Daily Market Analysis by CapitalStreetFX

[CSFX.Support]

GBP/USD signal by Capital Street FX

From GMT 17:50 16/12/2016
Till GMT 21:00 16/12/2016

Buy at 1.25000
Take profit at 1.25400
Stop loss at 1.24800

 

[CSFX.Support]

Dollar Remains Strong Against Euro and Gold, BOJ Meeting Awaited

Dollar Remains Strong Against Euro and Gold, BOJ Meeting Awaited

The U.S. dollar’s bull ran out of steam on Friday when the currency retreated from a 14-year high on Friday following a rally coming after Fed’s first rate hike in a year. The U.S. dollar index edged lower against a trade-weighted basket of six major currencies, but remained near Thursday’s peak of 103.55, a level not seen since December 2002.

For the week, the index soared around 1.3% as the U.S. Federal Reserve increased its benchmark rates by 0.25 percentage point on Wednesday and signaled a prospect of a more-aggressive rate-hike path in 2017. The central bank’s President Chair Woman Janet Yellen stated that the Fed may raise rates more quickly than previously anticipated with three rate increases in 2017, which is up from the two hikes predicted in September.

In the week ahead, there will be not much in the way of U.S. data but the release of Thursday’s final reading on U.S. third quarter gross domestic product. Market players will be eyeing fresh indications on the strength of the economy and further hints on the future path of monetary policy.

Closing the week, the Japanese Yen fell to 117.97 per dollar, trimming its losses to 2.2% on the week after dropping to Thursday’s 11-month trough of 118.65. The Bank of Japan is expected to hold its negative interest rates and 10-year government bond yield target steady at its monetary policy meeting on Tuesday.

Also on Tuesday, the Reserve Bank of Australia is scheduled to publish the minutes of its latest monetary policy meeting. Investors will be looking for insight into how the RBA’s officials view the economy and their policy options.

Last week was also a big loss for the euro when the single currency plummeted more than 1% and fell as low as 1.0365, the weakest level since January 2003. The pair EURUSD rebounded on Friday, finishing the week at 1.0450.

Gold prices recorded its sixth straight weekly decline on Friday, weighed by expectations for higher U.S. interest rates in the months ahead. Gold for February delivery on the Comex division of the New York Mercantile Exchange ended its last session of the week at $1,137.40 a troy ounce, pulling back from $1,124.30 logged on Thursday, a level not seen since February 2.

 

[CSFX.Support]

Brent Crude Market Outlook by Capital Street FX

Can Weak Dollar and OPEC Deal Beat the Fear of Coming-back U.S. Crude?

Crude prices extended their gains on Monday on the back of a weakening U.S. dollar and anticipation that oil supplies will be tighter next year following the output-cut deal between OPEC and non-OPEC members.

February Brent crude advanced 0.71% to $55.63 per barrel on London’s ICE Futures exchange as market focus shifts back to the recent commitments from world’s top oil producers to trim their production. Almost 1.8 million barrels per day in global supply will be curbed from January 2017. Of that, the OPEC led by Arab Saudi pledged to cut production by 1.2 million barrels per day starting next month while other producers led by Russia committed to a cutback of 558,000 barrels per day.

On the other hand, the U.S. dollar continued to slide from its 14-year high recorded last Thursday. The dollar index, which gauges the relative strength of the greenback versus a basket of other leading currencies, has dropped 0.9% so far on the day. A retreat in the dollar is favorable for oil demand as crude prices tend to become more affordable for any country using its own currency domestically.

However, while major oil producers are making efforts to deplete the global supply glut by sticking to their agreement to cut production next year, U.S. producers, who did not join the production cut deal, are coming back to the market to take advantage of higher oil price. According to energy services firm Baker Hughes, drillers in the U.S. added 12 oil rigs in the week to Dec. 16, bringing the total to 510, the highest since January. The country’s production was also reported to edge higher, soaring from below 8.5 million bpd in July to almost 8.8 million bpd by mid-December.

Fig: BRENT D1 Technical Chart

Brent crude has been on a rise for three consecutive trading days after falling from the high at 57.23. As can be observed from the chart, crude price has been trading in an upwards trading range which has been formed from higher highs and higher lows. Oil price attempted to make a breakout of this range last Monday but failed to sustain its up moves. With RSI is heading upwards, the price action is expected to test the upper boundary but the upside seems limited.

