Daily Market Analysis by CapitalStreetFX

Natural Gas Trade Idea By Capital Street FX

Warmer Weather Forecasts Send Natural Gas to Severe Loss

U.S. natural gas futures plummeted steeply on Tuesday, witnessing the biggest single-session percentage loss in nearly two year. The price continued to trade lower on Wednesday, weighed down by forecasts for warmer weather through the first two weeks of January

Natural gas for February delivery lost nearly 0.7% to $3.299 a million British thermal units on the New York Mercantile Exchange. The commodity dropped 11.25% in the first trading session of 2017.

Latest weather forecasts indicated the arctic blast may be briefer than many anticipated, with milder temperatures taking hold in mid-January. Mild weather will bring an end to a string of mammoth withdrawals of natural gas from storage which started last December.

Trade suggestion

Sell Stop at 3.290, Take profit at 3.190, Stop loss at 3.340
 
NZD/JPY signal by Capital Street FX

From GMT 06:45 04/01/2016
Till GMT 21:00 04/01/2016

Buy at 81.70000
Take profit at 81.76000
Stop loss at 81.69700
 
SP500 Trade Idea by Capital Street FX

Consumer Discretionary Fuels SP500 Higher, Fed’s Minutes Awaited

U.S. stocks rose ahead of the release of the Federal Reserve’s December meeting minutes on Wednesday. The benchmark S&P500 added 0.55% to 2270.35 with gains led by consumer discretionary stocks.

Investors are waiting for the Fed’s minutes for its latest meeting when it decided to raise rate for just the second time in a decade. As the central bank is expected to accelerate its rate-hike speed in 2017, markets will be scrutinizing the bank’s viewpoint about President-elect Donald Trump’s pledge of fiscal stimulus.

The S&P 500 witnessed 9 out of 11 sectors trading higher, with consumer discretionary topping the market. While stocks of consumer discretionary contributed to a rise of 1.62%, telecommunications and energy were riding a decline.

Trade suggestion

Buy Stop at 2270.00, Take profit at 2277.00, Stop loss at 2265.00
 
Daily Report on January 04, 2017 by Capital Street FX


Daily Report on January 04, 2017



Asian stocks extended gains on Wednesday with Japanese equities ticking higher on the first trading day of 2017. Japan’s Topix index gained more than 2.4%, reaching the highest in more than a year while Nikkei 225 Stock Average also took off, rising 2.51% to settle at 19,594.16. Both two benchmarks recorded the best first day of trading since 2013.

Meanwhile, the Stoxx Europe 600 Index shed 0.2% to 365.04 as 11:20 GMT on Wednesday after closing at the highest level since Dec. 2015 on Tuesday. Banking shares were trading in a positive territory but failed to offset losses caused by retailers. Shares of Next PLC led declines, tumbling more than 11% after the U.K. fashion retailer cut its annual profit forecast and warned on a difficult year ahead.

On the data front, the European Union's statistics agency on Wednesday said its consumer prices rose at the fastest annual rate in more than three years last month. The pickup in the overall measure of the Eurozone’s inflation stemmed from a rise in energy charges, which sent the index to 1.1% higher in December from 0.6% in November. However, the core rate – which excludes prices of items such as energy and food – advanced only 0.9%, triggering caution for the European Central Bank that the sharp rise in inflation may be unstable.

Crude prices recovered from a big loss a day prior on expectations U.S. crude oil stockpiles will contract last week. The contract for Brent crude futures hit a fresh 18-month high in the previous session but could not sustain the bullish momentum and fell on the back of a strong dollar. The benchmark settled at $55.47 per barrel. U.S. West Texas Intermediate (WTI) crude futures were trading at $52.53 per barrel, not far from the last settlement. According to analysts polled by Reuters, weekly U.S. statistics on oil stocks due on Thursday are expected to show a 1.7 million barrel draw.



Technicals

AUDCAD

AUDCAD



Fig: AUDCAD H4 Technical Chart

AUDCAD failed to break above the 61.8% Fibonacci retracement at 0.97330 to reverse lower. The price action not only crossed over both the long-term and short-term moving averages but also breached the support at 0.96900. The pair is heading for a six-month low at 0.96000.

