Daily Market Analysis by CapitalStreetFX

[CSFX.Support]

IBM Trade Idea by Capital Street FX

IBM Shares Plunge Despite Earnings and Revenues Above Forecasts

Shares of International Business Machines Corp (IBM) lost 2.4 percent at $162.80 after topping 52-week highs in late trading Thursday after the company reported its 19th straight quarter of declining revenue.

The New York–based enterprise technology company posted quarterly earnings and revenues above analyst estimates. Excluding items, IBM earned $5.01 per share on revenues of $21.77 billion, beating analysts’ average estimate of $4.88 per share on revenue of $21.64 billion in the fiscal fourth quarter.

However, compared to one year ago, IBM’s revenue fell 1.3 percent in the quarter ended Dec. 31 as income from newer areas such as cloud-based services and analytics failed to offset declines in IBM’s core business, such as hardware and services.

Still, for the coming year, IBM forecast $13.80 adjusted earnings per share, above the $13.48 per share expected by analysts.

Trade suggestion

Sell Stop at 162.80, Take profit 160.00, Stop loss at 164.00

 

[CSFX.Support]

USD/CHF signal by Capital Street FX

From GMT 07:30 20/01/2017
Till GMT 21:00 20/01/2017

Sell at 1.00400
Take profit at 1.00000
Stop loss at 1.00600

 

[CSFX.Support]

Daily Report on January 23, 2017 by Capital Street FX

Daily Report on January 23, 2017



The dollar slumped broadly on Monday after President Donald Trump’s protectionist tone overshadowed his sketchy details of tax policies and other stimulus that he had pledged to implement to boost the U.S. economy. The dollar index fell as much as 0.4% to hit an intra-day low at 100.21, on fading optimism over the U.S. economy spurred by the government cutting tax and increasing spending.

At a swearing-in ceremony for his top White House advisers on Sunday, Trump said that he planned talks soon with the leaders of Canada and Mexico to begin renegotiating the North American Free Trade Agreement (NAFTA). Trump seems to stick to his pledge during his presidential campaign that if elected he would renegotiate the NAFTA trade pact to provide more favorable terms to the United States. The 45th U.S. president also and vowed to put "America first", laying out two simple rules - buy American and hire American in his inaugural address last Friday.

With the Trump administration declaring its intention to withdraw from the Trans-Pacific Partnership (TPP), shares of Japan and Australia – two countries that have signed up for the agreement – fell. Japan's Nikkei dropped 1.1 percent while shares in Australia dropped 0.8 percent. However, other parts of Asia remained resilient. MSCI's broadest index of Asia-Pacific shares outside Japan rose 0.3 percent, with Taiwan shares leading the gains and coming just shy of 1-1/2-year highs.

On the contrary, European shares were expected to open lower and U.S. stock futures dipped 0.3 percent, erasing gains made on Friday. Britain's FTSE might witness a drop of 0.4 percent on the opening while Germany's DAX looked set to lose 0.3%.

Oil struggled for direction on Monday, weighed down by prospects of rising U.S. production. Statements over the weekend from OPEC and other producers that they have been successfully in implementing output cuts failed to offset data that showed U.S. energy companies added more rigs last week. Energy services firm Baker Hughes late Friday reported that Drillers added 29 rigs in the week to Jan. 20, bringing the total count up to 551, the most since November 2015.



Technicals

EURUSD


Fig: EURUSD H4 Technical Chart

Euro remained on an uptrend with steady support from two moving averages that are hanging below the price action. The pair EURUSD pulled back from the support at 1.07200 and is heading to the resistance at 1.08000. RSI is moving upwards, suggesting further advances.

Trade suggestion

Buy Stop at 1.07500, Take profit at 1.08000, Stop loss at 1.07250



COFFEE



Fig: Coffee H4 Technical Chart

Coffee is surging steadily, extending gains following a breakout from the 38.2% Fibonacci retracement. Although recent candles with long bodies show a strong uptrend, the market has entered the overbought zone, which signals a short-live advance. The resistance at 157.00 may witness a pullback.