Trade suggestion

Buy Stop at 55.60, Take profit at 56.50, Stop loss at 55.20

 

[CSFX.Support]

CAD/JPY signal by Capital Street FX

From GMT 07:00 19/12/2016
Till GMT 21:00 19/12/2016

Sell at 87.800
Take profit at 87.400
Stop loss at 88.000

 

[CSFX.Support]

Daily Report on December 19, 2016 by Capital Street FX

Daily Report on December 19, 2016



The U.S. dollar, Treasuries bond yields and global shares declined on Monday after soaring last week. Asian equities fell a four-week low with MSCI's broadest index of Asia-Pacific shares outside Japan extending its losses for the third straight day, shedding 0.3 percent. European stocks also declined as investors cashed in profit. After having reached the highest level of the year on Friday, the Stoxx 600 Index retreated, weighed by bank stocks.

The dollar index ticked lower, as heightened geopolitical tensions over China’s seizure of a U.S. naval drone magnified bearish sentiment on the greenback which resulted from profit-taking following the currency’s rally since 2008.

Crude prices extended their gains on Monday on the back of a weakening U.S. dollar and anticipation that oil supplies will be tighter next year following the output-cut deal between OPEC and non-OPEC members. Almost 1.8 million barrels per day in global supply will be curbed from January 2017. However, U.S. producers, who did not join the production cut deal, are coming back to the market to take advantage of higher oil price. According to energy services firm Baker Hughes, drillers in the U.S. added 12 oil rigs in the week to Dec. 16, bringing the total to 510, the highest since January.

Metal prices fell on Monday following data from China that showed growth of housing prices slowed down in November from the month before. According to the report from the National Bureau of Statistics, China’s average price of new homes in 70 cities rose 0.6% in November compared to a 1.1% gain in October thanks to the government’s stringent property-buying controls in major cities and greater scrutiny of loans made to developers.

Elsewhere, Australia Treasury reported its Mid-Year Economic and Fiscal Outlook on Monday, stated that the government forecast a A$10 billion deterioration in its budget deficit over the next four years. The update has mounted concerns about a cut in the country's prized triple-A rating but S&P Global Ratings said the update had no immediate impact on the rating. Nonetheless, the rating agency still warned more revenue or saving steps would be needed to get back to surplus.



Technicals

USDCAD



Fig: USDCAD H4 technical chart

USDCAD rebounded from the 38.2% Fibonacci level at around 1.33100 and is heading upwards to the resistance at 1.34000. In a long term, the pair has been in a downtrend with lower highs formed along the way. In addition, the RSI has neared the oversold zone. Therefore, the upside seems limited.

Trade suggestion

Buy Stop at 1.33650, Take profit at 1.34000, Stop loss at 1.33300



USDJPY



Fig: USDJPY H4 technical chart

USDJPY has rebounded from the short-term 20-period moving average at 117.200 after a slide that sent the market near the oversold zone. As can be seen from the stochastic chart, the %K line has crossed over the %D line from below, suggesting a potential reversal into an uptrend.

Trade suggestion

Buy Stop at 117.600, Take profit at 118.300, Stop loss at 117.300



GBPCHF



Fig: GBPCHF H4 technical chart

After falling out of an upwards slopping trendline, the pair GBPCHF attempted to get back to the uptrend. However, the one-time support has turned into a new resistance which is putting pressure on the pair. RSI has move past the 50 line, indicating a strengthening bearish momentum.

Trade suggestion

Sell Stop at 1.27500, Take profit at 1.27000, Stop loss at 1.27750



WTI



Fig: WTI H4 technical chart

U.S. crude price is struggling around the resistance at 52.30 – the solid level that has been played as both resistance and support for the price since early this month. As the market has been in a bullish zone, the crude price may break above this handle and soar higher.

