Daily Market Analysis by CapitalStreetFX

[CSFX.Support]

Kraft Heinz Trade Idea by Capital Street FX

Kraft Heinz Co. Inches Lower Following Mixed Earnings Results

Shares of Kraft Heinz Co. fell 1.16% in extended session after the food giant posted a mixed third-quarter earnings results. While the company’s profit beat estimates, its revenue fell short of expectations.

The Pittsburgh-based company reported Q3 better-than-expected profit at 83 cents per share, which is higher than Wall Street’s 74 cents EPS estimate. Overall, revenue sales declined 1.5% to $6.27 billion from $6.36 billion, assuming Kraft Foods Group and H.J. Heinz had been merged.

For the quarter ended October 2, the world’s fifth largest food and beverage company witnessed declines in net sales year-over-year in half of its four regions. The U.S., Kraft Heinz Co.’s biggest market, posted a 1.2% retreat, while European market fell 14.5%. Canadian area’s sales edged up 2%, and revenue from the rest of the world rose 4.4%.

Trade suggestion

Buy Limit at 85.25, Stop loss at 88.00, take profit at 84.00

 

[CSFX.Support]

EUR/CHF signal by Capital Street FX

EUR/CHF signal by Capital Street FX

From GMT 16:00 04/11/2016
Till GMT 21:00 04/11/2016

Sell at 1.07700
Take profit at 1.07570
Stop loss at 1.07800

 

[CSFX.Support]

Politics To Overshadow Market Fundamentals In Quiet Data Week

Politics To Overshadow Market Fundamentals In Quiet Data Week

Global financial markets were rattled last week after polls showed the U.S. presidential election race between Democrat candidate Hillary Clinton and Republican nominee Donald Trump was tightening. At the close in NYSE, the S&P 500 index declined 0.17% while the NASDAQ Composite index lost 0.24%. The Dow Jones Industrial Average lost 0.24% to hit a new 3-months low.

Overall, opinion polls still give Clinton the edge in national terms, but a tightening race has sapped market confidence and weighed on the dollar. A solid U.S. employment report for October failed to prevent to greenback from sliding against a basket of the other major currencies on Friday as investors remained cautious ahead of the upcoming U.S. presidential elections.

The Labor Department on Friday said that the U.S. economy added 161,000 jobs in October from the prior month. Economists had expected 175,000 new jobs. The unemployment rate dropped back to 4.9% last month from 5% in September, in line with expectation. The data supported the case that the U.S. central bank will hike interest rates at its next policy meeting in December.

The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, slid 0.26% to 96.94. For the week, the index posted a fall of 1.27%.

Sterling ended the week with gains of 2.74% against the dollar after the U.K. high court ruled Thursday that Prime Minister Theresa May must have parliament’s approval to trigger the Brexit process. For the week ahead, U.K. industrial production and trade balance are scheduled for release, but these reports will matter little to a market focused on the U.S. election.

The same is true for the other currencies but the New Zealand dollar. The Reserve Bank of New Zealand is to announce its benchmark interest rate and publish a policy statement on Thursday. The central bank’s decision may be affected by developments of the market after the U.S Election Day on Tuesday. However, the country’s inflation and trade have been falling even though employment growth, dairy prices and business confidence is improving. Therefore, a rate cut by the RBNZ is expected, especially when its housing market is cooling down.

If RBNZ slash its rate next Thursday, it will stand in sharp contrast to the outlook of the Reserve Bank of Australia, which left rates unchanged this past week. The RBA also issued a statement with a relatively optimistic tone, which helped send the Australian dollar sharply higher versus its major peers. Furthermore, Chinese PMI reports were also better than expected, which helped to boost AUD.

Next week will be a quiet week for the Aussie as no important data of Australian economy will be released. Along with the volatility from the USD, the AUD will be driven by economic reports from China. The Chinese closely-watched monthly export and import readings are due on Tuesday. Exports are forecast to fall at an annual rate of 6.0% in October, while Imports are also estimated to continue falling at the rate of -1.0% in the same month. However, October’s readings are expected to show an easing in the rate of decline compared to the prior month.

