Daily Market Analysis by CapitalStreetFX

[CSFX.Support]

Daily Report on January 12, 2017 by Capital Street FX

Daily Report on January 12, 2017



The U.S. dollar slipped on Thursday, as President-elect Donald Trump's highly-awaited news conference contained no details on tax cuts and infrastructure spending. Trump, who takes office on Jan. 20, failed to offer details on those two factors that had fuelled the five-week rally in stocks and dollar, and instead took aim at pharmaceutical companies and U.S. intelligence agencies in his first news conference since the Nov. 8 election.

As a result, the dollar index, which tracks the U.S. currency against a basket of six major counterparts, slipped 0.63 percent to 101.08 in early European trading hours. The benchmark had risen to a one-week high on Wednesday, ahead of Trump's news conference. The greenback fell to as low as 114.047 yen, its lowest since Dec. 9, down more than 1% on the day.

Trump did not mention possible tariffs against Chinese exports as well, which is considered a relief for Asian share markets that concerned the outbreak of a global trade war. MSCI's broadest index of Asia-Pacific shares outside Japan jumped 0.6 percent to its highest since late October. Shanghai stocks edged up 0.2 percent while Japan's Nikkei slipped 0.9 percent as the yen climbed on a retreating dollar.

According to NDRC spokesman Zhao Chenxi on Thursday, China approved 227 projects worth 1.704 trillion yuan ($246.55 billion) in 2016. In December only, the country’s National Development and Reform Commission (NDRC) approved 23 fixed-asset projects worth 184.0 billion yuan. China will invest 1.2 trillion yuan ($173.57 billion) between 2016 and 2018 in a three-year action plan to develop information infrastructure.



Technicals

USDJPY



Fig: USDJPY H4 Technical Chart

As can be seen from the price chart, USDJPY has breached the 61.8% Fibonacci retracement at 114.105. As the market has entered the oversold zone, the decline is expected to be short-lived. However, the –DI is soaring strongly, suggesting that the pair can attempt the support at 113.200 – the lowest level since December 08, 2016.

Trade suggestion

Sell Stop at 113.900, Take profit at 113.200, Stop loss at 114.200



NZDUSD


Fig: NZDUSD H4 Technical Chart

NZDUSD retreated from a one-month high at 0.71200 as the sharp rally had sent the market into the overbought one. The pair is expected to fall into a correction before resume its up moves. A surging ADX index with a divergence between the +DI and –DI lines show a strong bullish momentum in the market.

Trade suggestion

Buy Stop at 0.71200, Take profit at 0.71600, Stop loss at 0.71000



WTI



Fig: WTI H4 Technical Chart

U.S. light sweet crude price pulled back after hitting the short-term MA20 at 52.13. The commodity is swinging back and forth around the key level at 52.30. The dynamic resistance – long-term MA50 is within the sight. RSI moving past 50 line indicates further advances.

Trade suggestion

Buy Stop at 52.50, Take profit at 53.00, Stop loss at 52.25



EURO 50 Index



Fig: EURO 50 Index H1 Technical Chart

Euro 50 index opened today’s session with a wide gap down and kept falling lower to retest yesterday’s low at around 3283.40. Two latest bearish candles have no upper shadows, showing strong sellers in the market. RSI index which returned to the bearish zone also confirms further declines.

Trade suggestion

Sell Stop at 3285.00, Take profit at 3270.00, Stop loss at 3390.00

 

[CSFX.Support]

Natural Gas Trade Idea By Capital Street FX

Natural Gas Extends the Rally on Colder Weather and Declining Storage Forecasts

Natural gas futures have been riding on a rally for three days in a row in the wake of forecasts for the weather to turn colder than normal in the last week of January. In addition, analysts expect that U.S. storage of the commodity would decline last week.

Latest weather forecasters at Commodity Weather Group pointed out “signs of colder change increasing for the final week of January”, predicting seasonal to below-normal temperatures for the US Midwest, East and South over the next 16 to 30 days.