Trade suggestion

Buy Stop at 52.40, Take profit at 53.10, Stop loss at 52.00

 

[CSFX.Support]

USDJPY Trade Idea by Capital Street FX

USDJPY Plummets Ahead of BOJ’s Policy Decision

The dollar lost ground to its Japanese counterpart on Monday after six consecutive weeks of trading higher. The pair USDJPY fell nearly 1% to as low as 116.616 due to geopolitical tensions over China’s seizure of a U.S. naval drone that magnified bearish sentiment on the greenback which resulted from profit-taking following the currency’s rally since 2008.

The Bank of Japan will hold its final meeting of the year 2016 on Tuesday. The bank is expected to leave policy unchanged as a weakening yen in the last one and a half month has helped boost Japanese exports and inflation expectations.

Meanwhile in the U.S., Federal Reserve Chairwoman Janet Yellen is due to have a speech on the job market at 1:30 p.m. EDT. Yellen’s appearance comes less than a week after the U.S. central bank decided to hike rates and indicated a faster pace of rate increases next year than had previously been expected.

Trade suggestion

Sell Stop at 117.000, Take profit at 116.000, Stop loss at 117.500

 

[CSFX.Support]

Daily Report on December 20, 2016 by Capital Street FX

Daily Report on December 20, 2016



Asian shares declined on Tuesday amid rising political uncertainties globally. Russia’s ambassador to Turkey was shot dead at an Ankara art exhibit by a lone Turkish gunman on Monday evening. The assassination of Russia’s envoy was believed to be a backlash against Russian military involvement in the Syrian civil war. Also contributing to sapping investor confidence in risky assets is violent incidents in Germany which killed 12 people and injured 48 others. Berlin police said they didn’t have firm evidence on whether this was a deliberate attack or just an accident.

The Japanese Yen, which is considered to be one of safe-haven assets, weakened in such a fragile stock market as the Bank of Japan left its monetary policy unchanged. The central bank kept its rate on some bank reserves intact at -0.1 percent and preserved its pledge to keep the yield on the 10-year Japanese government bond at around 0 percent.

As widely expected by economists, the BOJ upgraded its assessment of the economy on Tuesday, forecasting real gross domestic product will rise 1.5 percent in the next fiscal year starting April 1, nominal growth will increase to 2.5 percent and overall consumer prices will advance 1.1 percent. However, inflation expectations will remain in a weakening phase, it said.

Crude prices ticked lower on Tuesday with U.S. West Texas Intermediate crude oil futures trading at $51.87 per barrel while International Brent crude oil futures at $54.78 per barrel, both down from their last settlements. Traders began to unwind positions ahead of the upcoming Christmas weekend and the week running up to New Year.



Technicals

AUDUSD



Fig: AUDUSD H4 Technical Chart

AUDUSD is moving in a thin range after falling as low as 0.72420. The pair broke out of an upwards trading range last Wednesday and has been nose-diving since then. The pair has crossed over two major Fibonacci levels at 38.2% and 50.0% and is likely to test another important support at 61.8%.

Trade suggestion

Sell Stop at 0.72400, Take profit at 0.72100, Stop loss at 0.72550



USDCHF



Fig: USDCHF H4 Technical Chart

USDCHF reversed higher on the support of the short-term MA20. The pair was on a slide since it reached the high at 1.03430. Nonetheless, a short correction could not sustain its bearish momentum and had to give up its strength. Buyers have jumped in and may support the pair to re-attempt the 100% Fib. level.

Trade suggestion

Buy Stop at 1.02900, Take profit at 1.03300, Stop loss at 1.02700



Natural Gas



Fig: Natural gas H4 Technical Chart

Natural gas prices are ticking downwards under pressures from the short-term 20-period moving average. At the same time, the commodity is being supported by the level at 3.360 which has prevented the price from falling lower. However, with RSI index sliding in the bearish zone and a divergence between the +DI and –DI lines, natural gas is expected to test the support at 3.260.

Trade suggestion

Sell Stop at 3.340, Take profit at 3.260, Stop loss at 3.380



SP500



Fig: Sp500 H4 Technical Chart

Sp500 index has been moving sideways to higher for nearly a week. The price action is twisting with the short-term MA20. Steady up moves have retained the market in the bullish zone, where may support the index to retest the all-time record high at 2777.35.

