Daily Market Analysis by CapitalStreetFX

[CSFX.Support]

Daily Technical Analysis by Capital Street FX

Daily Report on September 16, 2016



U.S equities rebounded overnight, powered by a softer greenback and a surge in oil prices. Faltering U.S data released on Thursday indicated underlying weakness in the economy and sapped any confidence that the U.S is strong enough to withstand headwinds stemming from a rate tightening. The prospect of a rate hike next week was certainly off the table, causing the U.S dollar to weaken versus most of its peers.

Consequently, Asian shares rose from a six-week low on Friday. The MSCI Asia Pacific Index climbed 0.5 percent, trimming this week’s slide to 2.3 percent. Japan’s Topix index nudged up 0.4 percent, while benchmarks in Australia, New Zealand and Singapore also gained at least 0.8 percent. Markets in China, Taiwan, Malaysia, and South Korea were closed today for holidays.

Crude prices resumed their decline in Asian trading hours, heading towards finishing lower on the week as traders grow concerned about the resumption of supplies from OPEC members such as Libya and Nigeria, whose production had been disrupted by domestic conflicts and political turmoil. Brent crude was trading around $46.20 per barrel while light sweet crude, WTI slid back to around $43.50 per barrel.

The two central banks holding their policy meetings yesterday, decided to leave their rates unchanged. The Bank of England maintained its benchmark interest rate at a record low of 0.25% while the Swiss National Bank also held its deposit rate unchanged at -0.75%. The Bank of Japan and the U.S Federal Reserve are scheduled to release their rate decisions next week. While a U.S rate hike possibility is almost zero, analysts are still divided on whether the Japanese central bank could make any changes its stimulus program on Sep. 21.



Technicals

AUDUSD



Fig: AUDUSD H4 Technical Chart

AUDUSD is attempting to head out of the downward slopping channel after pulling back from the 50% retracement level. However, besides the upper boundary of the channel, the pair is facing another stiff resistance that is the 38.2% level at 0.75255. With the %K line penetrating the %D line from above, near the overbought area, AUDUSD is expected to give up its rise and tumble.

Trade suggestion

Buy Limit at 0.74900, Stop loss at 0.74520, Take profit at 0.75255



EURJPY



Fig: EURJPY H4 Technical Chart

EURJPY has been locked between the support at 113.900 and the resistance at 116.130 for three weeks. The pair has broken through both the short-term and long-term MA's and is heading down towards the lower boundary of the price range. With the confirmation from the RSI that has lowered below 50, the Euro is expected to lose ground against the Japanese Yen.

Trade suggestion

Sell Stop at 144.535, Stop loss at, Take profit at 114.225



GBPAUD



Fig: GBPAUD H4 Technical Chart

GBPAUD has been in a strong rally with firm support from the two MAs placed below the price action. The pair has consistently reversed higher after every attempt to test the MA20 or the MA50, and this time is not expected to be an exception. The British pound has just pulled back from the 50-period moving average and is expected to extend the rise versus the Aussie.

Trade suggestion

Buy Stop at 1.76300, Stop loss at 1.75750, Take profit at 1.76710



GOLD



Fig: GOLD H4 Technical Chart

Gold has fallen back below the resistance at 1315.00 after the spike in volatility yesterday. At one point the precious metal attempted a peek beyond the major level of resistance at 1325.00. A divergence between the –DI line and the +DI line, combined with a rising ADX, has confirmed a strengthening downtrend. Further declines are forecast.

Trade suggestion

Sell Stop at 1314.00, Stop loss at 1319.00, Take profit at 1305.00



WTI



Fig: WTI H4 Technical Chart

After creating a number of lower lows, the crude price is coming up against a major zone of support at 43.30 once again. This level has seen the price consistently reverse higher since mid-August. The price action has broken through the two MA's from above, and both MA's placed above the price action are exerting significant pressure. However, as the RSI has neared the oversold zone, and upcoming bounce-back could be expected.

Trade suggestion

Buy Limit at 43.30, Stop loss at 42.40, Take profit at 44.10



EURO50



Fig: Euro Stoxx 50 H4 Technical Chart

The Euro Stoxx 50 Index created a small gap down on the market open and is paring yesterday’s gains. The index failed to breach the support at 2948.00 yet again. The two MAs are currently placed above the price action which is supporting the downtrend, after prices broke through both MA's from above, earlier in the month. However, in case bears reign in the market today, the support level at 2948.00 still seems a challenging level, that is unlikely to be breached.

Trade suggestion

Buy Limit at 2948.00, Stop loss at 2920.00, Take profit at 2972.40

 

[CSFX.Support]

Daily Report on September 19, 2016 by Capital Street FX

Asian stocks advanced on Monday following their biggest weekly drop in three months, as a rebound in crude prices bolstered risk appetite ahead of widely watched central bank policy meetings to be held later this week.

Oil prices climbed almost 2 percent on Monday from one-month lows, amid clashes in Libya, which disrupted supplies. In other supporting developments, Venezuela’s President Nicolas Maduro stated that OPEC and non-OPEC producers were close to reaching an output stabilization deal, and the deal could be announced this month to end a persistent supply glut which has resulted in a collapse in crude prices over the past two years.

China’s central bank was reported to have intervened in the currency markets. The cost to borrow the yuan overnight in Hong Kong surged the most since January, soaring by 15.7 percentage points to 23.7 percent. The People’s Bank of China was suspected to be squeezing liquidity to boost the exchange rate and discourage short positions on the local currency before the Federal Reserve’s review of monetary policy, later this week.

The British Pound continued to plummet at the start of the new week amidst rising rumors around the status of the U.K's membership in the single market after Britain leaves the EU. While UK Prime Minister Theresa May is expected to trigger the formal process of leaving the European Union as soon as January or February next year, the country’s politicians are split on whether the UK should try to retain a close link with the EU or break away entirely from the single market.

Japan’s markets are closed Monday for a holiday. China, Taiwan and South Korea have returned after a three-day break.



Technicals

GBPAUD

Fig: GBPAUD H4 Technical Chart

GBPAUD has been nose-diving from two-and-a-half-month highs at around 1.78007 and is heading towards a retest of the last low at 1.72600. As a result of the sharp decline, the MA20 has converged with the MA50 from above, and both MA's are placed above the price action. More downward pressure is expected to be exerted on the pair. However, a market that has already entered the oversold zone may soon witness a bounce-back.