Meanwhile, weekly storage data, which is due for release on Thursday, is anticipated to show a draw in a range between 135 and 143 billion cubic feet in the week ended January 6. According to the U.S. Energy Information Administration, total natural gas in storage currently stands at 3.311 trillion cubic feet. That is 9.9% lower than levels at this time a year ago and less than 1% below the five-year average for this time of year.

Trade suggestion

Buy Stop at 3.355, Take profit at 3.440, Stop loss at 3.315

 

[CSFX.Support]

USD/CAD signal by Capital Street FX

USD/CAD signal by Capital Street FX

From 1.31200
Till 1.30800

Option Digital
Direction Put
Expiry GMT 21:00 12/01/2017

 

[CSFX.Support]

EUR/GBP signal by Capital Street FX

From 0.87400
Till 0.88000

Buy Option Digital
Direction Call
Expiry GMT 21:00 13/01/2017

 

[CSFX.Support]

Daily Report on January 13, 2017 by Capital Street FX

Daily Report on January 13, 2017



While Asian stocks slipped after rising to its highest levels since late October in the previous session, European and U.S. stocks looked to finish this week higher on Friday. The Stoxx Euro 600 Index rebounded from its biggest drop since the end of November recorded on Thursday. Market sentiment was supported by remarks of Federal Reserve Chair Janet Yellen reiterating that the U.S. economy is doing well.

Investors were looking to earnings reports from U.S. big banks including JP Morgan Chase, Bank of America Merrill Lynch and Wells Fargo later in the day. Report on U.S. holiday-season retail sales will also be published by the Census Bureau before the U.S. session opens.

Meanwhile, the U.S. dollar was on track for its biggest weekly fall in two months as investors continued to assess whether market moves since the U.S. election have gone too far. The U.S. currency touched the lowest point in almost a month on Thursday. Gold increased on the back of a weak dollar. The precious metal rose for a fifth day, trading near the highest price in almost two months.

The Shanghai Composite Index slipped to its lowest level of the year on Friday following data showed China’s overseas shipments remained subdued. The world's largest trading nation witnessed exports fall 7.7 percent and imports slide 5.5 percent in 2016. Chinese exports dropped for the second year in a row and the most since the depths of the global crisis in 2009.

According to the country's customs agency, it will be tough for foreign trade to improve this year due to potential political changes in the U.S. under Trump’s administration which may result greater protectionist measures. China imported record amounts of crude oil, iron ore, copper and soybeans, especially coal used for heating and in steelmaking in 2016.

Oil futures prices fell on Friday even data showed China imported 8.56 million barrels of crude oil per day (bpd) in December. There are mounting concerns over rising U.S. shale output and increasing supply from OPEC members Nigeria and Libya which might offset any reductions from an output-cut deal signed between OPEC and non-OPEC members.



Technicals

NZDJPY



Fig: NZDJPY H4 Technical Chart

NZDJPY pulled back after failing to breach the 50.0% Fibonacci retracement. The pair extended its rally following a correction as investors took profit from the highest level since January 03rd. Bullish momentum is expected to push the pair as high as 82.000.

Trade suggestion

Buy Stop at 81.700, Take profit at 82.000, Stop loss at 81.550



GOLD


Fig: GOLD H4 Technical Chart

Gold rebounded from short-term MA20 at 1191.95. The dynamic support has helped the precious metal to pull back higher for two weeks. The market remained in the bullish zone which may fuel the price to as high as 23.6% Fibonacci resistance.

Trade suggestion

Buy Stop at 1198.00, Take profit at 1207.00, Stop loss at 1195.00



WTI



Fig: WTI H4 Technical Chart

U.S. crude price has been trapped in a slopping downward trading range. The commodity fell sharply to the support at 52.30 after struggling for direction around the upper boundary formed by lower highs. RSI has moved past the 50 line, suggesting an overwhelming bearish force in the market, but the short-term MA20 is within the sight.