Trade suggestion

Buy Stop at 2267.00, Take profit at 2277.00, Stop loss at 2262.00

 

[CSFX.Support]

EUR/AUD signal by Capital Street FX

From GMT 07:00 20/12/2016
Till GMT 21:00 20/12/2016

Sell at 1.43000
Take profit at 1.42600
Stop loss at 1.43200

 

[CSFX.Support]

BlackBerry Trade Idea by Capital Street FX

Surprise Profits and Upgraded Outlook Lift BlackBerry Shares

Shares of BlackBerry Ltd. soared 3.11% in premarket trade on Tuesday after the Canadian software and device company reported its fiscal third-quarter earnings that came in better-than-expected.

BlackBerry narrowed its net loss to $117 million or 22 cents a share in the three-month period to November 30, from $372 million, or 71 cents a share, in the same period a year ago.

Adjusted to exclude items, the software and mobile security company posted a surprise profit for the quarter, earning 2 cents a share. Analysts had forecast a loss of one cent a share while the adjusted loss last year was three cents a share.

BlackBerry now expects to reach an adjusted per-share profit for the full current fiscal year. This is an positive update from the prior outlook that projects a range of breaking even to a loss of five cents a share.

Trade suggestion

Buy Stop at 7.97, Take profit at 8.20, Stop loss at 7.80

 

[CSFX.Support]

NZD/JPY signal by Capital Street FX

NZD/JPY signal by Capital Street FX

From GMT 20:30 20/12/2016
Till GMT 21:00 21/12/2016

Buy at 81.600
Take profit at 82.000
Stop loss at 81.400

 

[CSFX.Support]

Daily Report on December 21, 2016 by Capital Street FX


Daily Report on December 21, 2016



European shares retreated on Wednesday after attempted the highest level since late December last year. The Stoxx Europe 600 index shed 0.1% in the morning session, dragged down by 0.5% decline in a gauge of European bank shares. Losses of banking stocks came in after a slew of banks from Spain, Italy and Switzerland were reported to be struggling with fines, court’s ruling and loan loss provisions.

According to a ruling by the EU Court of Justice in Luxembourg Wednesday, Spanish banks, including Banco Popular Espanol SA and Banco Bilbao Vizcaya Argentaria SA, may have to give back billions of euros to mortgage customers who paid too much interest on home loans pre-dating a May 2013. Meanwhile, Italian banks have been struggled in raising at least 52 billion euros ($54 billion) to clean up their balance sheets. Banca Monte dei Paschi di Siena, which has to add 5 billion euros of provisions, may run out of liquidity in four months, sooner than a previous estimate of 11 months, Reuter reported.

Dollar lost ground versus the euro and the Japanese Yen on Wednesday. Speaking in a conference following the Bank of Japan’s Monetary Policy Statement, Governor Haruhiko Kuroda wiped out the possibility that the central bank may soon consider raising interest rates. Kuroda also pledged to keep policy loose to achieve the BOJ's 2 percent inflation goal and stated that recent depreciation of the Yen would help accelerate inflation by boosting import costs and thus raise inflation expectations.

Crude prices were little changed even after data showed U.S. stockpiles declined last week. The American Petroleum Institute on late Tuesday reported that crude inventories in the U.S. dropped by 4.15 million barrels in the week to December 16th. Official data from the Energy Information Administration due to release later today is also anticipated to show a supply retreat.



Technicals

USDJPY



Fig: USDJPY H4 Technical Chart

USDJPY price action is on track to form a double-top pattern after the pair rebounded from the resistance at 118.300. The price has crossed over the short-term MA20 and is heading towards the neck level at 116.700 where the pair is expected to face the long-term MA50 and bounce back.

Trade suggestion

Sell Stop at 117.400, Take profit at 116.700, Stop loss at 117.700



EURAUD



Fig: EURAUD H4 Technical Chart

Euro pulled back versus the Australian dollar following a slide that sent the pair to as low as 1.42819 – the level not seen since December 16th. The bullish momentum was spurred by the dynamic support which is the short-term MA20. As can be seen from the stochastic chart, the %K line is running ahead of the %D line, suggesting further up moves.