Trade suggestion

Buy Stop at 1.72600, Take profit at 1.74100, Stop loss at 1.72020



EURCHF

Fig: EURCHF H4 Technical Chart

EURCHF has been trading in an ascending trading range with higher lows being created since the start of August. Meanwhile, the pair has continuously failed to knock out the 61.8% level. The ADX is currently under 20, suggesting that no clear trend is being formed in the market. However, with the stochastic lines pointing upwards, combined with the fact that the market has just successfully bounced back after testing the support trendline, EURCHF is forecast to re-attempt a test of the 61.8% resistance.

Trade suggestion

Buy Stop at 1.09450, Take profit at 1.09770, Stop loss at 1.09190



AUDUSD

Fig: AUDUSD H1 Technical Chart

AUDUSD has successfully broken through the resistance at the 38.2% retracement level at 0.75255 and at the same time is on the brink of falling into the oversold area. The pair was trading sideways in Asian trading hours following a strong rise. As the 38.2% level is expected to turn into a new support zone, along with with two MAs placed below the price action, the pair is anticipated to continue its climb.

Trade suggestion

Buy Stop at 0.75450, Take profit at 0.75660, Stop loss at 0.75200



SILVER

Fig: SILVER H1 Technical Chart

Silver has entered a period of consolidation after soaring decisively from the lows at around 18.765 to near the upper boundary of the price range at 19.200. From the stochastic chart, the %K line has crossed over the %D line from above in the overbought territory. Some corrective moves may be witnessed before the metal attempts to resume its rally.

Trade suggestion

Buy Stop at 19.130, Take profit at 19.365, Stop loss at 19.000



COPPER

Fig: Copper H4 Technical Chart

Copper retreated from nearly one-month highs at 2.1668 and has broken below the MA20 at 2.138 from above, signaling a reversal into downtrend. A Near-term target could be around the 50% Fibonacci retracement at 2.1320. On the stochastic charts, the %K line and %D line have dipped to below 50 and are heading towards the oversold zone.

Trade suggestion

Sell Stop at 2.1425, Take profit at 2.1320, Stop loss at 2.1700



SP500

Fig: SP500 H1 Technical Chart

Cautious sentiment ahead of the central bank meetings can be witnessed clearly on the SP500 index chart with lower highs and higher lows. The market does not have a clearly defined direction currently. The futures index opened the Monday session with a wide gap up and broke out of the recent trading range. Support for the up-move are coming from the two MAs placed below the price action and a rising RSI.

Trade suggestion

Buy Stop at 2148.00, Take profit at 2162.90, Stop loss at 2135.00

 

[CSFX.Support]

Investors Fleeing From Crude Even As Supply Controls Look Likely – Whats The Mystery?

Investors Fleeing From Crude Even As Supply Controls Look Likely – Whats The Mystery?

Crude oil started the new week in positive territory after the clashes in Libya eased concerns over a global supply surplus amidst mounting signs that major oil producers are close to an output capping deal. However in a strange twist, oil investors are moving towards the sidelines as the meeting between OPEC and non-OPEC nations to discuss the freeze agreement draws closer.

Fighting between forces loyal to east-based military commander Khalifa Haftar and the local Petroleum Facilities Guard unit at the port of Ras Lanuf forced the tanker Seadelta to suspend the loading of 781,000 barrels of oil for shipment to Italy. Clashes in Libya have halted the loading of the first oil shipment from the port of Ras Lanuf since 2014, and turned a country which had pumped 1.6 million barrels per day into the second-lowest producer in the OPEC with an output of only 260,000 barrels a day in August.

Speaking at the end of a summit of the Non-Aligned Movement on Margarita Island on Sunday, Venezuelan President Nicolas Maduro stated that a deal to stabilize the oil market could be announced as soon as this month.

Iran’s President Hassan Rouhani, speaking on the sidelines of the same conference, said “Tehran welcomes any move aimed at market stability” but did not forget to mention the the words “fairness” and “fair quota” for all oil producers. OPEC’s third-largest producer has been ramping up its output after the sanctions imposed by the West were lifted in January, and is bargaining with OPEC on possible exemptions from output limits.

According to Algeria’s state news agency APS, OPEC Secretary-General Mohammed Barkindo said he was optimistic about the meeting that is to be held on Sept. 26-28, and OPEC may convene an extraordinary formal meeting if oil ministers reach a consensus on oil markets at the informal gathering on the sidelines of a conference of the International Energy Forum later this month.

Ahead of the meeting, speculators trimmed their positions on both short and long futures contracts. According to the Commodity Futures Trading Commission, wagers on falling West Texas Intermediate crude prices fell by 29,195 contracts to 101,079 contracts during the week ended Sept. 13. Long positions declined by 1.5%, bringing the net-long position 14 percent higher but reducing the total number of longs and shorts , also known as the Open Interest, to the lowest level since July.

Fig: WTI D1 Technical Chart

WTI crude has bounced back from two-month lows at 43.00 in early trading today. The bounce back follows a decline that took away 5% of the crude value. There does not seem to be any concrete sign that confirms or signals a reversal into an uptrend. Both MAs are currently placed above the price chart, not to mention the fact that the 20-day MA has crossed the long-term MA50 from above. RSI also remains in bearish territory and is not even close to the neutral 50 line. Thus, the current rally may be limited.

Trade suggestion

Buy Stop at 43.70, Take profit at 44.50, Stop loss at 42.65

 

[CSFX.Support]

AAUD/NZD signal by Capital Street FX

AUD/NZD signal

From GMT 15:35 19/09/2016
Till GMT 21:00 19/09/2016

Buy at 1.03340
Take profit at 1.03670
Stop loss at 1.02900

 

[CSFX.Support]

Gold Signal by Capital Street FX

Gold Advances On Weak Dollar – Funds Liquidating Longs En-Masse – Eyes On FOMC/BOJ

European session. The yellow metal trimmed earlier gains, retreating to around $1315.00 per ounce troy in the wake of the fact that hedge funds were reported to have reduced their long exposure to bullion by the most in more than three months, as they begin to doubt a continuation of the recent post-Brexit gold rally.

According to Commodity Futures Trading Commission data released last Friday, the net-long position in gold futures and options dropped by 11 percent to 248,858 contracts for the week ended Sept. 13. This is the biggest decline since the week ended May 24.

The decline in gold holdings can be explained by cautious sentiment among investors ahead of central bank meetings by the U.S Federal Reserve and the Bank of Japan later this week. Gold is expected to keep moving in a sideways to ascending fashion within a narrow range till the market is able to resolve its direction upwards/downwards, after the FOMC/BOJ meetings.