Meanwhile, inflation numbers out on Wednesday are expected to show further firming of prices in China with both consumer and producer price inflation edging higher. Annual CPI is forecast to rise by 2.1% in October, up from 1.9% the previous month. Besides, PPI is forecast at 0.8% in October after turning positive for the first time in four years in September.

 

[CSFX.Support]

Daily Report on November 07, 2016 by Capital Street FX


Daily Report on November 07, 2016



Global stocks and the U.S dollar were given a fresh boost on Monday after the Federal Bureau of Investigation said it maintained the view that Hillary Clinton’s handling of her e-mails wasn’t a crime. The news dispelled a cloud over the Democrat candidate's presidential campaign two days before the U.S. election, and is likely to rescue the S&P 500 Index from its longest losing streak in more than 35 years.

In in a letter to Congress on Sunday, director James Comey said that no criminal charges were warranted against Democrat Hillary Clinton, after the FBI reviewed new e-mails potentially related to its investigation of Clinton’s use of a private e-mail server. The greenback rose for the first time in seven days against a basket of major currency following the news.

Amidst investor optimism about the victory of Clinton, safe-haven assets declined. The yen weakened more than 1% to 104.578 per dollar after jumping 1.6% last week. The Swiss franc also slipped 1%, after surging 2% the week before. After gaining as much as 2.3% in the week to November 04th amid concern Republican Donald Trump may capture the White House, gold fell around 1.5% to $1,287.80 an ounce on Monday.

Crude prices rallied as Algeria's Energy Minister Nouredine Bouterfa stated on Sunday he was confident OPEC members would stick to a deal made in Algiers in September to cut output, according to state news agency APS. Bouterfa also added that the group's technical committee was working on applying the deal.

The High Level Committee of experts is scheduled to meet again in Vienna on Nov. 25 ahead of the next meeting of OPEC ministers on Nov. 30.



Technicals

EURUSD



Fig: EURUSD H4 Technical Chart

EURUSD is about to break the 50.0%Fibonacci level at 1.10578 after creating a wide gap down on the market open. The pair failed to cover the gap and has been heading downwards since the price action pulled back from two MAs. The short-term MA20 has converged with the long-term MA50 from above, suggesting further down moves.

Trade suggestion

Sell Stop at 1.10500, Take profit at 1.10000, Stop loss at 1.10700



USDCHF



Fig: USDCHF H4 Technical Chart

USDCHF left a gap up on the market open on Monday which sent the price action to cross over the short-term MA20 and turned this resistance into a dynamic support. The 20-period MA has sustained the pair’s bullish momentum after a short slide following the gap. RSI has surpassed the 50 line, indicating that the pair may soar higher.

Trade suggestion

Buy Stop at 0.97800, Take profit at 0.98600, Stop loss at 0.97500



CADJPY



Fig: CADJPY H4 Technical Chart

CADJPY has been struggling under the 38.2% retracement after jumping more than 1% on the opening. The sharp rally has brought the price action to penetrated both long-term and short-term MAs, signaling a reversal into an uptrend. As can be observed from the Stochastic chart, %D line and %K line has been surging. A breakout thought the 38.2% level is expected.

Trade suggestion

Buy Stop at 78.100, Take profit at 78.500, Stop loss at 77.900



GOLD



Fig: GOLD H4 Technical Chart

Gold dropped back to an intra-day low after surging to as high as 1295.72 in an attempt to cover the wide gap down created on the market open. Gold fell back below the 23.6% retracement and may slide deeper to test the support at 1279.00. While RSI is ticking lower, ADX has been soaring, confirming the downtrend.