Trade suggestion

Buy Digital Put Option from 0.96600 to 0.96000 valid until 20:00 GMT January 04, 2017



NZDJPY



Fig: NZDJPY H1 Technical Chart

NZDJPY pulled back from the 50.0% Fibonacci support at 81.550 where it also faced the long-term MA50. Spurred by bullish sentiment from both the fixed and dynamic supports, the pair ticked higher, attempting to retest the resistance at 82.000. RSI has rebounded from the 50-line, confirming further advances.

Trade suggestion

Buy Digital Call Option from 81.600 to 82.000 valid until 20:00 GMT January 04, 2017



SILVER



Fig: SILVER H1 Technical Chart

Silver has been moving indecisively below the firm resistance at 16.450 level. As can be observed from recent candles, most of them have extremely thin bodies and long shadows, suggesting that the metal is struggling to find direction. However, silver has also been supported by the MAs and parabolic sar, which may send the price to the 61.8% Fib. level.

Trade suggestion

Buy Digital Call Option from 16.450 to 16.550 valid until 20:00 GMT January 04, 2017



COFFEE



Fig: Coffee H4 Technical Chart

Coffee has been riding a bull run since it rebounded from the 61.8% Fibonacci retracement at 135.65. The up moves has not only sent the price action above the long-term 50-period moving average but also brought the market into the bullish zone, as indicated by the RSI chart. The 50.0% level is within the sight.

Trade suggestion

Buy Digital Call Option from 141.00 to 144.00 valid until 20:00 GMT January 04, 2017
 
Daily Report on January 05, 2017 by Capital Street FX

Daily Report on January 05, 2017



Asian shares advanced for an eighth consecutive day on Thursday, mirroring gains on Wall Street overnight. The MSCI Asia Pacific Index rose 0.8 percent to a three-week high with Australia and Hong Kong leading gains. The Hang Seng added 1.2%, looking set for the highest level since Dec. 14. While Australia’s S&P/ASX 200 Index gained 0.4 percent. On the contrary, Japan's Nikkei shed 0.3 percent as the yen edged up on the dollar.

The greenback fell after the minutes of the Dec. 13-14 meeting of the Federal Open Market Committee had been released in Washington on Wednesday. According to the minutes, almost all officials indicated that the prospects for fiscal stimulus under President-elect Trump’s administration could boost economic growth in the coming years. However, it still remained unchanged about “how such changes might alter the economic outlook”, the minutes said.

At the meeting, members highlighted the potential of higher inflation thanks to stronger economic growth and further increases in oil prices, which may require a more aggressive rate-hike path. Nonetheless, some officials stated that a stronger dollar could continue to offset rise in inflation. Most on the committee reiterated that a “gradual” pace of rate hikes over the coming years would likely remain appropriate.

Crude prices saw a rebound overnight following weekly data by American Petroleum Institute (API) that showed U.S. crude inventories fell 7.4 million barrels to 482.7 million in the week ended Dec. 30. The reading was far above analyst expectations for a decrease of 2.2 million barrels.

Elsewhere, China’s services sector was reported to accelerated to a 17-month high last month. The nation’s Markit/Caixin services purchasing managers' index (PMI) ticked higher to 53.4 in December on a seasonally adjusted basis from 53.1 in November, adding evidences to views that China is starting the new year with stronger momentum.



Technicals

EURCHF



Fig: EURCHF H4 Technical Chart

EURCHF extended its bull run after pulling back from the support at 1.06800. The price action has penetrated both the long-term and short-term MAs from below and is heading upwards to a strong resistance at 23.6% Fibonacci level. Coupled with the RSI index that is edging higher, parabolic sar which moving below the price action also supports further advances.

Trade suggestion

Buy Stop at 1.07350, Take profit at 1.07550, Stop loss at 1.07250



GBPJPY



Fig: GBPJPY H4 Technical Chart

GBPJPY has fallen sharply to test the support at 142.500 and is expected to break below this level. The last time the pair failed to breach this handle is on December 29th when the market was on the verge of falling into the oversold zone. This time, there is room for further declines with RSI at 34.34. -DI line is soaring higher, signaling a strong bearish momentum.

