
100-DMA   23.32 Sell
200-DMA   23.68 Sell
STOCH(5,3)   71.135 Buy
MACD(12,26,9)   0.272 Buy

Oil - WTI

AAFX TRADING

Crude Oil on Monday made an intra‐day high of US109.08/bbl, intraday low of US$108.68/bbl and settled up by 0.164% to close at US$108.68/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 109.75-115.80 with stop loss at 115.80; targeting 108.00-106.20-105.50 and 103.30-101.00. Buy above 108.00-101.00 with risk daily closing below 101.00 and targeting 109.75-110.50-113.00 and 114.40-115.80-117.10.

 
Intraday Support Levels
S1     108.00-107.00
S2     105.50
S3     103.30-101.00

Intraday Resistance Levels
R1     109.75-110.50
R2     113.00
R3     114.40-115.80

TECHNICAL INDICATORS
Name   Value Action
14DRSI   40.820 Sell
20-DMA   113.45 Buy
50-DMA   109.63 Buy
100-DMA   103.28 Buy
200-DMA   93.29 Buy
STOCH(5,3)   20.305 Sell
MACD(12,26,9)   2.097 Buy

EUR/USD

AAFX TRADING

EUR/USD on Monday made an intraday low of US$1.0472/EUR, high of US$1.0545/EUR and settled the day up by 0.326% to close at US$1.0508/EUR.

Technicals in Focus:

On daily charts, prices are sustaining above 50DMA (1.0736), which become immediate support, break below will target 1.0647. 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 1.0550-1.0795, targeting 1.0390-1.0330 and 1.0290-1.0250 with stop-loss at daily closing above 1.0795. Buy above 1.0460-1.0250 with risk below 1.0210, targeting 1.0550-1.0630-1.0690 and 1.0770-1.0840.

 
Intraday Support Levels
S1     1.0460-1.0410
S2     1.0390
S3     1.0330-1.0290

Intraday  Resistance Levels
R1     1.0550-1.0630
R2     1.0690
R3     1.0770-1.0840

TECHNICAL INDICATORS
Name   Value Action
14DRSI   47.443 Buy
20-DMA   1.0662 Buy
50-DMA   1.0720 Buy
100-DMA   1.0881 Sell
200-DMA   1.1127 Sell
STOCH(5,3)   22.051 Buy
MACD(12,26,9)   -0.0058 Buy

GBP/USD

AAFX TRADING

GBP/USD on Monday made an intra‐day low of US$1.2198/GBP, high of US$1.2280/GBP and settled the day up by 0.307% to close at US$1.2247/GBP.

Technicals in Focus:

On daily charts, prices are sustaining below 20DMA (1.2834) is become immediate resistance level. 14-D RSI is currently in oversold 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 1.2200-1.2010 with target 1.2310-1.2420 and 1.2490-1.2575-1.2650 with stop loss closing below 1.2010. Sell in between 1.2310-1.2630 with targets at 1.2190-1.2150-1.2100 and 1.2075-1.2050 with stop loss should be 1.2630.

 
Intraday Support Levels
S1     1.2200-1.2150
S2     1.2100
S3     1.2050-1.2010

Intraday Resistance Levels
R1     1.2310-1.2390
R2     1.2450
R3     1.2490-1.2550

TECHNICAL INDICATORS
Name   Value Action
14DRSI  

43.373

Buy
20-DMA   1.2388 Sell
50-DMA   1.2570 Sell
100-DMA   1.2820 Sell
200-DMA   1.3096 Sell
STOCH(5,3)   58.703 Sell
MACD(12,26,9)   -0. Sell

USD/JPY

AAFX TRADING

USD/JPY on Monday made intra‐day low of JPY134.52/USD and made an intraday high of JPY135.43/USD and settled the day down 0.0622% at JPY134.86/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 135.20-137.00 with risk above 137.00 targeting 134.00-133.50-132.90 and 132.00-131.20-130.60. Long positions above 134.60-130.60 with targets of 134.60-135.20-136.00 and 136.40-137.00 with stop below 124.30.

 
Intraday Support Levels
S1     134.60-133.50
S2     132.90-132.00
S3     131.20-130.60

INTRADAY RESISTANCE LEVELS
R1     135.20-136.00
R2     136.40
R3     137.00-137.90

TECHNICAL INDICATORS
Name   Value Action
14DRSI   Buy
20-DMA   128.49 Buy
50-DMA   126.58 Buy
100-DMA   122.76 Buy
200-DMA   119.00 Buy
STOCH(9,6)   92.683 Buy
MACD(12,26,9)   0.0102 Sell

AAFX TRADING
AAFX TRADING AAFX TRADING AAFX TRADING AAFX TRADING AAFX TRADING AAFX TRADING AAFX TRADING AAFX TRADING AAFX TRADING