Daily Market Analysis by CapitalStreetFX

[CSFX.Support]

Daily Report on February 23, 2017

Daily Report on February 23, 2017



Asian shares slumped on Thursday, following declines in Wall Street overnight after minutes from the Federal Reserve’s latest meeting showed officials were cautious about raising U.S. interest rates. After the S&P 500 index slipped from all-time highs, stocks in Japan and Hong Kong led the list of fallers, pushing Asian stocks down from a 19-month high.

MSCI's broadest index of Asia-Pacific shares outside Japan edged down almost 0.1 percent while Japan’s Topix index declined 0.3 percent. Japanese shares turned lower following three days of gains as yen strengthened. While Australia’s S&P/ASX 200 Index shed 0.2 percent, New Zealand’s S&P/NZX 50 Index advanced 0.4 percent. Hang Seng China Enterprises Index and Hang Seng China Enterprises Index dropped 0.4 percent both dropped 0.4 percent

According to the latest FOMC minutes, Federal Reserve officials expressed confidence that they can take their time raising rates as there’s little threat inflation will suddenly accelerate. The odds for an increase in March retreated to 36 percent after the minutes. Fed officials were uncertain about issues ranging from the Trump administration’s fiscal stimulus plans to the headwinds a rising dollar may pose.

Crude oil climbed nearly 1 percent on Thursday after the American Petroleum Institute reported a surprise decline in U.S. crude stocks last week. The industry group posted a drop of 884,000 barrels in U.S. oil inventories in the week to February 17 which contrasted with analyst expectations for an increase of 3.5 million barrels.



Technicals

USDCAD



Fig: USDCAD H4 Technical Chart

The currency pair USDCAD has been supported by the short-term MA20 for nearly a week. The price pulled back after it hit the MA20 at 1.31384 and is attempting the resistance at 1.31600. RSI index rebounded from the central line, indicating that bullish momentum remains strong.

Trade suggestion

Buy Stop at 1.31600, Take profit at 1.32000, Stop loss at 1.31400



EURAUD



Fig: EURAUD H4 Technical Chart

EURAUD retreated from the resistance at 1.37400, also depressed by a couple of moving averages. ADX index is declining, showing a weaker uptrend. The support at 1.36300 is within the sight in the event of continual downtrend. RSI is pointing downwards, confirming further declines.

Trade suggestion

Sell Stop at 1.37000, Take profit at 1.36300, Stop loss at 1.37300



BRENT



Fig: BRENT H4 Technical Chart

Brent crude has been tracing an uptrend with higher lows formed in the last two weeks. The crude price is heading for a resistance at 56.40 after crossing over two moving averages. With RSI index surging above the 50 line, the bullish sentiment is expected to send the price higher.

Trade suggestion

Buy Stop at 56.40, Take profit at 56.80, Stop loss at 56.20



FTSE 100



Fig: FSTE 100 H4 Technical Chart

U.K. FTSE 100 index gapped down on Thursday. As indicated by the RSI index which has fallen below the 50 line, the market has entered the bearish territory. However, the support at 7260.00 and the long-term MA50 which are within the sight, can contain the price.

Trade suggestion

Sell Stop at 7280.00, Take profit at 7260.00, Stop loss at 7290.00

 

[CSFX.Support]

HP Trade Idea by Capital Street FX

HP Sales Boosted by Stabilizing PC Market, Shares Rise

Shares of HP Inc rose in the extended session Wednesday after the computer company posted quarterly results that beat economists’ expectations.

The California-based company reported a 3.6 percent rise in quarterly revenue after a prolonged slump thanks to strong sales of notebook PCs. The company’s net earnings from continuing operations; however, dropped to $611 million in the first quarter ended January, from $650 million a year earlier.

Meanwhile, HP’s revenue reached $12.68 billion, up from $12.25 billion recorded in the same period last year and above analysts’ forecast of $11.83 billion. HP’s PC shipments grew 6.6% during the three months through January even global PC shipments declined 1.5% for all suppliers, according to market sources.