Trade suggestion

Buy Stop at 154.10, Take profit at 157.00, Stop loss at 153.00



BRENT



Fig: H4 Technical Chart

Brent crude fell sharply after a short period of time moving sideways around 55.50 level. The commodity dropped below the 55.00 support and headed lower to another major stance at 54.00. Recent declines have brought the market into the bearish territory, as indicated by RSI index whi

 

[CSFX.Support]

USD/JPY signal by Capital Street FX

From GMT 07:00 23/01/2017
Till GMT 21:00 23/01/2017

Sell at 113.200
Take profit at 112.600
Stop loss at 113.500

 

[CSFX.Support]

Yahoo Trade Idea by Capital Street FX

Yahoo Posts Quarterly Earnings and Sales Above Market Forecasts

Shares of Yahoo Inc. rose as much as 2% late Monday before retreating to trade at $42.88 per share, up 1.13% in after-trading hours. The internet company reported fourth-quarter adjusted earnings and sales above expectations.

Yahoo said it earned $162 million or 17 cents a share in the three-month period ending December. The result contrasted with a loss of $4.43 billion, or $4.70 a share, in the year-ago quarter. Adjusted for one-time items, Yahoo recorded earnings of 25 cents a share in the quarter, up from 13 cents a share a year ago. Revenue also witnessed an increase compared to that of one year ago.

Yahoo’s revenue reached $1.47 billion, up from $1.27 billion reported a year earlier.

The internet advertising technology company also said the sale of its core business to Verizon will be delayed to close in the second quarter instead of in the first quarter “given work required to meet closing conditions”.

Trade suggestion

Buy Stop at 42.90, Take profit 44.50, Stop loss at 42.60

 

[CSFX.Support]

AUD/NZD signal by Capital Street FX

AUD/NZD signal by Capital Street FX

From GMT 09:00 24/01/2017
Till GMT 21:00 24/01/2017

Sell at 1.04650
Take profit at 1.04300
Stop loss at 1.04800

 

[CSFX.Support]

Daily Report on January 24, 2017 by Capital Street FX

Daily Report on January 24, 2017



The U.S. dollar extended its downward rally to a fourth day after U.S. Treasury Secretary Nominee Steven Mnuchin stated that a strong currency could hurt the economy. The dollar traded at the lowest level since early December, also weighed down by concerns about the impact of U.S President Donald Trump's protectionist trade stance.

The dollar index, which tracks the greenback against a basket of six major peers, slipped as much as 0.2 percent to 99.92 - seven-week lows in Asian trade on Tuesday. U.S. President Donald Trump had signed a memorandum directing the U.S. Trade Representative to withdraw the U.S. as a signatory to the Trans-Pacific Partnership accord with 11 other nations.

Meanwhile, Australia and New Zealand said on Tuesday they hoped to salvage the Trans-Pacific Partnership (TPP) by encouraging China and other Asian nations to join the trade pact after U.S. President Donald Trump kept his promise to withdraw his country from the trade deal.

The dollar's weakness gave an additional lift to other currencies including sterling. The pound was slightly lower on Tuesday after reaching six-week peaks a day earlier. Britain's Supreme Court is expected to rule that the government needs parliamentary approval to trigger formal talks about the country's exit from the European Union later on the day.

Elsewhere, the Nikkei-Markit flash manufacturing purchasing managers index (PMI) for Japan was reported to climb to 52.8 in January, up from 52.4 in December. This is the highest level seen since March 2014, indicating that activity levels improved during the month.



Technicals

NZDUSD



Fig: NZDUSD H1 Technical Chart

NZDUSD pulled back after having fallen below the support at 0.72200. The price action has crossed over the short-term MA20 but failed to sustain the bearish force. As can be observed from ADX chart, the index is heading downwards, suggesting a weakening downtrend. The resistance at 0.72600 is within the sight.

Trade suggestion

Buy Stop at 0.72300, Take profit at 0.72600, Stop loss at 0.72150



EURNZD



Fig: EURNZD H4 Technical Chart

EURNZD has been trading sideways around the support at 1.48500. The pair has also been depressed by two moving averages hanging above the price action. RSI index remained under the central line, indicating an overwhelming bullish force in the market. The pair may fall as low as 1.47700.

Trade suggestion

Sell Stop at 1.48400, Take profit at 1.47700, Stop loss at 1.48700



BRENT



Fig: BRENT H4 Technical Chart

Brent crude is retesting the highest level since last Friday at 55.79. The commodity price fell as low as 54.63 yesterday and was supported by the short-term MA20 to rebound higher. The RSI index is soaring to the overbought zone. Dominating buyers in the market may bring the price to as high as 56.60 – the level not seen in a week.