Trade suggestion

Sell Stop at 1287.00, Take profit at 1279.00, Stop loss at 1295.00



WTI



Fig: WTI H4 Technical Chart

WTI has been trading sideways under the long-term MA50 at 44.80. The commodity has been on a rise after bottoming out at 43.56. RSI index that has surged above 50 line and continues to pointing upwards suggesting a crossover of the price action through the 50-period MA.

Trade suggestion

Buy Stop at 45.00, Take profit at 45.70, Stop loss at 44.60



CAC40



Fig: CAC40 H4 Technical Chart

CAC40 has witnessed a big jump that sent the price above 23.6% level. The index escaped from a six-day losing streak and is on course to pare its losses. The %K line has crossed over the %D line from below and liberated from the oversold zone. With a wide gap between two lines of Stochastic chart, the index is expected to extend its rally.

Trade suggestion

Buy Stop at 4445.00, Take profit at 4473.00, Stop loss at 4420.00

 

[CSFX.Support]

HSBC Trade Idea by Capital Street FX

HSBC’s Profit Tops Estimates, One-time Items Weigh on Bottom Line

HSBC Holdings Plc on Monday reported third-quarter underlying profit that beat analysts’ estimates but overall profit was weighed by the impact from the sale of its Brazilian business.

The Europe’s largest bank said its adjusted pretax profit, which excludes one-time charges, rose 7 percent from a year earlier to $5.59 billion, thanks to attempts of Chief Executive Officer Stuart Gulliver to pare costs and bolster the lender’s capital cushion. In three months to September, the bank’s adjusted revenue added 2.4% to $12.79 billion with adjusted operating costs dropping 3.5% to $7.25 billion.

However, HSBC’s overall profit swung to a loss of $204 million from a year-earlier profit of $5.23 billion, due in part to a $1.74 billion loss from the disposal of its operations in Brazil which was sold to Banco Bradesco S.A. in July.

HSBC shares have rallied more than 11% since August, when it announced a plan to spend up to $2.5 billion in the second half to repurchase shares. The U.K. banking giant said it had completed 59% of its share-repurchase plan, which is expected to conclude in late 2016 or early 2017.

HSBC Trade suggestion
Buy Stop at 595.00, Take profit at 605.00, Stop loss at 590.00

 

[CSFX.Support]

FTSE Market Outlook by Capital Street FX

Clinton Remains Strong Favourite, FTSE 100 Reverses Higher

U.K. stocks jumped on Monday, as investor confidence was fueled by news that the FBI would not bring fresh charges against Hillary Clinton over a batch of newly discovered emails. The news dispelled a cloud over the Democrat candidate’s presidential campaign two days before the U.S. election and triggered dollar buying, which indirectly dampened British Pound price.

The FTSE 100 index lost more than 4.5% last week with every single trading day closing lower partly due to concerns over tightening race between Republican presidential nominee Donald Trump and his Democrat rival Hillary Clinton. Investors’ worries have mounted since the FBI announced on October 28 that it had found new evidence in its investigation of Clinton’s emails.

On the FTSE 100, mining and banking shares were heading the risers as investors piled back into riskier assets. Rising industrial metal prices pushed mining shares up, with Glencore Plc adding 4.12%, BHP Billiton gaining 3.99%. Antofagasta and Rio Tinto plc rose 3.86% and 3.04%, respectively.

However, as haven assets such as gold and silver slipped back, shares of Randgold Resources were down 0.15% and Fresnillo fell 1.54%.

HSBC Holdings plc topped the market and banking stocks following its latest update on third-quarter earnings. HSBC rallied 4.96% after the lender reported underlying profit that beat analysts’ estimates. On the contrary, Tesco dropped 0.77% after its banking service was reported to hit by fraudulent activity.

Fig: FTSE 100 H4 Technical Chart

FTSE 100 created a wide gap up on the market open. The index witnessed a big jump that brought the prices above the 23.6% level at 6742.67. As can be seen from the stochastic chart, the %K line has crossed over the %D line from below, suggesting a reversal into an uptrend. The index is expected to find its resistance at 6920.00.