Trade suggestion

Buy Limit at 52.00, Take profit at 52.70, Stop loss at 51.65



DAX 30 Index



Fig: DAX 30 Index H4 Technical Chart

German Dax 30 index is facing the long-term MA50 which has retrained the price’s rally before. In the event of continual up moves, the benchmark is expected to surge as high as 11650.00. RSI index has moved past the central line, confirming the uptrend.

Trade suggestion

Buy Stop at 11600.00, Take profit at 11650.00, Stop loss at 11575.00

 

[CSFX.Support]

USD/CHF signal by Capital Street FX

From GMT 06:30 13/01/2017
Till GMT 21:00 13/01/2017

Sell at 1.00900
Take profit at 1.00500
Stop loss at 1.01100

 

[CSFX.Support]

Daily Report on January 16, 2017 by Capital Street FX

Daily Report on January 16, 2017



European equities were lower in early trade on Monday, dragged down by banking and auto shares. Meanwhile, weakness in the pound helped Britain's FTSE rise to a fresh record high. The Stoxx Europe 600 Index fell 0.6 percent, adding to a 0.3% decrease in the MSCI All-Country World Index.

In Asia, Japanese shares lost ground on the back of a strengthening Yen with Topix index slipping 0.9 percent, while the Nikkei 225 Stock Average erasing its gains for 2017. Shanghai Composite fell 0.3 percent after paring a loss of as much as 2.2% and Hong Kong’s Hang Seng gauge lost 1%, weighed down by China’s Shenzhen Composite Index which tumbled as much as 6.1 percent.

Stocks in China’s second-largest equity market scored the biggest loss since Feb. 29, showing the increasing fragility of the nation’s financial assets. There are mounting concerns that regulators will accelerate the pace of initial public offerings which is already at a 19-year high. This will divert liquidity from existing shares.

Sterling dropped to as low as $1.1986 – an all-time record low level amidst mounting concerns that U.K. Prime Minister Theresa May will emphasize that she priorities curbing immigration and striking commercial deals with other countries over preserving tariff-free trade with the region. Although the U.K. Treasury was reported to plan to calm investors after May’s speech and the Times of London reported Donald Trump would offer a quick trade deal to Britain when he assumes power, the sterling is expected to remain under pressure until May has delivered her speech on Tuesday.

Crude futures edged lower on Monday, driven mainly by a stronger U.S. dollar while investors are nervously awaiting reports on major global producers’ output. U.S. markets are closed on Monday for Martin Luther King Jr. Day; therefore, the release of U.S. oil output and inventory for the week ending Jan. 13 will be delayed one day to Thursday. Before that, market participants will pay attention to the monthly production data released by OPEC on Wednesday.



Technicals

USDJPY



Fig: USDJPY H4 Technical Chart

USDJPY is trading around the 61.8% Fibonacci level at 114.100. The pair is under downward pressure created by two moving averages but at the same time is supported by the 61.8% Fib. handle. The dollar had tried to break below this stance last week and the market fell into a correction. Now bears have come back and may push the pair lower. The support at 113.200 is within the sight.

Trade suggestion

Sell Stop at 114.000, Take profit at 113.200, Stop loss at 114.400



EURAUD



Fig: EURAUD H4 Technical Chart

EURAUD has been weighed down by a couple of moving averages. The currency pair reversed lower from the key resistance at 1.40000 and is heading downwards to the support at 1.38800. RSI index remains under 50 line, indicating an overwhelmingly dominating sellers in the market.

Trade suggestion

Sell Stop at 1.39000, Take profit at 1.38600, Stop loss at 1.39200



BRENT



Fig: BRENT H4 Technical Chart

Brent crude has been locked in a slopping downward trading range but is supported by the level 55.30. The commodity is trading near the upper boundary, and if the pair could not break out of this range, a decline to as low as 54.35 is possible.