Trade suggestion

Buy Stop at 55.80, Take profit at 56.60, Stop loss at 55.40



FTSE 100 Index



Fig: FTSE 100 Index H4 Technical Chart

FTSE has been moving sideways to higher since the start of this week but in general the index has been under downward pressure created by the short-term MA20. The stock benchmark may fall below the 7260.00 level again as RSI one more time headed back to the bearish zone.

Trade suggestion

Sell Stop at 7260.00, Take profit at 7230.00, Stop loss at 7275.00

 

[CSFX.Support]

Daily Report on January 25, 2017 by Capital Street FX

Daily Report on January 25, 2017



Asian stocks joined a global equities rally after U.S. shares closed higher on Tuesday. At the close in NYSE, the Dow Jones Industrial Average added 0.57% and the NASDAQ Composite index gained 0.86%. Meanwhile, the S&P 500 index closed at a record, up 0.66%. The MSCI Asia Pacific Index headed toward the highest closing level since September as equity markets from Tokyo to Australia climbed.

A surge in commodities prices bolstered raw-materials companies. Copper prices rose steeply on Tuesday to an 18-month high, with the latest leg up fanned by global production problems at BHP Billiton Ltd. The world's largest miner by market value has been facing with a prolonged power blackout at a vast Australian mine and threatened strike action by workers in Chile which may trim its output at the Escondida mine.

As a result, the company lowered its full year guidance for this fiscal year given a sharp fall in first-half output. BHP forecast a supply of 1.62 million metric tons of the metal during the year through June, down 2% or 40,000 tons on a prior estimate.

In a report published on Wednesday, the RBA said that Australian trimmed mean CPI advanced to a seasonally adjusted 0.4%, from 0.4% in the preceding quarter. The figure fell short of consensus estimate calling for an increase of 0.5%.

Official data from Australian Bureau of Statistics also reflected slower-than-forecast inflation which was partly due to the weakness of China’s currency against the local dollar. Decreasing cost of imports like clothing only pushed quarterly headline CPI 0.5% higher compared a forecast of 0.7% by economists. Annual CPI rose 1.5%, remaining below the bottom of the central bank’s target range for a ninth straight quarter.

Oil edged lower on Wednesday as concern over an increase in U.S. inventories weighed on the market. Weekly inventory data from the American Petroleum Institute showed U.S. crude, gasoline and diesel stocks all rose last week. The Energy Information Administration will report its data later on the day.



Technicals

EURAUD



Fig: EURAUD H4 Technical Chart

EURAUD one more time had to give up its bull run at the resistance at 1.42400. The last pullback was also due to downward pressure created by the short-term MA20. This time, the price action has crossed over both long-term and short-term MAs. Moreover, the MA20 has converged with the MA50 from below, suggesting a reversal into an uptrend.

Trade suggestion

Buy Stop at 1.42400, take profit at 1.43000, stop loss at 1.42100



WTI



Fig: WTI H4 Technical Chart

WTI has been tracing a downtrend with the resistance formed by connecting lower highs recorded in the last 3 weeks. The price action has twisted with the moving averages, suggesting an unclear trend in the market. RSI has been swung around the 50 line, confirming indecisive moves. The support at 52.00 is within the sight.

Trade suggestion

Sell Stop at 52.80, take profit at 52.00, stop loss at 53.20



Natural Gas



Fig: Natural Gas H4 Technical Chart

Natural Gas has been trapped between a narrow trading range recently. The commodity has swung back and forth within a support at 3.260 and a resistance at 3.350. The RSI that has moved past the 50 line signals the price may test the upper range bounce again.

Trade suggestion

Buy Stop at 3.300, take profit at 3.350, stop loss at 2.275



Dow Jones



Fig: Dow Jones H4 Technical Chart

Dow Jones broken out of a slopping downtrend yesterday after having breached the resistance formed by lower highs. The sharp moves also brought the price action above two moving averages. Both RSI and ADX are heading upwards, suggesting a strong uptrend which may send the index to the 20,000.00 threshold.