Trade suggestion

Sell Stop at 142.500, Take profit at 141.000, Stop loss at 143.500



SILVER



Fig: SILVER H4 Technical Chart

Silver has been on an uptrend for three-straight trading days. Steady up moves have brought the price above the 61.8% Fibonacci level and sent the silver market into the overbought zone. As can be seen from the chart, the grey metal has fallen into a correction but chances for the rally to resume stay strong.

Trade suggestion

Buy Stop at 16.650, Take profit at 16.850, Stop loss at 16.550.



DAX 30 Index



Fig: DAX 30 H1 Technical Chart

DAX 30 index rebounded from a firm support at 11540.00 which also prevented the price from falling further yesterday. The price action has move past the moving averages and is heading towards the resistance at 11650.00. RSI has crossed over the central line, confirming the uptrend.

Trade suggestion

Buy Stop at 11600.00, Take profit at 11650.00, Stop loss at 11570.00
 
EUR/USD signal by Capital Street FX

From GMT 06:00 05/01/2017
Till GMT 21:00 05/01/2017

Buy at 1.05500
Take profit at 1.05900
Stop loss at 1.05300
 
Selling USD – Not Enough To Defend Weak Peso Weighed By Trump

Selling USD – Not Enough To Defend Weak Peso Weighed By Trump

Mexican peso rebounded after posting a record low at 21.624 per dollar on Wednesday as Mexico’s central bank sold dollars in Mexico and New York on Thursday to prop up the currency.

According to market sources, the central bank sold at least $1 billion in U.S. currency in morning trade in an attempt to fight off the peso’s steep down rally to record lows amid fears U.S. President-elect Donald Trump’s protectionist policies could further hurt Latin America’s second-biggest economy. The bank kept the amount confidential.

Last year, the peso was among the world’s worst performing currencies after having dropped around 20% in the wake of Trump’s presidential victory. The Mexico’s central bank had to intervene in the forex market by selling $2 billion to rescue the sinking peso. Nonetheless, the intervention was short-lived and the currency continued to trend lower.

The central bank sold at least $1 billion in U.S. currency in morning trade. The bank kept the amount confidential. The dollar sales mark the bank’s first currency intervention since February 2016, when it sold $2 billion to prop up the sinking peso. The peso depreciated 20 percent last year alone and was among the world’s worst performing currencies.

This time, the peso decline is expected to extend as Trump is putting pressure on U.S. companies to not build factory in Mexico. In a tweet on Thursday, the Trump threatened Toyota Motor Corp with a “big border tax” if it builds a new factory in Mexico to manufacture cars for the U.S. market.

Trade suggestion

Buy Limit at 21.25000, Take profit at 21.60000, Stop loss at 21.00000
 
EUR/AUD signal by Capital Street FX

From GMT 06:00 06/01/2017
Till GMT 21:00 06/01/2017

Buy at 1.40350
Take profit at 1.41000
Stop loss at 1.40000
 
Dow Jones Trade Idea by Capital Street FX

Upbeat NFP Pushes Dow Jones To 20,000 Threshold

U.S. shares turned higher on Friday following a December U.S. jobs report that was interpreted as generally positive. The benchmark Dow Jones Industrial Average inched closer to the psychologically important 20,000 level.

According to monthly data from the U.S. Bureau of Labor Statistics, the economy added 156,000 jobs last month. Although the heading figure was much below the consensus of 180,000 jobs forecast by the economists, the reading for November was revised sharply upwards. In addition, worker pay rose at the fastest pace since the Great Recession at the rate of 0.4% in December.

Annual gain in 2016 jumped to 2.9% – the fastest increase since a recovery that began in mid-2009. Meanwhile, the unemployment rate climbed to 4.7% from 4.6% as more people entered the labor force in search of work.