Trade suggestion

Buy Stop at 6790.00, take profit at 6920.00, stop loss at 6760.00

 

[CSFX.Support]

EUR/AUD signal by Capital Street FX

From GMT 17:00 07/11/2016
Till GMT 21:00 07/11/2016

Sell at 1.43350
Take profit at 1.43000
Stop loss at 1.43550

 

[CSFX.Support]

Daily Report on November 08, 2016 by Capital Street FX


Daily Report on November 08, 2016



Asian shares advanced while European stocks pared losses after opening lower, amidst opinion polls showing Hillary Clinton ahead of Donald Trump. However, financial investors and traders’ caution was evident as the U.S dollar has weakened while gold rose. The dollar index, which measures the strength of the currency against a basket of its peers, has slid 0.14% to 97.60.

According to data from the Customs General Administration of China on Tuesday, China's exports and imports fell more than expected in October. In the last month, the country’s exports and import fell 7.3 percent and 1.4 percent from a year earlier, respectively. While imports extended losses for the second month in a row, exports fell for a seventh month in October, leaving the country with a trade surplus of $49.06 billion, versus forecasts of $51.70 billion.

Weak domestic and global demand has raised fears that a broader recovery in Chine which has been seen in recent months could falter, as analysts have warned that a property boom may be peaking. A red hot housing market, which has generated a significant share of the growth by boosting demand for building materials, has been under control by Chinese government.

Oil prices were higher on Tuesday after the OPEC Secretary- General Mohammed Barkindo stated that Russia is “on board” with an Organization of Petroleum Exporting Countries agreement to snap production to help re-balance the crude market. China imported 6.78 million barrels of oil from abroad in October, down 12.9 percent from the previous month. This is one of the lowest volumes this year on a daily basis.



Technicals

AUDJPY



Fig: AUDJPY H4 technical Chart

AUDJPY has been struggling around the major level at 80.600 since yesterday. The pair reached this level last Monday but failed to make a breakout. The Aussie had to retreat after peeking out of this handle yesterday as the market has entered the overbought zone. After a brief correction, AUDJPY is expected to breach the 80.600 resistance as the pair is being supported by two MAs placed below the price action.

Trade suggestion

Buy Stop at 80.700, Take profit at 81.500, Stop loss at 80.200



EURCAD



Fig: EURCAD H4 technical Chart

EURCAD has been trapped between two MAs since the start of this week following a wide gap down on the market open on Monday. The pair has pulled back consistently after hitting the resistance that is the short-term MA20 and the support which is the long-term MA50. As the pair is lingering around the lower boundary and RSI is indicating a market in favor of sellers, the pair may fall further.

Trade suggestion

Sell Stop at 1.47500, Take profit at 1.46800, Stop loss at 1.47900



AUDNZD



Fig: AUDNZD H4 technical Chart

AUDNZD resumed the downside following a correction on Monday. The pair crawled back from the resistance at 1.05380 and is heading to the support at 23.6% retracement. Before reaching the 23.6% level, the pair need to break below the short-term 20-period MA. As can be observed from earlier cycle, 23.6% level is not a strong support. Therefore, the pair may fall to as low as 1.04500 once it breaks out of the dynamic support.

Trade suggestion

Sell Stop at 1.04900, Take profit at 1.04500, Stop loss at 1.05150



WTI



Fig: WTI H4 technical Chart

WTI crude price has been on a steady rise which helped the price action cross over the short-term MA20. The prices trimmed its slide on last Friday after having fallen for more than 2 weeks. The RSI index has been soaring to as high as 47.00. However, to confirm an uptrend, we may need to be patient until the RSI surpasses 50.

Trade suggestion

Buy Stop at 45.25, Take profit at 46.00, Stop loss at 44.70



Natural Gas



Fig: Natural gas H4 technical Chart

Natural Gas has dropped back below the 38.2% Fibonacci level at 2.804 after moving indecisively around this level for nearly a week. The commodity has broken below the short-term MA20 as well and is heading downwards to the support at 2.670. RSI is pointing to the oversold zone, confirming the downtrend.