Trade suggestion

Buy Stop at 1.43500, Take profit at 1.44000, Stop loss at 1.43250



GOLD


Fig: GOLD H4 Technical Chart

Gold one more time ran out of bullish steam after the price action failed to break out of the 20-period moving average. The dynamic resistance has depressed gold price for a period of time and may send the precious metal lower to test the support at 1126.00.

Trade suggestion

Sell Stop at 1132.00, Take profit at 1126.00, Stop loss at 1137.00



Natural Gas



Fig: Natural Gas H4 Technical Chart

After hitting a three-week low at 3.260, natural gas price pulled back to attempt the resistance at 3.360. ADX is heading downwards, indicating no clear trend in the market. The upside also seems limited as the short-term MA20 is hanging above the price action, suppressing the bullish force.

Trade suggestion

Sell Limit at 3.360, Take profit at 2.260, Stop loss at 3.410

 

[CSFX.Support]

EUR/NZD signal by Capital Street FX

From GMT 09:00 21/12/2016
Till GMT 21:00 21/12/2016

Buy at 1.50600
Take profit at 1.51100
Stop loss at 1.50350

 

[CSFX.Support]

Natural Gas Trade Idea By Capital Street FX

Expectation of A Massive U.S. Supply Draw Spurs Natural Gas Demand

U.S. natural gas futures soared strongly on Wednesday after having fallen to the lowest level in nearly a month yesterday. Natural gas for January delivery on the New York Mercantile Exchange surged more than 6% to around $3.500 per million British thermal units as investors are betting on expectations of a massive U.S. inventory draw.

Natural gas futures closed last week lower due to forecasts for less cold weather which tends to result in lighter heating demand through the end of the year. However, economists expect weekly supply data due on Thursday will show a draw in a range between 197 and 210 billion cubic feet in the week ended December 16. If confirmed, it would be the biggest weekly withdrawal since 2010 and far exceeding last week’s decline of 147 billion cubic feet.

Trade suggestion

Buy Stop at 3.500, Take profit at 3.580, Stop loss at 3.460

 

[CSFX.Support]

Copper Trade Idea by Capital Street FX

Drop in Chinese Imports and LME Stock Increase Keep Copper Weak

Copper prices plunged to the lowest level in more than a month on Thursday, weighed down by trade data that showed Chinese metal imports dropped sharply in November and news that indicated a surge in stocks on the London Metal Exchange.

According to Chinese customs data showed on Wednesday, the country’s refined copper imports were recorded at 276,730 tons last month. November’s reading was down 22.86% in comparison with the same month a year earlier and marked the lowest since January.

Coupled with a declining demand from the world’s top copper importer, a 62% increase of copper inflows into the LME also dragged the metal’s prices down.

Trade suggestion

Sell Stop at 2.4700, Take profit at 2.4500, Stop loss at 2.4800

 

[CSFX.Support]

EUR/CAD signal by Capital Street FX

From GMT 06:30 22/12/2016
Till GMT 21:00 22/12/2016

Buy at 1.40200
Take profit at 1.40900
Stop loss at 1.39900

 

[CSFX.Support]

Daily Report on December 22, 2016 by Capital Street FX

Daily Report on December 22, 2016



Global shares stagnated with dwindling volumes on Thursday as investors started to book profit ahead of the Christmas holidays. U.S. stocks also experienced a slide on Wednesday and headed for opening lower. After the Dow Jones Industrial Average failed to reach the 20,000 threshold yesterday, European equities declined, led by bank and miner shares.

The Stoxx Europe 600 index dropped more than 0.2% with banking stocks throughout the region came under pressure. Stoxx Europe 600 Bank Index lost 0.24%, as sentiment was sapped by Italia’s Banca Monte dei Paschi di Siena which seems to fail to raise 5 billion euros ($5.22 billion) by the end of the year. According to market sources, the bank said late Wednesday that it had failed to secure an anchor investor for its private rescue deal.

U.S. crude price inched lower in European session after rebounding higher in Asian trading hours. The West Texas Intermediate crude oil resumed its downtrend, weighed down by concerns over rising output in the U.S. and Libya. As reported by the Energy Information Administration on Wednesday, U.S. crude stocks rose by 2.3 million barrels in the week ended Dec. 16, contrasting with market expectations calling for a decrease. In addition, Libya’s state-run National Oil Co. stated that its long-closed pipelines, which could supply 270,000 barrels a day of crude in the next three months, had reopened.