Trade suggestion

Sell Stop at 55.30, Take profit at 54.35, Stop loss at 55.80



DAX 30 Index



Fig: DAX 30 Index H1 Technical Chart

Dax 30 index opened the market with a gap down, which brought the price action below both the short-term and long-term moving averages. That suggested the bearish force is dominating in the market and may send the benchmark to the support at 11540.00. If this level is broken, another support at 11500.00 may be tested.

Trade suggestion

Sell Stop at 11540.00, Take profit at 11500.00, Stop loss at 11560.00

 

[CSFX.Support]

GBPUSD Trade Idea by Capital Street FX

May’s Brexit Speech Pushes Pound To Record Low Versus Dollar

The British pound tumbled on Monday versus its American counterpart after a report on the Sunday Times said that U.K. Prime Minister Theresa May might sacrifice the European’s single market for the ability to regain control of Britain’s borders and laws.

Sterling dropped to as low as $1.1986 – an all-time record low level amidst mounting concerns that May on Tuesday will emphasize she priorities curbing immigration and striking commercial deals with other countries over preserving tariff-free trade with the region.

Although the U.K. Treasury was reported to plan to calm investors after May’s speech and the Times of London reported Donald Trump would offer a quick trade deal to Britain when he assumes power, the sterling is expected to remain under pressure until May has delivered her speech on Tuesday.

Trade suggestion

Sell Limit at 1.20500, Take profit at 1.19900, Stop loss at 1.20800

 

[CSFX.Support]

NZD/JPY signal by Capital Street FX

From GMT 07:00 16/01/2017
Till GMT 21:00 16/01/2017

Sell at 80.800
Take profit at 80.450
Stop loss at 81.000

 

[CSFX.Support]

Daily Report on January 17, 2017 by Capital Street FX

Daily Report on January 17, 2017



Global stocks were broadly weaker on Tuesday as investors as investors waited for British Prime Minister Theresa May’s speech later on the day. PM May will lay out plans to exit the European Union amid fears Britain will lose access to the single market. In Asia, Japan's Nikkei .N225 dropped 1.5%, brushing a five-week low while Australia and Shanghai also suffered losses.

European shares opened lower and remained in a negative zone. Stoxx Europe 600 lost 0.46% at 361.43, and Germany's DAX slipped 0.65% to 14,479.38. France's CAC 40 and U.K.'s FTSE 100 shed 0.56% and 0.42%, respectively. U.S. market will reopen after a holiday on Monday. Futures on the S&P 500 Index slid 0.4 percent, weighed by heightened risk aversion stemming from Brexit and uncertainty over Trump's plans.

According to excerpts of a speech released by her office on Monday, Prime Minister Theresa May is set to declare Tuesday that the U.K. wants a clean break from the European Union. This means Britain will not seek a Brexit deal that leaves it “partial membership” in the EU “or anything that leaves us half-in, half-out,”, but a “hard” deal that may witness the U.K. leave the EU's single market. May has been reiterating that one of her priorities in upcoming divorce talks with the bloc is regaining full control of Britain's borders.

Safe-havens such as the yen, gold and Treasuries gained in turn. Gold for February delivery rose 1.47% to as high as $1213.18 an ounce, trading at levels not seen since November 23, 2016. Meanwhile, Japanese Yen extended its gains to a seventh consecutive trading day. The pair USDJPY plunged nearly 1% to trade at 113.0780.



Technicals

NZDUSD



Fig: NZDUSD H4 Technical Chart

Supported by the short-term MA20, the currency pair NZDUSD broke out of an indecisive trading mood to edge higher on Tuesday. The pair has also breached the 23.6% Fibonacci level at 0.71622 and is heading upwards the highest level since mid-December.

Trade suggestion

Buy Stop at 0.71800, Take profit at 0.72300, Stop loss at 0.71500



USDCAD



Fig: USDCAD H4 Technical Chart

USDCAD plunged sharply from as high as 1.31887 to the support at 1.30500. The price action did break through the short-term MA20 but failed to resist the downward pressure from the long-term MA50. The support at 23.6% Fibonacci retracement is within the sight.