Trade suggestion

Buy Limit at 1313.00, Stop loss at 1310.00, Take profit at 1317.00

 

[CSFX.Support]

Daily Report on September 20, 2016 by Capital Street FX

Daily Report on September 20, 2016

Market Cautious Ahead Of FED, BOJ - Oil under Pressure

Asian stocks hovered near one-week highs on Tuesday as investors were nervously waiting for the Bank of Japan and the U.S Federal Reserve’s policy decisions tomorrow. U.S equities closed lower overnight after paring earlier gains. The S&P500 inched lower to 2,139.12, the Dow Jones fell 0.02 percent to 18,120.17 and the Nasdaq Composite dropped 0.18 percent to 5,235.03.

Investors are also keeping an eye out for the first debate of the U.S. presidential election which is scheduled for next Monday. According to market sources, traders are “in a cycle in the market where political uncertainty and economic uncertainty are just so high that investors are taking advantage of any move up to sell and any selloff to buy. As a result we’re stuck in a trading range."

Confidence among U.S. Home builders surged to an 11-month high in September, according to data released on Monday from the National Association of Home Builders/Wells Fargo. The gauge for builder sentiment increased to 65 from a downwardly revised reading of 59 in July, indicating an improving housing market. In its monthly report, NAHB noted that builder sentiment is being bolstered by the presence of “more serious buyers.”

Oil prices tumbled today after Venezuela’s Oil Minister Eulogio Del Pino stated on Monday that global crude supplies needed to fall by 10 percent to match consumption levels, which means producers will need to cut their output by 9.4 million barrels per day in order to resolve the oversupply situation.



Technicals

NZDUSD

Fig: NZDUSD H4 Technical Chart

NZDUSD is attempting to escape the current sideways trading range from 0.72500 to 0.73150 after a number of failed attempts. The pair fell back into this price range after breaking below the ascending channel. The RSI index has surpassed the 50 threshold, suggesting moves to the upside. The price has just broken above both the MA's and is attempting to retest the lower boundary of the ascending channel. Still, the resistance at 0.73433 should be watched as a level at which the pair may possibly fail and reverse.

Trade suggestion

Sell Limit at 0.73433, Take profit at 0.73150, Stop loss at 0.73700



EURUSD

Fig: EURUSD H4 Technical Chart

EURUSD extended its decline after peaking just above the 38.3% retracement at 1.11894. A weak bull failed to sustain the up moves and had to let go of its strength. The last three bearish candles with long upper shadows indicate a strong bearish sentiment in the market that depresses the price lower whenever it tends to rise. Both the MA's are placed above the price action and the RSI is well below the neutral threshold at 50. With the bearish sentiment reigning in the market, EURUSD is expected to retest the low at 1.11500

Trade suggestion

Sell Stop at 1.11700, Take profit at 1.11500, Stop loss at 1.11920



EURNZD

Fig: EURNZD H4 Technical Chart

EURNZD has been on a slide and may continue to fall further. The short-term MA20 has just converged with the long-term MA50 from above, and the price action broke below both the MA's from above more than a week ago and continues to head low. This indicates that the downtrend is set to extend further. However, RSI has neared the oversold zone, and the market is approaching an important support level at 1.52110. The market may witness a short term corrective pullback near this level.

Trade suggestion

Sell Stop at 1.52490, Take profit at 1.52110, Stop loss at 1.52910



GOLD

Fig: GOLD H4 Technical Chart

Gold is currently swinging between gains and losses around the level 1315.00 but has been in a downtrend in general. The precious metal has been being constrained under the 20-period moving averages for a while and it seems hard for the price to make a breakout currently amid cautious sentiment on the market. The MA50 has also turned lower and with both MA's placed above the price action and a lacklustre RSI, the market looks to be lacking any momentum at the moment.

Trade suggestion

Sell Stop at 1315.00, Take profit at 1312.00, Stop loss at 1318.40



BRENT

Fig: BRENT H4 Technical Chart

Brent crude once again collapsed from the 23.6% Fibonacci level at 46.74 and fell back under the MA20. The steep drop has pushed the market into the oversold zone and a brief period of the market consolidating sideways to upwards on short covering may last until the crude resumes its slide. With both MA's placed above the price action and the stochastics not indicating an end to down-move just yet, the market may continue moving lower.

Trade suggestion

Sell Stop at 45.70, Take profit at 45.30, Stop loss at 46.30



NASDAQ

Fig: NASDAQ H4 Technical Chart

NASDAQ100 index could not resist the pressure of the record high at 4843.89, plummeting decisively to last Friday's low at around 4790.30. The slide only slowed down after the prices hit the MA20 and bounced back. The ADX index has fallen back below 20, showing that no clear trend is being formed in the market as yet. The short and long term MA's are still placed below the price action providing support to the market. However the market seems to be getting top heavy near the highs.

Trade suggestion

Buy Limit at 4790.30, Take profit at 4815.20, Stop loss at 4769.00

 

[CSFX.Support]

GBP/AUD signal by Capital Street FX

GBP/AUD signal

From GMT 11:30 20/09/2016
Till GMT 21:00 20/09/2016

Sell at 1.71800
Take profit at 1.71310
Stop loss at 1.21610

 

[CSFX.Support]

Silver Market Outlook by Capital Street FX

Will A Supply Deficit Power Silver Higher Post Central Bank Meetings?

Silver inched higher in European trading hours on Tuesday, extending yesterday’s gains after two consecutive weeks of closing in the red. Year to date, the grey metal has outperformed gold, oil and many other commodities thanks to a softening dollar, highly volatile markets and growing global demand.

There is only one day until the U.S Federal Reserve and the Bank of Japan announce their rate decisions and publish their economic assessments. While the Fed is widely expected to leave interest rates unchanged, the BOJ remains a mystery when it comes to which stimulus measure will be deployed. Possible options not only include cutting rates further into negative territory, but also buying more bonds and even maintaining current policies as is. All options will be taken into consideration at this week’s meeting. Whatever the outcomes may be, U.S and Japanese economies will continue to remain under accommodative monetary policies, echoing the general tone of policy easing all over the world.

Artificially low interest rates, disappointing economic indicators and political uncertainty (including the Brexit aftermath and upcoming U.S presidential elections in November) have caused investors to flock into safe haven assets such as silver and gold.

In general, silver prices often move in the same direction as gold prices but due to smaller market volume, silver tends to be the more volatile precious metal. Additionally, while gold is a purely monetary instrument and used for investing purposes mostly, silver demand is also derived from industrial applications.