Trade suggestion

Buy Stop at 19,950.00, take profit at 20,000.00, stop loss at 19,925.00

 

[CSFX.Support]

Slower-than-forecast Inflation Data Drags Australian Dollar Down

Slower-than-forecast Inflation Data Drags Australian Dollar Down

Australian dollar fell to the lowest level versus its American counterpart since last Friday after the Reserve Bank of Australia reported a weaker-than-expected data on change in the price of goods and services purchased by consumers in last quarter.

In a report published on Wednesday, the RBA said that Australian trimmed mean CPI advanced to a seasonally adjusted 0.4%, from 0.4% in the preceding quarter. The figure fell short of consensus estimate calling for an increase of 0.5%.

Official data from Australian Bureau of Statistics also reflected slower-than-forecast inflation which was partly due to the weakness of China’s currency against the local dollar. Decreasing cost of imports like clothing only pushed quarterly headline CPI 0.5% higher compared a forecast of 0.7% by economists.

Annual CPI rose 1.5%, remaining below the bottom of the central bank’s target range for a ninth straight quarter.

Trade suggestion

Sell Stop at 0.75400, Take profit 0.75000, Stop loss at 0.75600

 

[CSFX.Support]

Ford Trade Idea by Capital Street FX

Ford Reports A Quarterly Loss, Remaining Downbeat Forecast for 2017

Shares of Ford Motor Company lost nearly 1% in premarket trade on Thursday after the No. 2 U.S. automaker reported a loss of $783 million, or 20 cents per share for the fourth quarter.

The loss in the quarter was due to a $3 billion non-cash accounting re-measurement announced last week. Excluding one-time items, Ford earned 30 cents a share, matching the estimates of analysts.

For the full year, net income came in at $4.6 billion, or $1.15 per share. Revenue for the three-month quarter ending December hit $38.7 billion, above the $35.0 billion consensus estimate. The company did not make the year-earlier revenue available.

Looking toward 2017, Ford maintained a forecast that calls for less profit than 2016.

Trade suggestion

Sell Stop at 12.68, Take profit 12.00, Stop loss at 13.00

 

[CSFX.Support]

AT&T Trade Idea by Capital Street FX

AT&T Adds More Smartphone Customers, Earnings In Line with Forecasts

Shares of AT&T Inc added more than 1% in after-hours trading, following the fourth-quarter earnings report that matched analysts’ estimates.

The No.2 U.S. wireless carrier said it earned $2.4 billion, or 39 cents a share, in the quarter, compared with 65 cents a year ago. Adjusted for one-time items, the telecom reported earnings of 66 cents a share, compared with 63 cents a share in the year-ago period.

The company recorded revenue of $41.8 billion in the quarter, saying that it added 2.8 million net wireless accounts last quarter, which send the total number of wireless accounts in 2016 to 9.5 million, regardless of stiff competition from smaller rivals T-Mobile U.S. Inc and Sprint Corp.

Trade suggestion

Buy Stop at 41.85, Take profit 43.00, Stop loss at 41.00

 

[CSFX.Support]

GBP/CHF signal by Capital Street FX

From GMT 07:15 26/01/2017
Till GMT 21:00 26/01/2017

Buy at 1.26400
Take profit at 1.27000
Stop loss at 1.26100

 

[CSFX.Support]

Daily Report on January 27, 2017 by Capital Street FX

Daily Report on January 27, 2017



Asian shares were steady on Friday in holiday-thinned trade with a slew of markets closed for Lunar New Year celebrations. MSCI's broadest index of Asia-Pacific shares outside Japan was little changed but is on track to end the week up 1.9 percent. While markets in China, South Korea, Taiwan and Vietnam are closed for the start of Lunar New Year, Hong Kong, Malaysia and Singapore will have shortened sessions.

Japanese shares rose 0.4 percent, extending gains for the week to 1.8 percent thanks to a drop in the yen. The Japanese currency weakened for a second day as the BOJ’s move signaled it won’t let 10-year yields rise. The BOJ is scheduled to hold a policy meet on January 30-31 but the central bank is not expected to leave its policies unchanged when board members meet next week. However, some economic growth forecasts are highly anticipated, especially in terms of inflation.

That is because the pace of decline in consumer prices in Japan eased in the current month. According to the Japanese Statistics Bureau, consumer prices excluding fresh food in Tokyo extended its slide for a 10th straight month, but the scale of the drop was narrower than expected. The leading indicator for national figures fell 0.3 percent in January compared to a forecast of -0.4%. The national core CPI fell 0.2 percent in December from a year earlier – the slightest drop since March 2016.