Trade suggestion

Buy Stop at 20,000, Take profit at 20,100, Stop loss at 19,050
 
USDMXN Trade Idea by Capital Street FX

Selling USD – Not Enough To Defend Weak Peso Weighed By Trump

Mexican peso rebounded after posting a record low at 21.624 per dollar on Wednesday as Mexico’s central bank sold dollars in Mexico and New York on Thursday to prop up the currency.

According to market sources, the central bank sold at least $1 billion in U.S. currency in morning trade in an attempt to fight off the peso’s steep down rally to record lows amid fears U.S. President-elect Donald Trump’s protectionist policies could further hurt Latin America’s second-biggest economy. The bank kept the amount confidential.

Last year, the peso was among the world’s worst performing currencies after having dropped around 20% in the wake of Trump’s presidential victory. The Mexico’s central bank had to intervene in the forex market by selling $2 billion to rescue the sinking peso. Nonetheless, the intervention was short-lived and the currency continued to trend lower.

The central bank sold at least $1 billion in U.S. currency in morning trade. The bank kept the amount confidential. The dollar sales mark the bank’s first currency intervention since February 2016, when it sold $2 billion to prop up the sinking peso. The peso depreciated 20 percent last year alone and was among the world’s worst performing currencies.

This time, the peso decline is expected to extend as Trump is putting pressure on U.S. companies to not build factory in Mexico. In a tweet on Thursday, the Trump threatened Toyota Motor Corp with a “big border tax” if it builds a new factory in Mexico to manufacture cars for the U.S. market.

Trade suggestion

Buy Limit at 21.25000, Take profit at 21.60000, Stop loss at 21.00000
 
Daily Report on January 09, 2017 by Capital Street FX

Daily Report on January 09, 2017



European stocks were mixed on Monday with U.K. shares advancing higher while German and broader European equities falling. Meanwhile, U.S. equity futures pointed to a positive territory as gains in most Asian markets helped fuel the bullish sentiment. Markets in Japan were closed for a holiday.

The Stoxx Europe 600 lost 0.41% to 363.85, with Lufthansa’s stock LHA topping the list of fallers. The German airline’s shares dropped more than 5% after it stated late Friday that fuel costs will rise this year. The company failed to provide an earnings forecast for 2017. Germany’s DAX 30 DAX shed 0.36% to 11556.14 and France’s CAC 40 slipped 0.56% to 4882.46.

Only the U.K.’s FTSE 100 was on a rise. The equity benchmark rose 0.22% to 7,227.25 as the pound fell following comments from Prime Minister Theresa May that signaled a “hard Brexit.” Sterling extended its decline from Friday. Britain’s Prime Minister Theresa May in an interview with Sky News on Sunday said that negotiations on Brexit will be about “getting the right relationship, not about keeping bits of membership.

The dollar strengthened as demand for the greenback was spurred by the latest non-farm payrolls which stoked optimism over the world’s largest economy’s growth and inflation moving towards the central bank’s 2% target. Data released last Friday showed the U.S. added 156,000 jobs in December and revised November’s reading sharply higher. More people attended the labour market and wage rose at a considerable rate, said the report.

Elsewhere, the offshore yuan witnessed its biggest two-day drop since June. The exchange rate fell another 0.6 percent on Monday, extending a 0.9 percent drop on Friday that was the biggest in a year. According to the People’s Bank of China, China’s foreign currency holdings fell for a sixth month in December. Due to the PBOC’s efforts to prop up the local currency, Chinese reserves plunged by $41.1 billion to a fresh five-year low of $3.01 trillion last month, sending last year’s drop to $320 billion.



Technicals

USDZAR



Fig: USDZAR H4 Technical Chart

USDZAR was on track to complete a double-bottom pattern after it rebounded from the 38.2% Fibonacci level. This is a strong support as it has prevented the pair from falling lower since mid-December, 2016. The price action has not only been able to cross over both short-term and long-term MAs but also did breach the resistance formed by connecting lower highs. The pair is expected to retest the resistance at 13.83700.

Trade suggestion

Buy Stop at 13.77500, Take profit at 13.83700, Stop loss at 13.75000



EURCAD



Fig: EURCAD H4 Technical Chart

EURCAD has been moving sideways following a steep drop last Friday. The pair has been under downward pressure exerted by the short-term 20-period moving average. Sellers still dominated in the market, as suggested by the RSI indicator index that is under 50.