Elsewhere, New Zealand’s gross domestic product was reported to grow at a faster pace in the third quarter. The Statistics New Zealand said that the country’s GDP expanded 1.1% in three months to September, extending quarterly growth to the 24th consecutive quarter. On a yearly basis, GDP grew 3.5%, following a 3.4% annualized gain in the previous quarter.



Technicals

CADJPY



Fig: CADJPY H4 Technical Chart

CADJPY has been on a steady decline that brought the pair below the 87.500 level. The 20-period MA crossed the 50-period MA for the first time in nearly two months, suggesting a reversal into a downtrend. Not only has the pair been under downward pressure from two MAs hanging above the price action, it is likely to slide further as indicated by RSI and ADX indicator charts.

Trade suggestion

Sell Stop at 87.300, Take profit at 86.900, Stop loss at 87.500



USDZAR



Fig: USDZAR H4 Technical Chart

USDZAR has witnessed a sharp up move after the U.S. dollar eventually broke out of the resistance at 14.00000 milestone. As can be observed in the chart, while the price action has penetrated the short-term MA20 from below, the RSI index has moved past the central line, suggesting further advances.

Trade suggestion

Buy Stop at 14.05000, Take profit at 14.15000, Stop loss at 14.00000



BRENT



Fig: BRENT H4 Technical Chart

Brent crude collapsed following a consolidation above the 54.40 support. The commodity price finally broke below this handle and is heading downwards to another firm support at 53.00. Along with the RSI index that is declining, the downtrend is also confirmed by the convergence of two moving averages.

Trade suggestion

Sell Stop at 54.10, Take profit at 53.00, Stop loss at 54.60



SILVER



Fig: SILVER H4 Technical Chart

Silver extended its slide to the second-straight trading day after surging as high as 16.161. The grey metal fell below the short-term MA20 though and is struggling around the 15.800 support. As the RSI is pointing downwards and ADX is soaring, a strong bearish momentum is anticipated to help the metal break above the 15.800 level.

Trade suggestion

Sell Stop at 15.800, Take profit at 15.600, Stop loss at 15.900

 

[CSFX.Support]

SP500 Trade Idea by Capital Street FX

Mixed U.S. Data Fails To Boost Shares As Holiday Is Coming

U.S. shares fell in light trading on Thursday as investors started to book their profit ahead of the Christmas holiday weekend. A slew of data in the U.S. which were mixed also sapped traders’ confidence in investing in risky assets.

U.S. economy was reported by the Commerce Department to grow at its fastest pace in two years last quarter. According to the report released earlier today, gross domestic product advanced at a 3.5 percent annual rate, which is faster than the previously reported 3.2 percent pace.

However, traders quickly shrugged off the upbeat GDP data as consumer spending, which accounts for more than two-thirds of U.S. economic activity, rose less than expected. For November, personal spending only grew 0.2 percent, below the estimated 0.3 percent gain. That contributed to holding back inflation last month. The core personal consumption expenditures (PCE) price index, excluding food and energy, was unchanged in November, falling short of expectation for a gain of 0.1%.

Out of 11 sectors of the SP500 index, only Energy, Telecommunication Services and Utilities were trading higher. Consumer Discretionary led losses, shedding 1.14%.

Trade suggestion

Sell Stop at 2256.00, Take profit at 2250.00, Stop loss at 2260.00

 

[CSFX.Support]

Daily Report on December 23, 2016 by Capital Street FX

Daily Report on December 23, 2016



Asian equities sagged on the last trading session before Christmas holiday weekend with markets in Tokyo closed for a holiday. The MSCI Asia-Pacific Index excluding Japan plunged by 0.5%, extending its loss to an eighth session, its longest series of losses since May. Both China’s currency and stock markets were in a negative territory as investors were concerned by rising borrowing costs in the world’s two biggest economies.