“The World Silver Survey 2016,” an annual report published by The Silver Institute published in May said that the silver market in 2015 witnessed a physical deficit of roughly 130 million ounces, as demand increased by 39 million ounces to 1.17 billion ounces, outpacing 1.04 billion ounces of total supply. 2015 represents the third consecutive year of deficits and marks the second-largest deficit year since 2008.

High demand was driven by higher retail investment, jewelry and silverware fabrication and solar and demand for ethylene oxide catalyst. The report noted that demand for silver in solar panels grew by 23% on a yearly basis to 77.6 million ounces, demand by investors for bars and coins surged by more than 56 million ounces to 292.3 million ounces, while demand from the jewelry and silverware industries increased for the third consecutive year and hit a fresh record high of 226.5 million ounces.

According to a report published in August by Capital Gold Group, demand for silver used in solar panel manufacturing will “sky-rocket in the next five years” as industrial economies such as US, Japan, Germany and China try to bolster their green credentials by shifting from burning fossil fuels to using renewable energies to produce electricity.

Against the background that silver demand is increasing, the supply side seems subdued. Around three quarters of the world’s silver output is a by-product of mining for other metals. Therefore, cuts in capital expenditure and the closure of zinc, lead and copper mines over the last two years due to more stringent environmental policies in China and aging mines in Australia and production cutbacks by the biggest mining companies have effectively driven down the supply of silver.

Fig: SILVER D1 Technical Chart

Silver has been moving sideways for nearly two weeks between the resistance at the 23.8% retracement level at 19.365 and the support at 18.765. As a result, the ADX index has ticked lower below 20, suggesting cautiousness in the market that is keeping both sellers and buyers on the sidelines. The price action is trading very close to the MA’s and the MA’s themselves are tied very close together. Further the RSI is also crawling very close to the neutral level. All of this indicates a market that is range bound for the moment.The metal is expected to continue this current consolidation period until a breakout stemming from the fundamental side, coupled with cues from related markets such as gold and the US Dollar define a new direction.

Trade suggestion

Buy Stop at 19.200, Take profit at 19.370, Stop loss at 18.940

 

[CSFX.Support]

Sugar Trade Idea by Capital Street FX

Will Climate Change Create A Sugar Famine? Longs Suggested As Global Supply Squeezed

Sugar retreated from four-year highs at 22.28 cents per pound reached earlier today. The commodity has surged more than 40% since the start of this year owing to the El Nino weather phenomenon that has disrupted production in major sugar producing countries and caused a shortfall in the 2015/2016 season.

Researchers are forecasting a global deficit of 7.2 metric tons in the upcoming 2016/17 season after a 7.9 metric ton shortage this season. Sugar output from Brazil’s main central and southern sugarcane growing regions in the second half of August dropped by 14% from the first half of last month to 2.54 metric tons.

Furthermore, a significant strengthening in the Brazilian Real (the local currency) based on belief that the new federal administration will succeed in stabilizing the economy and re-attracting investment, has made the local sugar price less attractive for farmers in the world’s top sugar producer.

Trade suggestion

Buy Stop at 22.10, Take profit at 22.28, Stop loss at 21.90

 

[CSFX.Support]

Daily Report on September 21, 2016 by Capital Street FX


Crude Prices Rally As Inventories Fall – All Eyes On FOMC

Oil prices extended gains on Wednesday, supported by a draw-down in U.S. crude inventories and firm import data from Japan. The American Petroleum Institute data on Tuesday reported that U.S oil stocks decreased by 7.5 million barrels last week to 507.2 million barrels, registering the third weekly draw-down in inventories.

Adding to the bullish sentiment in the crude oil market, the Ministry of Finance (MOF) on Wednesday reported that Japan’s crude oil imports rose 0.5% in August from the same month a year earlier. On average, the world's fourth-biggest crude oil buyer imported 3.38 million barrels per day last month.

In the same report, the MOF stated that Japan's exports fell 9.6 percent from a year earlier to 5.316 trillion yen, due to a strengthening Japanese Yen and weak overseas demand. Japanese exports have been sluggish for 11 consecutive months, while imports also declined 17.3% from a year before to 5.335 trillion yen.

In the U.S, new home construction fell by 5.8% in August to a 1.14 million annualized rate, as a plunge in the South, the biggest region for building, outweighed gains in the rest of the country. The report from the Commerce Department on Tuesday also indicated that building permits dropped 0.4% to a 1.14 million annualized rate. Both readings fell short of expectations.

The New Zealand dollar retreated overnight, after Fonterra Co-operative Group, the world's biggest dairy exporter, announced that the Fonterra's GDT Price Index climbed 1.7 percent in the auction held on Tuesday. The average international selling prices for milk rose to $2,975 per ton while volumes dropped 4.6% from the first auction this month to 35,086 tons.



Technicals

GBPUSD



Fig: GBPUSD H4 Technical Chart

The British Pound has been falling steeply over the last week or so, paring most of its gains in the period from mid-August to early September. The pair has broken through the ascending channel and the trendline support connecting the notable highs registered between late July and August. Lower lows created recently on the price chart, alongside with lower lows that have been formed on the indicator chart, indicate overwhelming bearish force in the market. The price action has broken through both the MA's from above and both MA's are now placed above the price action creating further pressure on prices.

Trade suggestion

Sell Stop at 1.29450, Take profit at 1.29000, Stop loss at 1.30000



USDCAD



Fig: USDCAD H4 Technical Chart

USDCAD is moving along the 20-period MA. The pair has not been able to decisively breach this zone of support and has had to reverse higher every time it tends to make a crossover through the MA from above. Bulls have kept the market in the bullish territory for quite a long time and the market is forecast to extend the rally as no fundamental factor will show up until the U.S session. The RSI is placed near the neutral threshold and therefore the market is expected to persist along the current path.

Trade suggestion

Buy Stop at 1.32000, Take profit at 1.32400, Stop loss at 1.31600



GBPCHF



Fig: GBPCHF H4 Technical Chart

GBPCHF has been suffering some selling pressure recently after the pair started retreating from the two-month high at 1.31192 created on September 6. The pair is struggling around the 61.8% Fibonacci level at 1.27024 and is under downward pressure from the two MAs placed above the price action. The market seems to be in a period of consolidation with indicators providing little clarity in terms of decisive direction. GBPCHF is expected to make a break through the 61.8% level to the downside, after completing the consolidation as up-moves are struggling to register any significant levels.