Trade suggestion

Sell Stop at 1.30500, Take profit at 1.29900, Stop loss at 1.30800



BRENT



Fig: BRENT H4 Technical Chart

Brent crude has made a break-out from a sloping downward trading range that connects lower lows and lower highs. The commodity took off to more than one-week high at 56.72 before retreating a little bit and struggling around the 56.60 resistance. Observing previous cycles, this is not a so strong handle. In the event of continual uptrend, Brent crude may test the level 57.30.

Trade suggestion

Buy Stop at 56.70, Take profit at 57.30, Stop loss at 56.40



SILVER



Fig: SILVER H4 Technical Chart

Silver remained in a steady up trend with the price moving towards the one-month high level at 17.200. The metal has consistently been fueled by two moving averages that are hanging below the price action. RSI index is soaring but has not yet reached the overbought zone, suggesting rooms for further advance.

Trade suggestion

Buy Stop at 17.050, Take profit at 17.200, Stop loss at 16.900

 

[CSFX.Support]

Morgan Stanley Trade Idea by Capital Street FX

Morgan Stanley Follows In Rivals’ Steps With Upbeat Earnings Report

Shares of Morgan Stanley added 1.8% to trade at $44.60 per share in pre-trading hours on Tuesday after the bank announced that its quarterly earnings climbed and beat analyst expectations.

The New York-based firm saw its strongest fourth-quarter profit since the financial crisis with a profit of $1.67 billion, or 81 cents a share. Fueled by a surge of post-election trading activity, the bank’s last-quarter result surpassed the $908 million, or 39 cents a share reported in the same period a year earlier.

Morgan Stanley stated that revenue grew to $9.02 billion in the three-month period ending December from $7.74 billion a year earlier, beating expectations of 65 cents a share on revenue of $8.47 billion in the fourth quarter.

Trade suggestion

Buy Stop at 44.60, Take profit 45.50, Stop loss at 44.00

 

[CSFX.Support]

USD/CAD signal by Capital Street FX

From GMT 08:00 17/01/2017
Till GMT 21:00 17/01/2017

Sell at 1.30900
Take profit at 1.30500
Stop loss at 1.31100

 

[CSFX.Support]

GBPUSD Trade Idea by Capital Street FX

Sterling On Track For The Best One-day Gain Following May’s Speech

Sterling surged steeply on Tuesday, on track for its best one-day gain against the dollar since 2008, after Prime Minister Theresa May said her country would leave the EU’s single market when it exits the European Union.

The currency pair GBPUSD hit 1.23970 – the highest level since January 06th even after PM May put an end to expectation that Britain may seek a “soft Brexit”. In a speech at London’s Lancaster House on Tuesday, the prime minister stated that she will try to achieve “the freest possible trade” with the EU while regaining the control of “the number of people who come to Britain from Europe”.

May said that she will reject the common external tariff which prevents Britain from negotiating separate trade deals with third countries and that both houses of parliament would have a vote on the final Brexit deal, expected in early 2019.

Trade suggestion

Buy Stop at 1.23900, Take profit 1.24300, Stop loss at 1.23700

 

[CSFX.Support]

Daily Report on January 18, 2017 by Capital Street FX

Daily Report on January 18, 2017



European equities opened higher while Asian stock markets stabilized near three-month highs on Wednesday, pushed higher by Hong Kong and Chinese shares. The MSCI's ex-Japan Asia-Pacific shares index advanced 0.4 percent, just shy of a three-month high hit last Thursday. Hong Kong’s Hang Seng rose 1.2 percent and continued its run to the highest level since November. Meanwhile, Tokyo shares erased losses as yen retreated.