Trade suggestion

Buy Stop at 16.60, Take profit 17.00, Stop loss at 16.40

 

[CSFX.Support]

CAD/JPY signal by Capital Street FX

From GMT 11:30 23/02/2017
Till GMT 21:00 23/02/2017

Sell at 86.000
Take profit at 85.500
Stop loss at 86.250

GBP/USD signal by Capital Street FX
From GMT 17:00 23/02/2017
Till GMT 21:00 23/02/2017

Buy at 1.25600
Take profit at 1.26000
Stop loss at 1.25400

 

[CSFX.Support]

Daily Report on February 24, 2017 by Capital Street FX

Daily Report on February 24, 2017



Asian shares trimmed a weekly rally on Friday, slipping from one-and-a-half-year highs. Markets were dragged down by sudden falls in industrial metals including copper. MSCI's broadest index of Asia-Pacific shares outside Japan shed 0.5% but looked set for its fifth straight week of gains. Hong Kong's Hang Seng also lost 0.5% while China's mainland shares dropped 0.4%.

Australian material stocks topped the market decliners in the wake of big falls in the price of copper, iron ore and other commodities. Copper futures tumbled on Thursday amidst rising concerns over China’s demand.

Being on track for a weekly decline of around 2 percent, copper prices were undermined by worries about demand in the world’s biggest copper consumer after China's deputy housing minister Lu Kehua on Thursday said preparatory work was aloof to a nationwide property tax in an attempt to stabilize the property market.

Gold, meanwhile, hovered around 3-1/2-month highs logged on Thursday, heading for a fourth weekly increase. The rally in the previous session came on the back of a weakening dollar which stemmed from failed attempts of Treasury Secretary Steven Mnuchin to support the currency. In a meeting of manufacturing executives at the White House, U.S. President Donald Trump signaled he wants to keep the greenback’s value lower to aid American companies selling products abroad.

Elsewhere, the Energy Information Administration (EIA) on Thursday reported U.S. stockpiles rose last week for a seventh straight week. According to the government data, U.S. crude inventories rose by 564,000 barrels in the week to Feb. 17, below analysts' expectations for a rise of 3.5 million barrels.



Technicals

GBPJPY



Fig: GBPJPY H4 Technical Chart

GBPJPY price action has been trapped in a narrowing trading range formed by lower highs and higher lows. The pair is approaching the upper boundary and is expected to break above the range as RSI has indicated a resurgence of bullish force. ADX is also inching higher, confirming a strong bullish sentiment.

Trade suggestion

Buy Stop at 141.800, Take profit at 142.600, Stop loss at 141.400



GBPAUD


Fig: GBPAUD H4 Technical Chart

GBPAUD has been moving sideways around 1.62750 after breaking the 23.6% Fibonacci level from below. The short-term MA20 has converged with the long-term MA50, suggesting a reversal into an uptrend. RSI remains above 50 and is edging higher, signaling further advances.

Trade suggestion

Buy Stop at 1.62800, Take profit at 1.63300, Stop loss at 1.62500



WTI


Fig: WTI H4 Technical Chart

U.S. crude price rebounded from a support at 54.30, also supported by a short-term 20-period moving average. The commodity resumed its rally following a short correction on Thursday. The bulls appear to jump back to market, as indicated by the RSI which is edging higher. The resistance at 55.00 is within the sight.

Trade suggestion

Buy Stop at 54.50, Take profit at 55.00, Stop loss at 54.25



GOLD


Fig: GOLD H4 Technical Chart

Gold has broken out of a consolidation at 38.2% Fibonacci retracement. After a sharp advance on Thursday which sent the price to 38.2% resistance, the price was contained and forced to move sideways. The price continued to surge higher but the RSI has reached the overbought zone, suggesting the rally will likely be short-lived.

Trade suggestion

Buy Stop at 1253.00, Take profit at 1260.00, Stop loss at 1250.00

 

[CSFX.Support]

FTSE Trade Idea by Capital Street FX

Banking Shares Embroiled in the Red, FTSE 100 Heads For First Weekly Loss

U.K. shares were trading lower on Friday, heading for the first decline following a three-strong run of weekly wins. The benchmark FTSE 100 index lost more than 0.2% to trade below 7260.00, weighed down by banking equities.

Shares of Royal Bank of Scotland Group PLC topped the market’s losers on Friday, slipping about 3% after the banking and financial services company its annual net loss more than tripled to GBP6.96 billion ($8.73 billion) as it had to put aside billions of pounds to settle allegations with U.S. authorities.

Other banking shares edged lower. While Lloyds Banking Group PLC shares dropped more than 0.5%, Standard Chartered PLC plummeted over 4% and Barclays PLC shed nearly 1%.