Trade suggestion

Sell Stop at 1.27020, Take profit at 1.26250, Stop loss at 1.27500





WTI



Fig: WTI H4 Technical Chart

U.S crude price has breached the resistance at 44.50 but the up-moves are threatened by the two resistance lines connecting recent highs of significance between the August/September period. The market is in a bullish formation for the first time since last Tuesday, after the price action crossed over both the MA's from below and the RSI providing a confirmation as well. Fundamental data and short-covering are on course to push the commodity towards the 23.6% retracement level at 45.56.

Trade suggestion

Buy Stop at 45.00, Take profit at 45.56, Stop loss at 44.50



COTTON



Fig: Cotton H4 Technical Chart

Cotton has been on a steady rise but currently witnessed some corrective moves after reaching over one-week highs at 70.75 at the market open today. The commodity not only created a gap up in the early Asian session but also covered the gap and is pointing downwards to the 38.2% retracement level at 70.00. As technical indicators are suggesting further advances, the 38.2% level is forecast to be a firm support that will force cotton prices to reverse higher.

Trade suggestion

Buy Limit at 70.00, Take profit at 71.50, Stop loss at 69.30



Dow Jones



Fig: Dow Jones H4 Technical Chart

Dow Jones’ trading range has been shrinking since last Monday and the price action is now in a triangle of congestion. The index has continuously created big gaps on the market open recently, indicating an unstable sentiment among investors. The RSI and Stochastic are nowhere near providing any decisive indications of the state of the market A breakout can be expected through either side with equal probability as the collapse in daily volatility is bound to be followed by a major move in either direction as the triangle resolves itself.

Trade suggestion

Buy Stop at 18250.00, Take profit at 18355.00, Stop loss at 18120.00

 

[CSFX.Support]

Adobe Systems On Cloud 9 – Cloud Computing Powers Profits – Buying Suggested

Adobe Systems On Cloud 9 – Cloud Computing Powers Profits – Buying Suggested

Adobe Systems Inc. looks set to open the U.S session with a gap up on Wednesday after the company reported better-than-expected earnings for the third quarter following the market close yesterday.

For the fiscal quarter ending August 2016, the software company posted earnings of $270.8 million, or 54 cents per share, up from $174.5 million, or 34 cents per share for the same quarter in 2015. Excluding certain items, Adobe’s earnings per share rose to 75 cents, reaching the top end of its forecast range from 69 cents to 75 cents.

Revenue rose 20.4% on a yearly basis to $1.46 billion, thanks to record revenues of $990 million in the Digital Media Solutions segment. Within the segment, the Creative Cloud (CC) and Document Cloud (DC) categories contributed $803 million and $187 million in revenue, respectively, reflecting the effectiveness of the focus towards adoption of cloud technology.

Shantanu Narayen, Adobe president and chief executive officer said that “Our leadership in cloud-based content and data platforms make us a mission critical partner to the world’s biggest brands as they transform how they engage with their customers.”

In a prepared statement, the California-based company’s Chief Financial Officer Mark Garrett stated that he expected “another record quarter” in the current three-month period. Garrett forecast his company’s revenues in the range of $1.55-$1.6 billion for the fiscal fourth quarter, and between $5.8 and $5.85 billion for the whole fiscal year 2016.

Fig: ADOBE D1 Technical Chart

Adobe shares soared back above the daily moving averages yesterday, suggesting a short/medium term bottom and a reversal into an uptrend. As can be seen from the ADX chart, bears are getting weakened. While the ADX has lowered to 28.31 from the highs at 50.27, the +DI line has crossed over the –DI line from below. The RSI index has surpassed the neutral 50 line, providing confirmation for the up-trend. The price action has broken through both the MA’s from below and both MA’s should be underpinning the price moves as solid support going forward.

Trade suggestion

Buy Stop at 101.70, take profit at 104.05, stop loss at 98.50

 

[CSFX.Support]

FedEx Delivers Better Than Expected Profits – Traders Ready To Pack In Long Positions

FedEx Delivers Better Than Expected Profits – Traders Ready To Pack In Long Positions

FedEx Corp. reported better-than-anticipated earnings for the quarter ended August after the closing bell yesterday. The shipping and logistics company’s operational results for the first quarter of fiscal year 2017 topped expectations even though its acquisition of TNT Express NV cost the company nearly $5 billion in May.

FedEx reported $14.7 billion in sales and $715 million earnings or $2.65 a share in the quarter, after deducting 25 cents per share for all the costs associated with TNT.

The package-delivery giant lowered its yearly guidance for the fiscal year ending in May 2017 to a range from $10.85 to $11.35 a share, down from the previous forecast of $11.75 to $12.25, referring the acquisition with TNT and the sluggish global economy as reasons for the adjustment.

Trade suggestion

Buy Stop at 168.00, Take profit at 169.50, stop loss at 166.50

 

[CSFX.Support]

Daily Report on September 22, 2016 by Capital Street FX

Asian stocks extended their rally on Thursday for a sixth consecutive trading session, supported by accommodative monetary policies in the U.S., Europe and Asia. The MSCI Asia Pacific Index was up 1.3 percent, taking its cue from the rally on Wall Street overnight after the U.S Federal Reserve echoed the stance adopted by other central banks in maintaining accommodative monetary policy.

The Fed held its target rate for overnight lending between banks in a range of 0.25 percent to 0.50 percent after its two-day meeting that ended on Wednesday. The central bank still indicated a rate hike by the end of this year, but its projection for the number of rate increases next year was trimmed to two from three. While the Nasdaq closed at record highs, all 11 major sectors making up the S&P500 index finished in the green with the best performance coming from the energy sector.

Crude oil gained following an unexpected drop in the weekly crude oil inventory data reported by the U.S. government. The Report by the U.S. Energy Information Administration (EIA) on Wednesday reported that domestic crude inventories fell by 6.2 million barrels last week - for the third week in a row. The commodity continued to rally on Thursday, boosted by the decline in the dollar. Other industrial metals such as copper, aluminum and zinc also climbed.

The New Zealand Dollar weakened after its central bank stated that further policy easing is expected. The Reserve Bank of New Zealand held the official cash rate unchanged at 2 percent on Thursday, but reiterated that “Further policy easing will be required to ensure that future inflation settles near the middle of the target range.”