Gold and Japanese yen lost ground for the first time in eight trading session although the U.S. dollar remained weak. The greenback fell against most peers after president-elect Donald Trump told the Wall Street Journal that the dollar is “too strong” while China holds down its own currency. Chinese shares gained amid speculation of state efforts to ensure market stability during President Xi Jinping’s appearance at the World Economic Forum in Davos.

The pound witnessed its biggest daily advance against the dollar since the global financial crisis on Tuesday, after Prime Minister Theresa May said U.K. lawmakers will get a vote on the final deal for an exit from the trading bloc. In a highly anticipated speech on Tuesday, PM May planned out the government’s Brexit strategy which involves pulling out of the EU’s single market.

The U.S. Energy Information Administration on Tuesday said that U.S. shale production was set to snap a three-month decline in February. Due to the fact that energy firms have been boosting drilling activity with crude prices hovering near 18-month highs, February production is forecast to edge up 40,750 barrels per day (bpd) to 4.748 million bpd, marking the first month-on-month increase in production since October.

In New Zealand, overall prices in the latest Global Dairy Trade (GDT) auction rose for the first time in three auctions. The index gained 0.6% to $3,517 following a 3.9% decline in the first auction of 2017, broadly in line with consensus expectations of a slight improvement.



Technicals

AUDCAD



Fig: AUDCAD H4 Technical Chart

AUDCAD has been swinging back and forth around the 50.0% Fibonacci since Tuesday, despite support from short-term MA20. As indicated by RSI index, buyers are overwhelming in the market, which may help the pair break out of the current trading range to surge higher.

Trade suggestion

Buy Stop at 0.98800, Take profit at 0.99200, Stop loss at 0.98600



EURNZD



Fig: EURNZD H4 Technical Chart

EURNZD has fallen back below the support at 1.48500 after brief correction. The pair looks set to extend its downtrend with bearish force reigning in the market. While RSI is heading towards the oversold zone, ADX index is edging higher, suggesting strong sellers.

Trade suggestion

Sell Stop at 1.48300, Take profit at 1.47700, Stop loss at 1.48600



WTI



Fig: WTI H4 Technical Chart

WTI crude prices have breached the support at 52.30 and also returned to the trading range formed by lower highs and lower lows. The price action has crossed over the moving averages from above, indicating a reversal into a down trend. The support at 51.50 is within the sight.

Trade suggestion

Sell Stop at 52.00, Take profit at 51.50, Stop loss at 52.25



EURO 50 Index



Fig: EURO 50 Index H4 Technical Chart

Euro 50 Index opened higher but soon pared all of its gains in early trade to head lower. It seems like the index failed to resist the resistance at 3300.00 and two MAs that are hanging above the price action. The stock benchmark may find its support at 3260.00.

Trade suggestion

Sell Stop at 3280.00, Take profit at 3260.00, Stop loss at 3290.00

 

[CSFX.Support]

CSX Trade Idea by Capital Street FX

CSX Shares Plunge After Company’s EPS Misses Q4 Earnings

Shares of CSX Corp. plummeted nearly 4% late Tuesday after the No. 3 U.S. railroad reported fourth-quarter earnings that missed expectations.

The Jacksonville, Florida-based company said it earned $458 million, or 49 cents a share, in the quarter, compared with $466 million, or 48 cents a share one year ago. CSX reported fourth-quarter sales of $3.04 billion, beating $2.78 billion in the year-ago period. However, analysts forecast the company’s adjusted earnings of 50 cents a share on sales of $2.88 billion.

Coupled with low commodity prices and strength in the U.S. dollar in 2016, higher costs for labor, materials and fuel were also headwinds that caused CSX’s profit to dip compared with a year earlier.