Trade suggestion

Sell Stop at 2.750, Take profit at 2.670, Stop loss at 2.820



EURO STOXX 50



Fig: EURO STOXX 50 H4 Technical Chart

Euro Stoxx 50 extended its gains on Tuesday despite a small gap down on the market open. The index has been supported by the 38.2% Fibonacci level and the short-term MA20. As can be observed from the indicator chart, RSI is heading upwards, suggesting further advances. The index is expected to test the resistance at 3040.00.

Trade suggestion

Buy Stop at 3015.00, Take profit at 3040.00, Stop loss at 2995.00

 

[CSFX.Support]

AUD/USD signals by Capital Street FX

AUD/USD signals by Capital Street FX

From GMT 07:00 08/11/2016
Till GMT 21:00 08/11/2016

Sell at 0.76900
Take profit at 0.76500
Stop loss at 0.77060

 

[CSFX.Support]

SP500 Trade Idea by Capital Street FX

SP500 Spikes After Treading Water In Early Trade – Long Position Suggested

U.S. stocks rallied after struggling to find direction in early trading, as Americans cast their ballots amid polls showing Hillary Clinton ahead of Donald Trump in the race to the White House.

The S&P 500 Index has risen nearly 0.6% on the day, set for its biggest back-to-back gain since June. Investors were awaiting the outcome of a tight U.S. presidential race. Polls will begin to close at 00:00 GMT on Wednesday, with the first meaningful results due about an hour later. The winner will be officially announced on the U.S. television networks a few hours later.

Updating the polls, Bloomberg reported that a provider of real-time analysis of voter turnout estimates that Clinton has earned more early votes than Trump in battleground states including Florida, Iowa and Nevada.

Trade suggestion

Buy Stop at 2145.00, take profit at 2155.00, stop loss at 2135.00

 

[CSFX.Support]

CVS Trade Idea by Capital Street FX

CVS Reports Improving Earnings Reports But Slashes Guidance

Shares of CVS Health Corp dropped more than 14% in premarket trading on Tuesday after the drugstore chain cut its 2016 adjusted earnings forecast and gave downbeat projections for the coming fiscal year. The company cited slowing prescription growth and its integrated model as factors that caused fewer people to fulfill retail prescriptions at its pharmacies.

CVS cut its 2016 adjusted earnings forecast to $5.77-$5.83 per share from its prior forecast of $5.81-$5.89 per share.

For its third quarter, CVS reported a profit that was rose from the same period last year. The company said its bottom line rose to $1.75 billion, or $1.64 per share, up from $1.43 billion, or $1.28 per share, in last year’s third quarter.

The No. 2 U.S. drugstore chain by store count announced revenue for the quarter rose 15.5% to $44.62 billion, compared to $38.64 billion last year. The increase was helped by strong demand for its pharmacy benefit management services, but missed the average analysts’ estimate of $45.29 billion.

Trade suggestion

Sell Stop at 70.80, Take profit at 65.00, Stop loss at 75.00

 

[CSFX.Support]

Daily Report on November 09, 2016 by Capital Street FX


Daily Report on November 09, 2016

Asian shares started the day higher but soon declined as Republican Donald Trump consistently took the lead over his rival, Democrat Hillary Clinton throughout the vote count. Markets in Japan, New Zealand, Hong Kong, etc. fell the most since at least since June 24 after Trump stunned investors by winning the White House race. The unexpected result of the U.S. presidential election sent markets into turmoil reminiscent of Brexit vote.

As global risk securities tumbled, traders flocked into safe-haven assets including the yen and gold. Gold soared as high as $1337.16 per ounce – the highest since September 27, while the pair USDJPY fell to over one-month lows at 101.183. Uncertainties over upcoming changes in the framework of the world, in terms of economies, national security and foreign policy roiled global markets.