Technicals

USDCHF

Fig: USDCHF H4 Technical Chart

USDCHF fell through the price range between the resistance at 0.98170 and the support at 0.97803, which marks the 38.2% retracement level. The US Dollar plunged sharply under the influence of aggressively bearish forces, which can be seen in the long bodies of the down candles. The MA20 has penetrated the long term MA50 from above, in addition to the price action crossing through both the MA's from above. Currently both MA's are placed above the price action and the RSI index is beginning to head lower, suggesting that USDCHF may fall deeper towards the 23.6% retracement level.

Trade suggestion

Sell Stop at 0.97000, Take profit at 0.96512, Stop loss at 0.97365



NZDUSD

Fig: NZDUSD H4 Technical Chart

NZDUSD is trading in an ascending channel running parallel to the previous upward trading range. In fact, the lower boundary of earlier last range has turned into the resistance for the current channel. While the RSI indicates that buyers are overshadowing sellers, the stochastic chart is indicating a possible pullback, with the %K line crossing over the %D line from north to south. The RSI index is in neutral territory currently. Trade against the generally upward direction prevailing currently, need to wait for more signals, at least till the RSI surpasses the 50-line.

Trade suggestion

Sell Stop at 0.73230, Take profit at 0.72900, Stop loss at 0.73650



EURCAD

Fig: EURCAD H4 Technical Chart

EURCAD appears to be in the final stages of a head and shoulders pattern. The pair is heading downwards to the support at the 50% Fibonacci retracement level at 1.45631 after pulling back from over five-month highs at 1.48700 – that was reached mid-September. The slide has sent the pair trading below the two moving averages. The MA20 has converged with the MA50 from above, suggesting further declines. The price action has also broken below both the MA's from above, indicating a bearish setup.

Trade suggestion

Sell Stop at 1.46300, Take profit at 1.45631, Stop loss at 1.47500



SILVER

Fig: SILVER H4 Technical Chart

Silver is experiencing some corrective moves after breaking out of the recent consolidation period and breaching the 23.6% retracement at 19.367. The sharp rally quickly exhausted bulls and has pushed the market in an overblown/overbought state. Silver has retreated from the highest level since September 08 at 19.859. With upward support from the two MAs below, the grey metal is expected to reverse and re-attempt the high at 20.100

Trade suggestion

Buy Stop at 19.850, Take profit at 20.100, Stop loss at 19.500



WTI

Fig: WTI H4 Technical Chart

WTI crude has moved past the 23.6% level at 45.56 after vigorously soaring from the lows at 43.00. The market state reversed from near oversold to almost overbought. The commodity consequently had to retreat to gather itself and regain some bullish momentum. Further advances have been confirmed by the 20-period moving average that has converged with the MA50 from below, with both MA's firmly underpinning the current up-move.

Trade suggestion

Buy Stop at 45.80, Take profit at 46.50, Stop loss at 45.40



FTSE

Fig: FTSE H4 Technical Chart

The FTSE100 is currently moving sideways, but in general, the index has been ticking upwards to retest the resistance at 6880.00. Coupled with the RSI index that is hovering in bullish territory, the %K line has reversed and penetrated the %D line from below, indicating that buyers are dominating the market. The two MAs placed below the price action are forecast to consolidate the uptrend.

Trade suggestion

Buy Stop at 6880.00, Take profit at 6955.00, Stop loss at 6816.00

 

[CSFX.Support]

USD/JPY signal by Capital Street FX

USD/JPY signal

From GMT 08:15 22/09/2016
Till GMT 21:00 22/09/2016

Buy at 100.600
Take profit at 101.200
Stop loss at 100.000

 

[CSFX.Support]

Gold Market Outlook by Capital Street FX

Gold Rally Snaps As Risk Tolerance Rises – Is 1338 Possible?

Gold retreated early in the European session on Thursday. Investors took profits after the rally yesterday that lifted prices by nearly 1.5% on the day, and shifted their attention to riskier assets after the U.S. Federal Reserve kept interest rates unchanged.

Fed Insists on A Rate Hike In 2016
As expected by the majority of market participants, the Fed stood pat on the benchmark rate at the September meeting. The central bank decided to hold its target rate for overnight lending between banks in a range of 0.25 to 0.50%. The Fed stated that the decision did not reflect any lack of confidence in the U.S economy. Policymakers would like to witness more evidence of continued progress towards its goals, before deciding on the next steps.

In the current environment, one of two targets set by the central bank has been reached. The labour market has created an average of 182,000 jobs every month so far this year. Average hourly earnings and participation rate are rising. Nevertheless, inflation is still far below the Fed’s 2% goal. Considering recent disappointing economic data that reflected falling consumer consumption, and weaker activity in the manufacturing and service sectors, the Fed probably needs to leave the low-rate environment intact for some more time to support the economic recovery.

Nonetheless, the central bank also indicated a rate hike by the end of this year. Speaking at the FOMC Press Conference following the rate decision, Fed Chair Janet Yellen said U.S. growth was looking stronger and rate increases would be needed to keep the economy from overheating. According to the CME Group’s FedWatch Tool, traders are pricing in a nearly 60% possibility of a December rate increase.

Gold’s Upside Seems Limited Due To Fading Attractiveness
Gold rose sharply on the deferral of an interest rate hike. A softer dollar, which gold is traded in globally, makes the precious metal less expensive for investors holding other currencies. Low interest rates also boost gold’s appeal as it doesn’t offer a yield and incurs an opportunity cost to the investor for holding it. However, the upside seems limited. Gold’s main function of hedging against risks, is being overlooked as speculators jump into riskier but higher-yield assets such as stocks. Such assets seem to be benefitting from perceptions of a continuation of the low interest rate environment.

On the supply side
Gran Colombia Gold Corp. is forecast to halt production by Friday. A local mining collective, comprised in its majority by illegal miners, convened a strike in Segovia and Remedios, (in which the company’s Segovia Operations are located) and prevented mining activity. Gran Colombia Gold is continuing to produce gold from stockpiles. Still, the supply is limited and not expected to sustain operations into next week.

CEO Lombardo Paredes said that a stoppage could prevent Gran Colombia Gold from reaching a 2016 output target of 145,000 to 150,000 ounces.

Technical Analysis

Fig: GOLD H4 Technical Chart

Gold took off after moving sideways around the 1315 level since the start of this week. The precious metal has successfully breached through the 38.2% Fibonacci retracement at 1330.00. Previously, the strong rally sent the market into the overbought territory. Gold is re-gaining momentum after a slight retreat. Two MAs that have converged and are currently placed below the price action. Thus, the metal is expected to surge and reach the 50.0% level.