Trade suggestion

Sell Stop at 36.58, Take profit 35.50, Stop loss at 37.00

 

[CSFX.Support]

GBP/USD signal by Capital Street FX

From GMT 07:00 18/01/2017
Till GMT 21:00 18/01/2017

Buy at 1.23500
Take profit at 1.24100
Stop loss at 1.23200

 

[CSFX.Support]

Daily Report on January 19, 2017 by Capital Street FX

Daily Report on January 19, 2017



European shares were struggling for direction in the early trade on Thursday, with investors taking a cautious stance ahead of the European Central Bank’s first policy meeting of the year and then President-elect Donald Trump’s inauguration scheduled for Friday. The dollar eased off its gains stemming from hawkish remarks from Federal Reserve Chairwoman Janet Yellen late Wednesday.

Markets are focusing on the ECB meeting in Frankfurt. The European central bank led by President Mario Draghi is expected to make no changes to its easing position and interest rates, after extending the run of quantitative easing in December. The rate decision is due at 12:45 p.m. London time, or 7:45 a.m. Eastern Time, followed by Draghi’s press conference at 1:30 p.m. GMT.

The U.S. dollar strengthened in Asian session. Speaking before the Commonwealth Club of California in San Francisco yesterday, Fed Chair Janet Yellen stated that the national economy has been near full employment with inflation heading toward the Federal Reserve's 2 percent goal. This "makes sense" for the U.S. central bank to reduce the level of monetary support gradually and lift interest rates “a few times a year” through 2019.

Crude price remained subdued; paring earlier gains achieved after the American Petroleum Institute late Wednesday reported a drop in U.S. crude supplies last week. The API data showed a decrease of 5 million barrels in U.S. crude supplies for the week ended Jan. 13. However, the report also indicated a jump of 9.8 million barrels in gasoline supplies and a rise of 1.2 million barrels in distillates. Supply data from the Energy Information Administration will be released later on the day.

Elsewhere, the Australian Bureau of Statistics on Thursday reported the number of people employed rose by 13,500, compared with an expected 10,000 increase. With participation rate rising to 64.7% in December from 64.6% in November, the jobless rate advanced for a second-straight month, hitting a higher-than-expected seasonally adjusted 5.8% in December, from 5.7% in November.



Technicals

GBPJPY



Fig: GBPJPY H4 Technical Chart

GBPJPY has breached above the 23.6% Fibonacci retracement and is struggling around the 141.400 – the level it has moved sideways before. Both the RSI and ADX index are soaring, suggesting a strong uptrend. A firm support at 142.500 can turn into a resistance for the pair.

Trade suggestion

Buy Stop at 141.500, take profit at 142.500, stop loss at 141.000



EURGBP



Fig: EURGBP H4 Technical Chart

EURGBP reversed lower after a correction that took the pair to as high as 0.87066. However, the bull run failed to sustain its momentum and had to let the bear jump in. The short-term MA20 has crossed over the long-term MA50 from above, confirming the down move.

Trade suggestion

Sell Stop at 0.86500, take profit at 0.86000, stop loss at 0.86750



BRENT



Fig: BRENT H4 Technical Chart

Brent crude is swinging around the 54.35 level. Latest candles with short bodies and long shadows (both upper and lower) indicate that the market is struggling for direction. Steep drop yesterday brought the price into a correction but buyers could not retain its strength. The short-term MA20 has converged with the MA50 from above, suggesting further down moves.

Trade suggestion

Sell Stop at 54.20, take profit at 53.60, stop loss at 54.50



SUGAR



Fig: Sugar H4 Technical Chart

Sugar has broken out of a narrow trading range, which is between the support at 20.50 and the 23.6% Fibonacci retracement, to surge strongly higher. The commodity also surpassed the highest level since November 15th and is heading to the resistance at 21.80. The %K line is taking lead ahead of the %D line.

Trade suggestion

Buy Stop at 21.30, take profit at 21.80, stop loss at 21.00

 

[CSFX.Support]

Netflix Trade Idea by Capital Street FX

Netflix Records Rising Earnings with Strong New Subscribers Globally

Shares of Netflix rose as much as 8.2 percent in after-hours trading after the company reported a profit for its fourth quarter that advanced compared to the same period last year.