European stocks and U.S. equity futures also plunged on Wednesday in the wake of Donald Trump's surprise victory. Investors had priced a win for Clinton, who was expected to bring stability and continuity to the financial market, especially regarding Trump's protectionist. However, the sell-off calmed as speculators took profit and after Trump's acceptance speech which was considered to be balanced and conciliatory.

Crude price fell almost 4% to the lowest since August in Asian trading but recovered some of its losses later. Oil’s slide on early trade was also due to a report by industry group the American Petroleum Institute showed U.S. crude inventories rising by 4.4 million barrels last week. The U.S. government's official supply report is due for release later today.

 

[CSFX.Support]

USDMXN Trade Idea by Capital Street FX

Mexican Peso Scales Back After Hitting Record Low on Trump Win

The Mexican Peso pared earlier losses after having plunged as much as 13% on Wednesday, swept sharply lower by Donald Trump’s surprise victory in the U.S. presidential election.

The Republican Party nominee upended market expectations which had called for a White House win for Clinton, as the candidate promised more stability and continuity to the financial market.

The pair USDMXN rose to the record high at 20.769 peso per dollar amidst fears that Trump, who will become the 45th president of the United States, will renegotiate or even end free-trade agreements with countries including Mexico.

At the time of publication, the pair has dropped back below the 20.000 threshold and may find support at 19.500.

Trade suggestion

Sell Stop at 19.900, take profit at 19.500, stop loss at 20.100

 

[CSFX.Support]

Oil Market Outlook by Capital Street FX

Oil Recovers From Losses – Will Trump Be The Favourite For Oil Prices?

Crude oil prices ticked higher on Wednesday, recovering from initial fall after U.S. election result which called for a victory for Republican Party nominee Donald Trump.

U.S. oil prices fell almost 4% to as low as $43.05 per barrel in Asian trading hours before bouncing back to trade around $44.85 per barrel at the time of writing.

Weekly report from the Energy Information Administration on Wednesday was mixed as it showed a larger-than-expected rise in crude oil inventories but pointed to a decline in gasoline and distillate fuel stockpiles.

Data from the U.S. EIA indicated that domestic crude supplies rose by 2.4 million barrels, while distillate fuel stocks were down 1.9 million barrels in the week ended Nov. 4. Reports from oil-field service company Baker Hughes Inc. last Friday showed U.S. oil production continued to rise as drillers add more rigs to the nation’s fields. The number of rigs drilling for oil in the U.S. rose by nine in the past week to 450.

The surprising U.S. election result sparked a flight from risky assets in Asian trade, which prompted traders from oil investments to find shelters at traditional havens such as gold or Japanese Yen. However, the fact that Donald had pledged to ease regulations that weighed on coal and petroleum sectors. In his presidential campaign, Trump had also promised to review a deal to lift sanctions on oil-rich Iran, while criticized Obama for participating in global efforts to curb climate change.

Crude prices pulled back from the 43.05 threshold where it also had to crawled back on twice since the start of September. As can be indicated by the RSI chart, the oil market rebounded near the oversold zone. The price is heading upwards but a resistance at 23.6% Fibonacci retracement is within the sight and may cause the price action to go sideways or retreat, as the market is still in the bearish zone.

Trade suggestion

Buy Limit at 45.35, take profit at 46.00, stop loss at 45.00

 

[CSFX.Support]

AUD/JPY signal by Capital Street FX

AUD/JPY signal by Capital Street FX

FromGMT 18:00 09/11/2016
TillGMT 21:00 09/11/2016

Buy at 80.600
Take profit at 81.500
Stop loss at 80.000

 

[CSFX.Support]

Daily Report on November 10, 2016 by Capital Street FX

Daily Report on November 10, 2016



Asian shares rebounded from their steepest slide since Brexit while European equities opened higher, boosted by Donald Trump’s spending pledges in the U.S. While MSCI Asia Pacific Index rose by the most since February, futures on the U.S. benchmarks climbed after swinging wildly in the last session. Trump has signaled he would spend more than $500 billion to rebuild U.S. infrastructure and also pledged to lower taxes.