Trade suggestion

Buy Stop at 1334.00, Take profit at 1338.50, Stop loss at 1330.00

 

[CSFX.Support]

GBP/CHF signal by Capital Street FX

GBP/CHF signal by Capital Street FX

From GMT 07:35 23/09/2016

Till GMT 21:00 23/09/2016

Sell at 1.26250

Take profit at 1.25750

Stop loss at 1.27000

 

[CSFX.Support]

Daily Report on September 23, 2016 by Capital Street FX

Daily Report on September 23, 2016



Asian shares eased and European shares opened lower on Friday as the U.S dollar rebounded and oil prices cooled down following two sessions of strong rises. The MSCI Asia Pacific Index pared some of the gains from its biggest weekly rally in two months, to trade 0.3% lower, while Japan's Nikkei225 dipped 0.1%. The U.S dollar index, which tracks the strength of the greenback versus a basket of major currencies ticked up 0.14% to 95.50.

Crude prices retreated from two-week highs in early Asian trade, dragged down by a technical sell-off and by cautious sentiment ahead of a gathering of OPEC ministers next Monday in Algeria. On the sidelines of the International Energy Forum, OPEC and non-OPEC members will attend an informal meeting to discuss possible cooperative actions to stabilize the oversupply situation in the oil market.

Data from research group Markit on Friday reported that Japanese manufacturing activity in September expanded for the first time in the last seven months. On a seasonally adjusted basis, the country’s flash Manufacturing Purchasing Managers Index (PMI) rose to 50.3 in the current month from a final reading of 49.5 in August.

In the U.S, jobless claims dropped to their lowest level since July 2015, Department of Labor said on Thursday. The number of individuals who filed for unemployment insurance for the first time during the past week slid to 252,000. The number of weekly jobless claims have remained below the 300,000 level, which is associated with a firming labor market, for an 81st consecutive week,



Technicals

GBPUSD



Fig: GBPUSD H4 Technical Chart

GBPUSD retreated after the price action hit the downward sloping trendline connecting higher highs since June 29. At the same time, the prices fell back below both the long-term and short-term MA's, indicating that the up moves recorded earlier in the week were a result of profit taking by shorts. GBPUSD is expected to extend the slide as the RSI index has dipped below the 50 line, suggesting a comeback by bears.

Trade suggestion

Sell Stop at 1.30200, Stop loss at 1.31200, Take profit at 1.29500



USDJPY



Fig: USDJPY H4 Technical Chart

USDJPY pulled back from the resistance at 101.200 following a period of correction. Bears have jumped in at the right time and restrained the RSI index from breaking above the dividing line between bullish and bearish territory. The price action remains under downward pressure from two MAs placed above the price action. The pair is forecast to re-attempt the support at 100.000.

Trade suggestion

Sell Stop at 100.600, Stop loss at 101.200, Take profit at 100.000



EURCHF



Fig: EURCHF H4 Technical Chart

The Euro has reversed higher versus the CHF, after a sharp decline that sent the pair back below the 50.0% Fibonacci level. The stochastic and RSI charts are both indicating that the pair has pulled back from the oversold zone. However, lower lows simultaneously created in the price action and the indicators still suggest a strong bear that is likely to push the pair towards the 38.2% retracement level.

Trade suggestion

Sell Limit at 1.08860, Stop loss at 1.09100, Take profit at 1.08411



Natural gas



Fig: Natural Gas H4 Technical Chart

Natural gas is moving sideways to ascending pattern, while holding above the support at 2.975, after falling from record highs around 3.090. Long bodies of the bearish candles show the cautious sentiment among investors as the market seems to quieten as it nears the recent highs. We have received a “bounceback” signal from the stochastic chart, which indicates a possible rise in the price. Natural gas may soar back above the short-term MA20, after a brief ongoing test of this level.

Trade suggestion

Buy Stop at 3.010, Stop loss at 2.970, Take profit at 3.030



BRENT



Fig: BRENT H4 Technical Chart

Brent crude is coming off the highs following the strongest rally in the last two weeks. Although the MA20 has penetrated the MA50 from below, the upside in crude prices today seems limited, as buyers who have fueled the surge may attempt to take profits off the table and close out longs ahead of the weekend and the meeting between oil producing nations, right at the start of the next week.

Trade suggestion

Sell Stop at 47.20, Stop loss at 47.80, Take profit at 46.75



EURO50



Fig: EURO 50 H4 Technical Chart

As can be seen from the chart, the lower boundary of the upward slopping trading range which had acted as a support for the Euro Stoxx 50 index, is now playing the role of a resistance from which the market reversed lower. The Stochastics are indicating that this is a correction as the market has entered the overbought zone. With the support from the two MAs placed below the price action, the index is expected to bounce back from the support at 3016.50

Trade suggestion

Buy Limit at 3016.50, Stop loss at 2995.00, Take profit at 3062.00

 

[CSFX.Support]

Nasdaq 100 Slips on Rosengren’s Hawkish Comments – Short Position Favored

Nasdaq 100 Slips on Rosengren’s Hawkish Comments – Short Position Favored

Nasdaq 100 dropped on Friday, denting weekly gains on the face of a strengthening U.S Dollar and retreating oil prices. The dollar climbed against most major currencies following hawkish comments from Boston Federal Reserve President Eric Rosengren that U.S short-term rates should be increased gradually now to avoid economic imbalances and a sudden spurt in rates later on, as such actions usually lead to recessions, going by historical evidence.

The benchmark inched as much as 0.32% lower, with the number of losers and gainers split almost evenly. Shares of JD.com Inc topped the list of best performing components, trading up 2.5%. On the contrary, the biggest loser is Alexion Pharmaceuticals Inc whose shares plunged nearly 4%.

Trade suggestion

Sell Stop at 4875.00, Take profit at 4865.00, Stop loss at 4885.00

 

[CSFX.Support]

Unfazed By German Data, Euro Trades Higher – Some Buying Potential Remains

Unfazed By German Data, Euro Trades Higher – Some Buying Potential Remains

The Euro shrugged off early losses after the release of mixed data from the euro zone, to extend its gains to a third consecutive trading day on Friday. Bullish bias reigned in EURUSD as investors digested the outcome of the U.S Federal Reserve meeting on Wednesday.