Streaming video pioneer earned $66.75 million, or $0.15 per share in the three-month period ending December, which is up from 29.74 million, or $0.07 per share, in last year’s fourth quarter. Revenue for the quarter rose 36.3% to $2.48 billion, surpassing $1.82 billion recorded last year.

In its earnings report, Netflix said the number of new subscribers surged by 7.1 million globally, which is far more than the 5.2 million analysts had expected. The company also plans to release more than 1,000 hours of original programming this year, up from 600 hours last year.

Trade suggestion

Buy Stop at 143.80, Take profit 146.00, Stop loss at 143.00

 

[CSFX.Support]

CAD/JPY signal by Capital Street FX

From GMT 10:00 19/01/2017
Till GMT 21:00 19/01/2017

Sell at 86.200
Take profit at 85.700
Stop loss at 86.400

 

[CSFX.Support]

Daily Report on January 20, 2017 by Capital Street FX

Daily Report on January 20, 2017



European shares were mixed with the Stoxx Europe 600 Index poised for its worst week since early December, as investors remained cautious before Donald Trump delivers his inauguration speech and takes office as the 45th president of the United States. Meanwhile, U.S. stock futures were little changed Friday, keeping the equity market on track for weekly losses.

The dollar pared losses in European session after having lost ground in Asian trading hours. The decline came from U.S. Federal Reserve Chairwoman Janet Yellen’s remarks that she saw no reason to rapidly raise interest rates. In a speech at the Stanford Institute for Economic Policy Research, Yellen stated that she was not worried about the surge in inflation and headwinds from both domestic and international economic might restrain overall U.S. growth over the medium term.

Chinese stocks witnessed the biggest daily gain in more than two weeks following the report on the country’s gross domestic product data. China’s GDP was reported to have accelerated for the first time in two years in the final quarter of 2016, at the pace of 6.8%. This was above a 6.7 percent median estimate in a Bloomberg survey.

Elsewhere, the U.K. Office for National Statistics said on Friday said national retail sales fell at the fastest pace in almost five years in December. As rising prices caused consumers to buy less, the volume of goods sold in stores and online fell 1.9 percent from November. That was the biggest drop since April 2012 and far exceeded the modest decline predicted by economists.



Technicals

USDCAD



Fig: USDCAD H4 Technical Chart

USDCAD rebounded from the support at 1.32800 to breach the 38.2% Fibonacci retracement once again. The pair looks set to surpass a two-week high at 1.33528 logged yesterday. The resistance at major threshold 1.34000 is within the sight. The RSI has reached the overbought zone, suggesting an upcoming correction.

Trade suggestion

Buy Stop at 1.33600, Take profit at 1.34000, Stop loss at 1.33400



USDJPY



Fig: USDJPY H4 Technical Chart

Supported by the short-term 20-period moving average, the pair USDJPY pulled back to retest the resistance at 115.300. After a correction, the price is expected to break above this level and attempt another resistance at 116.300. Soaring RSI and ADX indexes confirm the uptrend.

Trade suggestion

Buy Stop at 115.500, Take profit at 116.300, Stop loss at 115.100



SILVER



Fig: SILVER H4 Technical Chart

Silver is facing the long-term MA50 at around 16.859 after the metal failed to break above the short-term MA20. In the event of continual decline, the commodity may fall to as low as the 61.8% retracement.

Trade suggestion

Sell Stop at 16.800, Take profit at 16.600, Stop loss at 16.900



DAX 30 Index



Fig: DAX 30 H4 Technical Chart

Germany’s Dax 30 index has been trading sideways since the start of this year. The index has been moving between the support at 11540.00 and the resistance at 11700.00. Currently, the stock benchmark has been supported by a couple of moving averages. In addition, RSI has pulled back from the 50 line, suggesting further advances as buyers are dominating in the market.

Trade suggestion

Buy Stop at 11650.00, Take profit at 11700.00, Stop loss at 11625.00