China’s CSI 300 Index lost 0.6 percent while Hong Kong’s Hang Seng Index dropped 0.5 percent. Australia’s S&P/ASX 200 Index was down 0.3 percent and Singapore’s Straits Times Index shed 0.4 percent. Many key Asian markets will be closed Monday to observe Christmas holiday. Markets in Japan, China and Korea will reopen on Tuesday while a few will also stay closed.

The dollar index plummeted by nearly 1 percent to 102.99, after a string of U.S. data failed to move the market. U.S. economy was reported by the Commerce Department to grow at its fastest pace in two years last quarter. According to the report released Thursday, GDP advanced at a 3.5 percent annual rate, which is faster than the previously reported 3.2 percent pace.

However, consumer spending, which accounts for more than two-thirds of U.S. economic activity, rose less than expected. For November, personal spending only grew 0.2 percent, below the estimated 0.3 percent gain. The core personal consumption expenditures (PCE) price index, excluding food and energy, was unchanged in November, falling short of expectation for a gain of 0.1%.

Elsewhere, China’s government may relax regulations for foreign elderly care firms to encourage overseas investors to establish non-profit pension funds in the country. In a statement by the State Council on Friday, approval processes for these funds will be loosened in an attempt to deal with the looming challenges of a rapidly aging population.



Technicals

EURCHF



Fig: EURCHF H4 Technical Chart

EURCHF has broken above a firm resistance at 1.07200 – an old support in the one-month period to mid-December. The price action has also crossed over the 20-period moving average from below, which suggests a strengthening bullish momentum. RSI has move past 50, confirming the uptrend.

Trade suggestion

Buy Stop at 1.07300, Take profit at 1.07550, Stop loss at 1.07200



AUDJPY


Fig: AUDJPY H4 Technical Chart

AUDJPY continued to slide further towards the 38.2% Fibonacci level after falling off the 84.700 support. The pair has moving in a thin range around this handle for a while but strong bearish force has helped the price to break lower. However, the downside seems limited not only because one of major Fib. level is within the sight but also because of the fact that the market has neared the oversold zone, as indicated by the RSI chart.

Trade suggestion

Sell Stop at 84.500, Take profit at 84.050, Stop loss at 84.700



Natural Gas



Fig: Natural Gas H4 Technical Chart

Natural gas ticked higher after plummeting to as low as 3.494. The commodity price is attempting the resistance at 3.580 – the level it failed to break above yesterday. The short-term MA20 has converged with the long-term MA50 from below, supporting the up move. Both RSI and ADX indexes are indicating further advances.

Trade suggestion

Buy Stop at 3.590, Take profit at 3.650, Stop loss at 3.560



EURO 50



Fig: EURO 50 Index H4 Technical Chart

Euro 50 index has fallen in a consolidation that causes the price to swing back and forth in a thin rang around 3275.00. However, buyers are supported by the short-term MA20 which may spur buying demand to help the benchmark reach the 3300.00 threshold.

Trade suggestion

Buy Stop at 3280.00, Take profit at 3300.00, Stop loss at 3270.00

 

[CSFX.Support]

Deutsche Bank Trade Idea by Capital Street FX

Deutsche Bank Reaches A Relieved $7.2B Settlement In Mortgate Probe

Shares of Deutsche Bank rose 3.02% in pre-market trading on Friday after the bank’s Frankfurt headquarters early Friday announced a $7.2 billion settlement with the U.S. Department of Justice over its allegations of the mis-selling of mortgage-backed securities (MBS) in the run-up to the 2008 financial crisis.

Germany’s largest lender will have to pay a civil monetary penalty of $3.1 billion provide $4.1 billion in consumer relief as part of the agreement. The announcement of the fine has offered some relief to investors betting in the German lender, as the Justice Department in late September had claimed $14.0 billion for the settlement, which is nearly twice as much as the Friday’s deal.

According to the bank’s press release, it expects a pretax charge of about $1.17 billion in its fourth quarter stemming from the civil monetary penalty.

Trade suggestion

Buy Stop at 18.95, Take profit at 19.50, Stop loss at 18.70

 

[CSFX.Support]

GBP/JPY signal by Capital Street FX

From GMT 06:20 23/12/2016
Till GMT 21:00 23/12/2016

Sell at 144.100
Take profit at 143,300
Stop loss at 144.500