Euro-area Economic Growth Slides to A 20-month Low
Data from Markit reported that the euro-area economy’s growth rate slid to a 20-month low in September. The Markit monthly composite PMI remained above the 50 mark that indicates expansion, but inched down to 52.6 in September from 52.9 one month earlier. The service sector weakened to 52.1 – the lowest since December 2014. Meanwhile, manufacturing improved to 52.6 in the current month, beating expectations for a reading of 51.5.

The slowdown in the pace of growth within the EU service sector was largely due to fatigue in Germany, where the service sector delivered its worst performance since May 2013. Europe’s largest economy saw its composite PMI drop to a 16-month low at 52.7 this month, from 53.3 in August. The general number was dragged down by a decline to 50.6 in the country’s service sector.

On the contrary, France posted its strongest performance in 15 months, with the measures for both manufacturing and services improving. According to the Markit report, France’s composite PMI rose to 53.3 from 51.9 in August. In particular, the manufacturing sector index rose to 49.5 in September from 48.5 one month earlier. Likewise, the gauge for services rose to 54.1 – the best result since the start of 2015.

The Pace for Further Hikes Seems to be Decelerating
The Euro declined a little in the early European trading hours but soon regained ground as the U.S dollar has been under greater pressure. Althought a rate hike by the FED in December is quite possible, the pace for further hikes seems to be decelerating.

Looking back to last December when the Fed raised its rates for the first time in a decade, four rate hikes were forecast for the following year 2016. However, until the end of the 2016 September meeting, not even one rate hike has been undertaken by the Fed, as U.S economic growth has remained uneven.

With a labor market moving towards full capacity, Fed chair Yellen said that the case for an interest rate increase had been strengthened. However, considering subdued economic growth abroad and weakness in inflation, as well as relatively sluggish performance in the manufacturing and service sectors at home, the time required for the world’s most powerful central bank to complete its policy normalization process may be longer than initially thought.

Technical Analysis

Fig: EURUSD D1 Technical Chart

Euro found firm support at 1.11500 which has recently helped the pair avoid falling deeper into losses. The currency pair broke above the 23.6% retracement level yesterday and continues heading upwards in the last session ahead of the weekend. The RSI index has just confirmed the uptrend by surpassing the 50 line. Nonetheless, the downward trendline connecting the lower highs over the last couple of months is within sight. The resistance offered by the downward sloping trendline may contain the upside. Thus further gains currently seem limited.

Trade suggestion

Buy Stop at 1.12145, Take profit at 1.12500, Stop loss at 1.11800

 

[CSFX.Support]

Technical Analysis 26th September by Capital Street FX

Daily Report on September 26, 2016



Crude prices nudged up on Monday ahead of the informal meeting between OPEC members led by Saudi Arabia and non-OPEC producers such as Russia on the sidelines of the International Energy Forum in Algeria from Sept. 26-28. Algeria's energy minister Noureddine Bouterfa said on Sunday that all options were possible for an oil output cut or freeze, and “"We will not come out of the meeting empty-handed."

The dollar extended losses against the yen and euro in early Asian trading hours on Monday, as the impending first debate between U.S. presidential candidates is due later today. The market keenly awaits the first of three face-to-face contests between Democrat Hillary Clinton and Republican Donald Trump, which could determine the currency's near-term direction.

New Zealand’s Statistics Bureau reported Monday that the national trade balance widened to a deficit of NZ$1.3 billion on a yearly basis in August, compared to a NZ$730 million shortfall expected. Particularly, exports fell by $323 million to $3.4 billion in August, with dairy and meat products leading the downfall. Meanwhile, goods imports fell $148 billion to $4.7 billion, with capital goods declining $195 million.

In the UK, the latest survey of 115 financial services firms by business lobby CBI and consultancy PwC found that optimism over the outlook for Britain's financial services sector is at its lowest point since the financial crisis. Optimism fell during the three months to September, the third quarter in a row that it has dropped, marking the longest decline since the financial crisis in 2009.



Technicals

GBPUSD



Fig: GBPUSD H4 technical Chart

GBPUSD is once again heading for the support level at 1.29500 which has been holding the currency pair from breaking lower for almost one and a half month. The two MAs placed above the price action are setting a bearish tone for GBP/USD and indicating a possible break through the 1.29500 level. In the event of a continuation lower, the first notable level of support is seen at 1.29000.

Trade suggestion

Sell Stop at 1.29500, Take profit at 1.29000, Stop loss at 1.30000



USDJPY



Fig: USDJPY H4 technical Chart

USDJPY is swinging back and forth within the range between 101.200 and 100.600. The convergence of the ADX line with +DI and –DI lines indicates that no clear impending trend is being formed in the market. With the RSI staying below the average level, sellers are outweighing buyers a little, but the current level of force may not be enough for a breakout of the support at 100.600.

Trade suggestion

Buy Limit at 100.600, Take profit at 101.000, Stop loss at 100.200



AUDUSD



Fig: AUDUSD H4 technical Chart

AUDUSD has been wobbling around the 23.6% Fibonacci level at 0.76147 since last Friday but is expected to pull back from this level as prices seem to be up against solid support which is the short-term MA20. Although the RSI is heading downwards, the index has not fallen below 50, suggesting a strong bull that is still reigning in the market.

Trade suggestion

Buy Stop at 0.76250, Take profit at 0.76730, Stop loss at 0.76000



SILVER



Fig: SILVER H4 technical Chart

Silver is marching towards the 23.6% retracement level. The market is expected to break below this level easily, considering the last four breakouts. A reversal into a downtrend has been confirmed after the price action crossed over the 20-period MA near 19.623 from above. Furthermore, the RSI index which has inched below 50 has also confirmed further declines.

Trade suggestion

Sell Stop at 19.500, Take profit at 19.265, Stop loss at 19.720



WTI



Fig: WTI H4 technical Chart

WTI crude prices have resumed the downtrend after a period of corrective buying. WTI fell nearly 5% in the last session from two-week highs around 46.50 to as low as 44.20, and broke below both MA20 and MA50, consolidating the downward momentum. Sellers are anticipated to send the market lower. As can be seen from the RSI chart, the index remains under the 50 level

Trade suggestion

Sell Stop at 44.50, Take profit at 43.85, Stop loss at 45.10



FTSE



Fig: FTSE H4 technical Chart

FTSE has been on a decline from over one-month highs at 6937.90. Even though the two moving averages are placed below the price action, the index is likely to keep falling as downward pressure is being exerted from parabolic sar band placed above the price action. The %K line is taking the lead ahead of the %D line in the race towards the oversold zone.

Trade suggestion

Sell Stop at 6880.00, Take profit at 6815.00, Stop loss at 6920.50