The dollar edged up on Friday, paring weekly losses. The greenback is on track to lose 0.2 percent against the basket of currencies of its trade-weighted rivals for the week, weighed down by U.S. President Donald Trump's protectionist policies. The White House said on Thursday that Trump proposed a new 20 percent tax on goods from Mexico to pay for a border wall between the two countries.

The Mexican peso fell more than 0.5 percent against the dollar in Asian trade following news of the border tax. The pair USDMXN, as a result, rebounded from Thursday's more than three-week low of 20.8568.



Technicals

AUDJPY


Fig: AUDJPY H4 Technical Chart

AUDJPY is marching towards a trading range which it had breached on Monday. The pair tried heading back to this range twice then but failed to cross over the lower boundary from below. RSI is surging, signaling strong bullish force in the market. However, the resistance at 87.000 is within the sight.

Trade suggestion

Buy Stop at 86.700, take profit at 87.000, stop loss at 86.500



USDCAD



Fig: USDCAD H4 Technical Chart

USDCAD failed to surpass the short-term 20-period moving average and had to reverse lower, heading towards the support at 1.30500. RSI remained below 50 and is declining, suggesting further decline.

Trade suggestion

Buy Stop at 1.31000, take profit at 1.30500, stop loss at 1.31250



Natural Gas



Fig: Natural gas H4 Technical Chart

Natural gas once again had to give up its bull run after hitting the resistance at 3.500. The commodity has fallen below the 3.350 support with the price action breaching a couple of moving averages from above. Natural gas is heading towards the 38.2% Fibonacci level with RSI index declining while –DI has crossed over the +DI from below.

Trade suggestion

Sell Stop at 3.250, take profit at 3.170, stop loss at 3.290



BRENT



Fig: BRENT H4 Technical Chart

Brent crude fell into a correction after having broken above a shrinking trading range. The commodity had been supported by a couple of moving averages before witnessed a strong rally that sent the price to the highest level since January 17th. After a period of consolidation, Brent crude price may extend its rally to reach as high as 57.30.

Trade suggestion

Buy Stop at 56.50, take profit at 57.30, stop loss at 56.10

 

[CSFX.Support]

Intel Trade Idea by Capital Street FX

Intel’s Earnings Beat Estimates, Profit Slips Though

Shares of Intel Corp headed back to its trading range after vacillating widely in after-hours trading following the company’s fourth-quarter earnings announcement.

Overall for the fourth quarter, the Santa Clara, Calif., chip giant reported earnings of 73 cents a share, or 79 cents on an adjusted basis, on revenue of $16.37 billion. Analysts expected an average of 74 cents a share in adjusted earnings on $15.75 billion revenue.

However, Intel Corp.’s fourth-quarter profit slipped 1.4% in the quarter as the company logged higher research and developments costs, along with $100 million in restructuring and other charges.

Chief Executive Brian Krzanich said Intel is banking on arenas beyond its traditional stronghold, the market for PCs, such as data storage products using a high-performance memory technology known as 3D XPoint and chips that outfit a wide range of products, especially cars.

Trade suggestion

Buy Stop at 37.60, Take profit 38.60, Stop loss at 37.10

 

[CSFX.Support]

USD/JPY signal by Capital Street FX

From GMT 07:00 27/01/2017
Till GMT 21:00 27/01/2017

Buy at 115.200
Take profit at 116.000
Stop loss at 114.800

 

[CSFX.Support]

Daily Report on January 30, 2017 by Capital Street FX

Daily Report on January 30, 2017



The dollar pared losses in the second half of Asian trading session after declining sharply in early hours on Monday. In addition, Asian share markets and U.S. stock futures were also lower as traders were weighed by the tensions sparked by Donald Trump’s order halting some immigration. Extending moves that support his 'America First' policy, the 45th U.S. President introduced immigration curbs that drew criticism from world governments and some of the largest companies including Netflix Inc. and Alphabet Inc.

Trump defended the move, which puts a 120-day hold on allowing refugees into the country, an indefinite ban on refugees from Syria and a 90-day bar on citizens from Iran, Iraq, Libya, Somalia, Sudan, Syria and Yemen, as vital for U.S. security. However, the executive order sparked huge protests in many U.S. cities, not to mention consequences of the detention and deportation of hundreds of people arriving at U.S. airports.