Bonds tumbled while the U.S. dollar advanced amid speculation Trump’s spending plans will fuel inflation and spur economic growth. According to the CME Group’s Fed Watch Tool, the market-implied probability of a December interest-rate hike by the Federal Reserve, jumped above 80% after dropping to less than 50% as election results pointed to a Trump triumph.

San Francisco Fed President John Williams on Wednesday said that the case for gradual interest-rate increases “still makes sense to me.” St. Louis Fed chief James Bullard is expected comment on the policy outlook when he speaks at the Commerce Bank conference, in St. Louis on Thursday. Meanwhile, Fed Vice Chairman Stanley Fischer will be attending an annual gathering of central bankers from the Americas in Santiago, Chile.

New Zealand’s dollar fell after its central bank cut its benchmark interest rate to a fresh record low at 1.75%. The RBNZ expressed concern about the currency’s strength as a strengthening NZD has weighed on the growth of New Zealand’s inflation, which is standing at 0.4% and remains far below the RBNZ’s target band.

The Yuan slipped to a six-year low as investors concern about China’s exports that will be hit under Trump’s presidency. The new president of the U.S. had called China a "grand master" at currency manipulation and threatened tariffs of up to 45% on imports from the Asian nation during his campaign.



Technicals

EURUSD



Fig: EURUSD H4 Technical Chart

EURUSD collapsed after soaring sharply in early trade yesterday. The pair has paired all of its gains which had brought the price to as high as 1.12988 – the peak in the last two months. A steep fall caused Euro to breached three major Fibonacci levels in a row and may send the pair to test the support at 1.08500 again. RSI index pointing downwards and short-term MA20 crossing over long-term MA50 support the down moves.

Trade suggestion

Sell Stop at 1.09000, take profit at 1.08500, stop loss at 1.09300



USDCHF



Fig: USDCHF H4 Technical Chart

USDCHF bottomed out at 0.95486 after falling off from as high as 0.98339 on Wednesday. The pair has recovered all of its losses before entered penetrating the trading range from 0.98600 to 0.99550. As the 20-period MA has converged with the 50-period MA, the pair is expected to re-attempt the upper boundary at 0.99550.

Trade suggestion

Buy Stop at 0.98900, take profit at 0.99550, stop loss at 0.98500



AUDJPY



Fig: AUDJPY D1 Technical Chart

AUDJPY is struggling around the solid resistance at 81.500.The pair has had to reverse lower against this level four times since it breached the handle five months ago. A slide yesterday sent the ADX index – the gauge measuring the trend strength – to below 20. However, two MAs placed below the price action are supporting the uptrend to surge higher.

Trade suggestion

Buy Stop at 81.900, take profit at 84.000, stop loss at 80.600



Natural Gas



Fig: Natural Gas H4 Technical Chart

Natural gas crawled back from the resistance at 2.720. The price has been under downward pressure from the short-term MA20 which may depress the price to as low as 2.573 – the 50% Fibonacci retracement. While the %K line has crossed over the %D line from above, the ADX is at high level, indicating the downtrend.

Trade suggestion

Sell Stop at 2.650, take profit at 2.573, stop loss at 2.700



GOLD



Fig: GOLD H4 Technical Chart

Gold bounced back after hitting a couple of moving averages. The metal vacillated strongly yesterday and had surged to one-and-a-half-month high before paring all of its gains. RSI reached the 50-line as gold corrected from the support at 1271.00. However, the precious metal may fall deeper, as weighed by two MAs hanging above the price chart.