Trade suggestion

Sell Stop at 1.39300, Take profit at 1.38800, Stop loss at 1.3500



GOLD



Fig: GOLD H4 Technical Chart

Gold remained above the 61.8% Fibonacci retracement with the support from the short-term MA20. As can be observed from the RSI and stochastic charts, both indicators are pointing to overwhelming bullish force in the market. Gold may retest the resistance at 1185.00.

Trade suggestion

Buy Stop at 1178.00, Take profit at 1185.00, Stop loss at 1175.00



CAC40 Index



Fig: CAC40 Index H1 Technical Chart

CAC 40 index plunged steeply from one-week high at 4924.90. The downward rally sent the price back to a support at around 4875.00 and brought the market into the bearish territory, as indicated by the RSI chart. In the event of continual decline, the index may retest the support at 4855.00.

Trade suggestion

Sell Stop at 4875.00, Take profit at 4855.00, Stop loss at 4885.00.
 
GBPUSD Trade Idea by Capital Street FX

GBPUSD Sells Off As May Prioritizes Greater U.K. Sovereignty

British Pound lost more than 0.7% on Monday after a gap down following remarks by U.K. Prime Minister Theresa May that showed her priorities on regaining control of immigration and lawmaking rather than remaining in Europe’s single market.

In the first televised interview of the year 2017, May stated that leaving the European Union will be about “getting the right relationship, not about keeping bits of membership” and that “We are not going to be a member of the EU any longer, so the question is what is the right relationship for the U.K. to have with the European Union when we are outside,”

While her counterparts in the EU have warned PM May that membership of the tariff-free single market requires maintaining free movement of goods, services, capital and labor, her comments on Sunday seemed to focus on greater sovereignty for the U.K. Investors are still cautiously waiting for the Supreme Court to make its decision on what part parliament will play in Brexit negotiations.

Trade suggestion

Sell Stop at 1.21900, Take profit at 1.21500, Stop loss at 1.22100
 
GBP/CHF signal by Capital Street FX

From GMT 09:50 09/01/2017
Till GMT 21:00 09/01/2017

Sell at 1.23800
Take profit at 1.23400
Stop loss at 1.24000
 
Daily Report on January 10, 2017 by Capital Street FX

Daily Report on January 10, 2017



Asian shares were mixed on Tuesday. The MSCI Asia Pacific Index rose 0.4%, led by gains in Hong Kong’s Hang Seng Index which added 0.5 percent. Equities in New Zealand and Singapore rose while stock benchmarks such as Australia’s S&P/ASX 200 Index, Korea’s Kospi index and Shanghai Composite Index were in red. Japan’s Topix also dropped on the back of a strengthening yen. The stock index lost 0.6%, after paring an earlier loss during the Asian morning trading session.

Crude price were struggling for direction ahead of European trading hours after losing nearly 4% on Monday. Expectations over output cuts planned by some members of the Organization of the Petroleum Exporting Countries (OPEC) and other producers such as Russia eased worries about rising oil rigs in the U.S., which was reported to have advanced for 10 weeks in a row.

According to the National Statistics Bureau on Tuesday, China's producer prices rose much better than expected last month. Led by prices of coal and other raw materials, the country’s prices of coal and other raw materials surged 5.5% in December from a year earlier. The headline reading reached a 3.3 percent increase, soaring past both expectations of a 4.5% gain and November’s result of a 3.3% increase.

Meanwhile, consumer prices remained subdued. Consumer inflation rose only 2.1 percent on a yearly basis, weighed down by food prices that rose at a more modest pace. The government research institute, the China Academy of Social Sciences (CASS), forecast a growth of 2.2 percent in CPI and an increase of 1.6 percent in PPI in 2017. This is good news for the country as for 2016, CPI rose 2.0 percent while PPI slid 1.4 percent.

In Australia, retail sales rose 0.2% in November compared to the previous month, as stated by the Australian Bureau of Statistics. The figure rose much less than economist’s expectation calling for a 0.4% rise.