Trade suggestion

Sell Stop at 7240.00, Take profit 7220.00, Stop loss at 7250.00

 

[CSFX.Support]

Trade signals by Capital Street FX

SILVER signal by Capital Street FX
From GMT 06:00 24/02/2017
Till GMT 21:00 24/02/2017

Buy at 18.200
Take profit at 18.300
Stop loss at 18.150

SUGAR signal by Capital Street FX
From GMT 16:45 24/02/2017
Till GMT 21:00 24/02/2017

Sell at 19.75
Take profit at 19.50
Stop loss at 19.90

 

[CSFX.Support]

Daily Report on February 27, 2017 by Capital Street FX

Daily Report on February 27, 2017



Asian shares edged lower on Monday in the wake of cautiousness that investors grew ahead of U.S. President Donald Trump’s first major address before the Congress on Tuesday and Fed Chair Janet Yellen’s public appearance on Friday. The MSCI Asia Pacific Index dropped 0.5%, reversing a rally of 0.5% last week.

Japanese shares also plummeted on the back of a strengthening yen, skidding 1% with deepest declines belonging to shares of exporters and banks. As well as Hong Kong’s Hang Seng and Shanghai Composite Index which also lost 0.4% and 0.7%, respectively, the S&P/ASX 200 Index lost 0.3% in Sydney.

The dollar struggled for direction as investors were looking to Trump’s remarks later this week. Trump is expected to shed light on his infrastructure spending and tax plans. The president had pledged to cut taxes for the middle class, relax regulations, increase tax on imports goods and services as well as implement changes to encourage U.S. manufacturing.

Sterling dropped more than 0.4% against its American counterpart to trade at $1.242200 per pound after the Times cited unidentified government sources, reporting that U.K. Prime Theresa May’s team was preparing for Scotland to call an independence referendum in March.

According to the news, May could agree to a new Scottish vote if only it is held after the U.K. leaves the European Union. Meanwhile, the Scottish government appears to be increasingly confident it can win a new independence referendum. As stated by sources close to the Edinburgh administration, the government is considering calling one next year as Britain departs from the EU.



Technicals

GBPAUD



Fig: GBPAUD H4 Technical Chart

From as high as 1.63600, GBPAUD slumped, dropping more than 200 points to test the support at 1.61300. The price action fell below both a couple of moving averages and 23.6% Fibonacci retracement. RSI is pointing to the oversold zone, signaling a strong bearish momentum.

Trade suggestion

Buy Stop at 1.61200, Take profit at 1.60400, Stop loss at 1.61600



GBPJPY



Fig: GBPJPY H4 Technical Chart

GBPJPY broke out of a shrinking trading range from above and also breaching the 23.6% Fibonacci level on its way down. The pair retested the lowest level since February 07 and may fall lower to attempt another support handle at 138.000.

Trade suggestion

Sell Stop at 139.000, Take profit at 138.000, Stop loss at 139.500



WTI


Fig: WTI H4 Technical Chart

Supported by a long-term MA50, U.S. crude price reversed higher at as low as 53.92. The price has broken the resistance at 54.30 and is heading towards a one-and-a-half-month high at 55.00. As can be seen from the RSI chart, the index has moved past the central line, suggesting further advances.

Trade suggestion

Buy Stop at 54.45, Take profit at 55.00, Stop loss at 54.20



CAC 40



Fig: CAC 40 index H4 Technical Chart

France’s CAC40 index retreated under downward pressure from two moving averages hanging above the price action. The stock benchmark is heading lower to attempt the support at 4800.00. Supporting further down moves, RSI index is also inching lower.

Trade suggestion

Sell Stop at 4840.00, Take profit at 4800.00, Stop loss at 4860.00

 

[CSFX.Support]

Natural Gas Trade Idea By Capital Street FX

Natural Gas Plunges on Forecasts Calling for Warmer-than-normal Weather

U.S. natural gas futures gapped down on Monday, extending their sharply decline after having fallen steeply last week. The reason behind this downward rally was due to latest forecasts that called for above-average temperatures most parts of the U.S. for the upcoming weeks.

U.S. natural gas for April delivery dropped around 4% to trade at $2.675 per million British thermal units on the back of concerns over declining demand for heating as weather will turn into warmer-than-normal condition in key regions across the U.S. for the rest of the winter, according to updated weather forecasts.