Trade suggestion

Sell Stop at 1280.00, take profit at 1271.00, stop loss at 1285.00



SP500



Fig: SP500 H4 Technical Chart

U.S. SP500 index has enjoyed its steepest one-day advance on record. SP500 breached the resistance at 2155.00 and is on track to retest its all-time record high level at 2192.86 logged in mid-August. Soaring ADX index with +DI at high level consolidates further increases.

Trade suggestion

Buy Stop at 2182.00, take profit at 2192.86, stop loss at 2172.00

 

[CSFX.Support]

Mylan Market Outlook by Capital Street FX

Mylan Announces Profit Losses, Weighed by Lower EpiPen Sales

Shares of Mylan N.V. ( MYL ) fell 2.1% to $38.10 in late trading on Wednesday after the drugmaker announced its third-quarter results with a loss in earnings and a weaker-than-expected revenue.

Mylan posted a net loss of $119.8 million for the third quarter, or 23 cents per share, as the company had to set aside more money for a $465 million settlement with the U.S. Justice Department over Medicaid rebates for EpiPen announced last month. A year ago, Mylan generated a profit of $428.6 million, or 83 cents per share.

Excluding one-time items including the settlement expense, Mylan said it had adjusted earnings of $1.38 per share, which missed forecast calling for $1.45 EPS.

Third-quarter revenue increased to $3.06 billion from $2.70 billion the prior-year period thanks to acquisitions of Renaissance Acquisition Holdings in June and Meda AB two months later. However, Mylan’s revenue failed to reach analysts’ consensus of $3.12 billion.

The drugmaker sold fewer EpiPen emergency allergy shots last quarter amid speculations that a cheaper version of the product could be launched in the first half of December. EpiPen has been a major driver of profit at Mylan but the life-saving hand-held auto-injector has been criticized for a too high price. Under investigation over steep price increases for its EpiPen products, Mylan has offered a half-price, generic version of the medical device.

Due to the lack of wholesaler purchases in the quarter in anticipation of the upcoming generic launch, specialty net product sales declined 4% to $418.7 million from the prior-year period.

Mylan’s revenue was saved by generics segment whose sales increased 17% year over year to $2.61 billion in three months to September.

The company still faces investigations by the West Virginia attorney general and the U.S. Securities and Exchange Commission, not to mention the fact that potential investigation by federal antitrust regulators, which have been urged by the Senate Judiciary Committee.

Mylan lowered its full-year forecast for adjusted earnings of $4.70 to $4.90 per share, and maintained 2018 earnings projection of $6 per share.

Trade suggestion

Buy Stop at 39.05, Take profit at 40.40, Stop loss at 38. 85

 

[CSFX.Support]

Copper Trade Idea by Capital Street FX

Copper Soars Nearly 7% As Trump’s Victory Promises Robust Growth

Copper led gains in commodities on Thursday, rising to a 16-month high, as the metal has been boosted by bets on a rise in infrastructure spending in the U.S.

Copper, which is regarded as a bellwether of the global economy due to its wide range of industrial uses, hit the highest level since mid-July, 2015 at $2.5508/lb.

The commodity looks set to close the week sharply higher amid speculation that Donald Trump’s expansionary fiscal policies and infrastructure improvements will boost metal prices worldwide.

In his victory speech, Trump stated that he would embark on a project to rebuild American infrastructure and would double U.S. economic growth.

Trade suggestion

Buy Stop at 2.5400, take profit at 2.5630, stop loss at 2.5300

 

[CSFX.Support]

GBP/JPY signal by Capital Street FX

GBP/JPY signal by Capital Street FX

From GMT 17:10 10/11/2016
Till GMT 21:00 10/11/2016

Buy at 133.600
Take profit at 135.000
Stop loss at 132.400

 

[CSFX.Support]

UR/GBP signal by Capital Street FX

UR/GBP signal by Capital Street FX

From GMT 07:30 11/11/2016
Till GMT 21:00 11/11/2016

Sell at 0.86600
Take profit at 0.85900
Stop loss at 0.87300