Technicals

NZDJPY



Fig: NZDJPY H4 Technical Chart

NZDJPY has been on a decline with the price action crossing over a couple of moving averages from above. RSI has fallen below the 50 line, signaling strengthening sellers in the market. The pair may test the support at 80.800.

Trade suggestion

Sell Stop at 81.100, Take profit at 80.800, Stop loss at 81.200



USDMXN



Fig: USDMXN H4 Technical Chart

USDMXN extended its up moves after pulling back from as low as 21.21100. The pair has been supported by the short-term 20-period MA20 and is likely to attempt the all-time record high at 21.60000. While RSI is surging to the overbought zone, ADX index is edging higher with wide gap between the +DI and –DI lines.

Trade suggestion

Buy Stop at 21.50000, Take profit at 21.60000, Stop loss at 21.45000



AUDJPY



Fig: AUDJPY H4 Technical Chart

AUDJPT rebounded from the slopping uptrend line which has been formed by higher lows. Long lower shadows in recent candles also indicate strong bullish force that helped prevent the price from falling lower. RSI pulled back from the central line, indicating overwhelmingly dominating buyers.

Trade suggestion

Buy Stop at 85.400, Take profit at 85.900, Stop loss at 85.200



COFFEE



Fig: Coffee H4 Technical Chart

Coffee price once again moved past the 50.0% Fibonacci retracement. The commodity reversed higher after a correction. The short-term MA20 has penetrated the long-term MA50 from below, suggesting further advance. As can be seen from the stochastic chart, the %K line has crossed over the %D line, confirming the uptrend.

Trade suggestion

Buy Stop at 145.00, Take profit at 147.50, Stop loss at 144.00
 
GBP/AUD signal by Capital Street FX

From GMT 07:00 10/01/2017
Till GMT 21:00 10/01/2017

Sell at 1.64800
Take profit at 1,64000
Stop loss at 1.65200
 
Chipotle Trade Idea by Capital Street FX

Improved Same-store Sales And Share Buyback Program Rescue Chipotle Shares

Shares of Chipotle Mexican Grill Inc swung back into positive territory after losing nearly 4% in premarket trading hours. The sharp decline came after the burrito chain had stated that comparable sales would fall during the fourth quarter.

However, the result came in higher than previously anticipated. The company witnessed progressive improvement after each month of the last quarter. Indeed, Chipotle’s same-store sales slid just 1.4 percent in November, and increased 14.7 percent in December after having plunged as much as 20 percent in October.

The restaurant chain also authorized a new $100 million share repurchase program, which helped push the company’s shares around 4% higher in U.S. session on Tuesday.

Trade suggestion

Buy Stop at 410.60, Take profit at 414.00, Stop loss at 408.00
 
Dow Jones Trade Idea by Capital Street FX

Dow Pares Gains, Trump’s Press Conference Tempers Trading Enthusiasm

U.S. equities turned higher on Tuesday with major benchmarks trading near record levels. The Dow Jones Industrial Average hit an intra-day high at 19.957 before retreating to 19.912, up 0.13% compared to the open price.

Investors are awaiting a news conference from President-elect Donald Trump set for Wednesday and corporate earnings season. American Express Co. and Caterpillar Inc led gainers. The former gained 2.19% while the latter was up 1.97%.

Goldman Sachs Group was the biggest faller of the index as the bank was downgraded to “sell” citing valuation by Citigroup. The downgrade sent Goldman Sachs’s stock down as much as 1.6 percent. Large U.S. banks are due to start reporting fourth-quarter results on Friday. This is their first quarterly earnings reports since the election in November and the Federal Reserve’s rate hike in December.

Trade suggestion

Sell Stop at 19.900, Take profit at 19.840, Stop loss at 19.930
 
Daily Report on January 11, 2017 by Capital Street FX

Daily Report on January 11, 2017



Asian shares surged to two-month highs while European equities opened flat on Wednesday ahead of President-elect Donald Trump's news conference later in the day. Investors will be looking for clues on policies on taxes, fiscal spending, international trade and currencies under the new administration as Trump's election campaign has already called for tax cuts and more infrastructure spending, which helped boosted U.S. shares and the dollar.