Prices of the commodity plummeted by 7% in the previous week to the lowest level since November 11, 2016.

Trade suggestion

Sell Stop at 2.670, Take profit 2.600, Stop loss at 2.700

 

[CSFX.Support]

GBP/CHF signal by Capital Street FX
From GMT 07:45 27/02/2017
Till GMT 21:00 27/02/2017

Sell at 1.25000
Take profit at 1.24500
Stop loss at 1.25200


USD/JPY signal by Capital Street FX
From GMT 17:00 27/02/2017
Till GMT 21:00 27/02/2017

Sell at 112.000
Take profit at 111.600
Stop loss at 112.200

 

[CSFX.Support]

Daily Report on February 28, 2017 by Capital Street FX

Daily Report on February 28, 2017



Asian shares advanced on Monday after two days of declines. A drop in the Japanese yen overnight gave strength to the country’s stocks. Asian equities were also boosted by bullish sentiment on Wall Street yesterday after the Dow Jones Industrial Average extended its winning streak to 12 sessions, the longest in 30 years.

The MSCI Asia Pacific Index advanced 0.2 percent with the Topix index jumping 0.9 percent. Japanese shares rebounded from Monday’s 1 percent loss. While Australia’s S&P/ASX 200 Index and South Korea’s Kospi each climbed 0.3 percent, Hong Kong’s Hang Seng shed 0.2 percent and the Shanghai Composite Index was little changed.

Dollar hovered around opening price in Asian morning session as investors were cautious ahead of Donald Trump’s address to Congress. Speaking during a meeting with top U.S. health insurance CEOs Monday at the White House, Trump stated that his ministration was working on spending and tax plans, signaling a “big” investment in infrastructure.

Fed Bank of Dallas President Robert Kaplan late Monday said policy makers should raise interest rates “sooner rather than later” and not pay excessive attention to market expectations. According to federal funds futures, the chance of a rate hike at the Fed’s March 14-15 meeting on Monday jumped to 50 percent from 34 percent just five days ago.

Sugar and coffee futures prices tumbled on Monday, stretching its downward rally to a fourth-consecutive trading day amidst improving outlook for production in Centre-South Brazil. According to a report published on Monday by Tropical Research Services, the weather in Centre-South Brazil had been favorable since December, which tends to help raise sugar and coffee output in this area.



Technicals

GBPAUD


Fig: GBPAUD H4 Technical Chart

GBPAUD reversed lower after its price action hit the 23.6% Fibonacci retracement. The pair was also depressed by two moving averages hanging above the price action. As RSI remains under the central line and is pointing downwards, the pair is expected to inch lower.

Trade suggestion

Sell Stop at 1.61600, Take profit at 1.61000, Stop loss at 1.61900



AUDJPY



Fig: AUDJPY H1 Technical Chart

AUDJPY extended its rally following a short correction that pushed the pair back to a support at 86.300. The short-term MA20 has crossed over the long-term MA50 from below, suggesting a reversal into an uptrend. As RSI is in the bullish territory, AUDJPY may attempt a major resistance at 87.000.

Trade suggestion

Buy Stop at 86.600, Take profit at 87.000, Stop loss at 86.400



Coffee



Fig: Coffee H4 Technical Chart

Coffee price has been tracing a steep downtrend for one week. The commodity has breached both 38.2% and 50.0% Fibonacci retracement. In the event of continual down moves, the pair may test a support at 138.90. However, caution should be taken as RSI index has reached the oversold zone, suggesting an upcoming correction for the current trend.

Trade suggestion

Sell Stop at 140.50, Take profit at 138.90, Stop loss at 141.00



EURO 50



Fig: EURO 50 Index H4 Technical Chart

Euro 50 index has been supported by the short-term MA20 and has been tracing this support since last Friday. The stock benchmark had failed to sustain its bearish momentum after breaching the support at 3300.00. With RSI index having surged above 50 which indicates a resurgence of bulls, the price is expected to edge higher.

Trade suggestion

Buy Stop at 3320.00, Take profit at 3340.00, Stop loss at 3310.00

 

[CSFX.Support]

Morgan Stanley Trade Idea by Capital Street FX

Morgan Stanley Shares Turn Lower on the back of Tax Errors

Shares of Morgan Stanley reversed lower in after-hour trading on Monday after closing the session higher due to a report that said the banker had provided a large number of wealth-management clients with wrong information that caused them to pay their taxes inaccurately over the past five years.