The greenback weakened against all its major peers, trading near the lowest levels in two months. The dollar index, which tracks the greenback against a basket of trade-weighted peers, dipped as much as 0.3 percent to 100.17 in Asian trade before retreating back to the open level ahead of the European session.

MSCI's broadest index of Asia-Pacific shares outside Japan lost 0.4 percent in holiday thinned trade as markets in Hong Kong, China, Malaysia, Korea, Singapore, Taiwan and Vietnam are shut for holidays. Australian shares tumbled more than 1 percent, while New Zealand pulled back 0.6 percent. Japan's Nikkei widened losses to 0.7 percent as demand for the safe-haven yen weighed on exporters.

Pointing to a weaker opening on Wall Street, S&P 500 futures, Dow futures and Nasdaq futures all shed around 0.3 percent.

Oil prices extended its slide on Monday, dragged down by signs of growing output in the United States that could counterbalance output cuts by OPEC and other producers. The U.S. weekly oil and gas rig count from Baker Hughes showed that U.S. drillers added 15 oil rigs last week, sending the total count to 566, the largest amount since November 2015.



Technicals

USDCAD



Fig: USDCAD H4 Technical Chart

USDCAD have not only pared losses but also recorded a gain in European session on Monday. The pair retested the two-day high at 1.31538 and is heading upwards to the resistance at 1.31900 where the long-term MA50 is also moving around. RSI has moved past the central line, confirming the uptrend.

Trade suggestion

Buy Stop at 1.31600, take profit at 1.31900, stop loss at 1.31450



GBPJPY



Fig: GBPJPY H1 Technical Chart

GBPJPY has been under downward pressure from two moving averages after the pair crossed over these two dynamic supports in early trading hours on Monday. The short-term MA20 has converged with the long-term MA50 from above, suggesting a reversal into a downtrend. The support at 143.000 is within the sight.

Trade suggestion

Sell Stop at 143.600, take profit at 143.000, stop loss at 143.900.



WTI


Fig: WTI H4 Technical Chart

U.S. crude price has fallen into a consolidation following a steep decline last Friday. The commodity broke out of a shrinking trading day from below but bulls failed to sustain the momentum and had to let the price nose-dive. WTI price fell under the range and is likely to dip lower with bears overwhelming in the market, as indicated by the RSI index.

Trade suggestion

Sell Stop at 52.80, take profit at 52.00, stop loss at 53.20



Euro50



Fig: Euro 50 Index H4 Technical Chart

Euro 50 index kept on falling after having opened lower on Monday. The stock benchmark has also crossed over a couple of moving averages which had prevented the index from falling further last Friday. While RSI pulled back from the 50 line to move in the bearish territory, a wide gap between the +DI and –DI lines has appeared in the stochastic chart.

Trade suggestion

Sell Stop at 3270.00, take profit at 3250.00, stop loss at 3280.00

 

[CSFX.Support]

Trump’s Immigration Ban Puts Pressure On U.K. Shares

Trump’s Immigration Ban Puts Pressure On U.K. Shares

U.K. shares extended the decline in global stock markets on Monday after Asian equities plunged into the red following U.S. President Donald Trump’s executive order banning citizens of seven predominantly Muslim countries from entering the U.S.

The order signed over the weekend sparked two-day protests at airports throughout the U.S and spurred concerns that Trump’s protectionism policies may hurt politics and businesses world-wide.

The FTSE 100 index fell nearly 1% to a one-month low at 7114.80 in early hours trading with losses in energy and mining shares overwhelming gains in Vodafone shares.

Commodity-related stocks traded mostly lower. Shares of Anglo American PLC lost 1.13% why those of BHP Billiton PLC and Rio Tinto PLC lost 1.03% and 1.3%, respectively. Randgold Resources also witnessed its shares plunge 0.61%.

Oil producers such as BP PLC and Royal Dutch Shell PLC contributed to the decline of the index with each company’s shares retreating more than 1%.

Vodafone PLC gained 2.64% after the company said it’s in talks with Aditya Birla Group to purchase its Idea Cellular Ltd unit.