MSCI's broadest index of Asia-Pacific shares outside Japan gained 0.5%, led by South Korean shares that hit a 1-1/2-year peak. The gains in Kospi Index in Seoul were thanks to Samsung Electronic - Asia's biggest company by market cap whose shares were spurred by solid earnings published last week. Meanwhile, Japanese benchmarks edged higher, curbing three days of losses.

Australia’s S&P/ASX 200 Index and New Zealand’ S&P/NZX 50 Index rose on the back of strong miners and technology shares. Hong Kong’s Hang Seng Composite Index looked set for a 10th day of gains and the longest winning run since 2012 with a 0.5% rise.

Crude prices recovered from more than one-month lows recorded Tuesday. Oil slumped further after the American Petroleum Institution late Tuesday reported that U.S. crude supplies added 1.5 million barrels for the week ended Jan. 6. The U.S. Energy Information Administration (EIA), which is scheduled to release its latest figures on Wednesday, stated that American crude production would rise by 110,000 barrels per day (bpd) to 9 million bpd in 2017.

The up moves on Wednesday came amidst mounting reports of Saudi supply cuts. Saudi Arabia, the world's top oil exporter, was reported to cut crude supplies slightly from contracted volumes in February, including to India and Malaysia.



Technicals

EURAUD



Fig: EURAUD H4 Technical Chart

EURAUD has breached the major support at 1.43000 after two days of declines. The pair continued to be under downward pressure from the short-term MA20 and is heading towards another support at 1.42200. RSI has nearly reached the oversold territory while ADX is soaring with a wide gap between +DI and –DI lines.

Trade suggestion

Sell Stop at 1.42800, Take profit at 1.42200, Stop loss at 1.43100



AUDUSD



Fig: AUDUSD H4 Technical Chart

After a period of moving sideways, AUDUSD finally broke out of the range and ticked higher. The pair has been supported by the short-term 20-period moving average which may send the pair to the resistance at 0.74250. The level prevented the price from surging higher nearly one month ago.

Trade suggestion

Buy Stop at 0.73850, Take profit at 0.74250, Stop loss at 0.73650



BRENT



Fig: BRENT H4 Technical Chart

As indicated by the RSI indicator chart, Brent crude fell into the oversold market yesterday after a steep decline and is struggling to find the way back. The commodity recovered from as low as 53.57 due to a correction and is expected to retest the resistance at 54.35.

Trade suggestion

Buy Stop at 53.90, Take profit at 54.35, Stop loss at 53.70



CAC40 Index



Fig: CAC40 Index H4 Technical Chart

CAC 40 index has been on a sharp down move which helped bring the price action below both the short-term and long-term moving averages. The index was trapped between two MAs before breaking lower the long-term MA50 which may indicate a reversal into a downtrend. The support at 4825.00 is within the sight.

Trade suggestion

Sell Stop at 4855.00, Take profit at 4825.00, Stop loss at 4870.00
 
Coffee Trade Idea by Capital Street FX

Weak Production and Strong Brazil Real Push Coffee Prices Up

Coffee futures rose on Wednesday, extending gains to the third-straight session and looked set to close higher for the seventh trading day in the last nine day.

The commodity was supported by report from Brazilian coffee exporter Terra Forte that showed arabica production down 13% on a yearly basis to 38.18 million 60-kg bags. The first crop report for 2017-18 also saw robusta production down 5% year on year, to 9.88 million bags.

In addition, the Brazil real strengthened versus the U.S. dollar, which tends to send prices of the agricultural commodity in real terms lower. This prompted Brazilian exporters to sell less to the foreign market. Furthermore, Brazilian farmers are also unwilling to sell their coffee stocks as they earn lower profits due to their expenses being mostly in reals.

Trade suggestion

Buy Stop at 148.50, Take profit at 150.00, Stop loss at 147.50
 
EUR/GBP signal by Capital Street FX

From GMT 06:00 11/01/2017
Till GMT 21:00 11/01/2017

Buy at 0.86800
Take profit at 0.87200
Stop loss at 0.86600
 
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