Trade suggestion

Sell Stop at 7130.00, Take profit 7120.00, Stop loss at 7135.00

 

[CSFX.Support]

USD/MXN signal by Capital Street FX

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

Sell at 20.85000
Take profit at 20.60000
Stop loss at 20.95000

 

[CSFX.Support]

Daily Report on January 31, 2017 by Capital Street FX

Daily Report on January 31, 2017



Asian shares continued its downward rally on Tuesday, weighed down by bearish sentiment stemming from the biggest loss in six weeks that global stocks recorded on Monday. The tension in U.S. politics mounted after the U.S. President Donald Trump fired top federal government lawyer Sally Yates on Monday as she refused to defend new travel restrictions that bar Syrian refugees indefinitely and suspend travel to the United States from seven Muslim-majority countries.

Rising concern over the unpredictability of decisions in the new administration sent the U.S. S&P 500 Index 0.6 percent lower, which marked its biggest fall in a month. MSCI's gauge of the world's 46 stock markets also shed 0.6 percent, its largest loss in a month and a half. On Tuesday, MSCI's broadest index of Asia-Pacific shares outside Japan lost 0.5 percent while Japan's Nikkei 225 dropped 1.7 percent, its biggest fall in almost three months.

The Japanese currency was little changed after the Bank of Japan kept its policy on hold, as expected, at the two-day meeting ending on Tuesday. The BOJ maintained the 0.1 percent interest it charges on a portion of the excess reserves that financial institutions park with the central bank and left its inflation forecasts largely unchanged.

Elsewhere, Germany's statistics body on Tuesday reported the nation’s retail sales dropped unexpectedly in December. Retail sales were said to seasonally drop 0.9% from November, contrasting with expectations calling for a gain of 0.5%. While high street sales declined sharply compared to the same period a year earlier, internet and mail-order business saw sales jump 5.1% from December 2015.



Technicals

GBPCHF


Fig: GBPCHF H4 Technical Chart

GBPCHF continued to step lower after a correction that sent the pair to as high as 1.24500. The pair is facing the support at 1.24000 and is likely to breach this level with downward pressure from two moving averages hanging above the price action. In the event of continual down move, the pair can fall as low as 1.23000.

Trade suggestion

Sell Stop at 1.23800, Take profit at 1.23000, Stop loss at 1.24200



EURGBP



Fig: EURGBP H4 Technical Chart

EURGBP reversed higher following a consolidation at around 0.85700. The price action has crossed over the long-term MA50 and is heading upwards to the resistance at major level 0.87000. RSI is soaring to the overbought zone, indicating strong bullish momentum.

Trade suggestion

Buy Stop at 0.86200, Take profit at 0.87000, Stop loss at 0.85800



Sugar



Fig: Sugar H4 Technical Chart

Sugar edged lower as the commodity failed to make a breakout from the slopping downward resistance that connects lower highs. The %K line has crossed over the %D line from above, suggesting a reversal into a downtrend. The RSI remained under the central line, indicating that bears are overwhelming in the market.

Trade suggestion

Sell Stop at 20.25, Take profit at 20.00, Stop loss at 20.35



DAX 30 Index



Fig: DAX 30 Index H1 Technical Chart

Dax 30 Index reversed lower after the price action hit the short-term MA20 at 11731.53. The benchmark gapped down at the opening but pared the early loss, however, the market remained in the bearish territory, as indicated by the RSI chart. The support at 11650.00 is within the sight.

Trade suggestion

Sell Stop at 11710.00, Take profit at 11650.00, Stop loss at 11740.00

 

[CSFX.Support]

Pfizer Trade Idea by Capital Street FX

Pfizer Losses 3% in Profit, Earnings Shy of Forecasts

Shares of Pfizer Inc. dropped as nearly 1.3% in premarket trading on Tuesday after the pharmaceutical corporation reported a fourth-quarter earnings that decreased compared to the same period last year.

The largest U.S. drugmaker posted a net income $775 million, or 13 cents per share, in the quarter, compared with a loss of $172 million, or 3 cents per share, in the same period a year ago. Excluding one-time items, adjusted earnings reached 47 cents per share, but still missed consensus estimate of 50 cents per share.

Pfizer’s revenue for the quarter fell 3.0% from $14.05 billion last year to $13.63 billion. The company cited a strong dollar and fewer selling days compared to the year-ago quarter as reasons for a decline in quarterly revenue.

Trade suggestion

Sell Stop at 31.00, Take profit 30.50, Stop loss at 31.25