The errors occurred in tax caused some wealth management clients to underpay and others to overpay their tax in the five-year period to 2016. The bank said it was setting aside $70 million to cover the costs and “committed to making this right for our clients with minimal inconvenience to them”, according a Morgan Stanley spokesman.

The company also said that it would notify any customers that may have overpaid taxes and reimburse them.

Trade suggestion

Sell Stop at 45.70, Take profit 45.00, Stop loss at 46.00

 

[CSFX.Support]

FTSE 100 Trade Idea by Capital Street FX

U.K. Shares Lose Momentum Ahead of Trump’s Address

U.K. shares struggled for direction on Tuesday as investors were cautious ahead of U.S. President Donald Trump’s first address a joint session of Congress.

The FTSE 100 index swung back and forth between gain and loss amidst rising speculations about Trump’s plans for spending on infrastructure and cutting tax which are expected to be made clear in his speech due after the close of London trading.

Leading the market, shares of aerospace and defense group Meggitt soared considerably by more than 11% after the company announced the plan to raise dividend. Babcock International Group was the second biggest gainer with its shares jumped by 4.3% on the back of upgraded 2017 outlook.

At the bottom of the pile, miner shares declined. Shares of Randgold Resources PLC lost almost 3% while those of BHP Billiton PLC edged 1.36% lower. Fresnillo PLC and Anglo American PLC also found their equities on a decline.

Trade suggestion

Sell Stop at 45.70, Take profit 45.00, Stop loss at 46.00

 

[CSFX.Support]

CAD/JPY signal by Capital Street FX

CAD/JPY signal by Capital Street FX

From GMT 14:30 28/02/2017
Till GMT 21:00 28/02/2017

Sell at 84.900
Take profit at 84.500
Stop loss at 85.100

 

[CSFX.Support]

Daily Report on March 01, 2017 by Capital Street FX

Daily Report on March 01, 2017



Japanese shares increased on Wednesday on the back of the yen stumbling to the lowest level in a week. Japan’s Topix index soared 1.1 percent after having completed a fifth straight monthly advance in February, the longest winning streak since early 2015. Chinese equities also advanced after upbeat manufacturing data. Hong Kong’s Hang Seng index and the Shanghai Composite Index climbed 0.2 percent and 0.4 percent, respectively.

Thanks to a surge in producer prices, China’s official factory gauge firmed in February. Manufacturing purchasing managers index was reported to rise to 51.6 last month, higher than both a median estimate of 51.2 by economists and 51.3 in January. Non-manufacturing PMI declined slightly at 54.2 versus 54.6 in January while private manufacturing PMI from Caixin Media and Markit Economics rose to 51.7.

U.S. gold futures dropped more than 0.5% to trade below $1243.00 an ounce in Asian trading session, hitting the lowest level since last Thursday. The precious metal looked set to extend its downward rally to a third straight day after a handful of Federal Reserve policymakers late Tuesday fueled speculations for a March U.S. rate hike.

While New York Fed President William Dudley said that the case for tightening monetary policy "has become a lot more compelling", San Francisco Fed President John Williams stated that a rate increase next month was very much on the table given full employment and accelerating inflation. According to CME Group’s Fed Watch Tool, traders saw a nearly 62% chance the U.S. central bank would raise its rate at a mid-March meeting. The dollar index, which measures the greenback against a basket of six major rivals advanced 0.24 percent at 101.60.

In his first address to Congress on Tuesday, U.S. President Donald Trump continued to pledge to overhaul the immigration system, improve jobs and wages for Americans and promised "massive" tax relief to the middle class and tax cuts for companies but shed litter light on details of his plans.

Elsewhere, figures released by the Australian Bureau of Statistics on Wednesday showed the country’s gross domestic product expanded 1.1 percent in the fourth quarter. The reading was not only higher than estimates for 0.8 percent growth, but also marked a rebound from a shock negative result in the September quarter. Australia’s economy shrank by 0.5% in the three-month period through September, the first negative quarter in five years.



Technicals

USDCHF


USDCHF has breached a resistance at 1.00900 after rebounding from a support 1.00200. The pair has broken out of a trading range between 1.00200 and 1.00900 to attempt a key resistance at 1.01400. RSI has moved past the 50 line, suggesting a strengthening up trend.

Trade suggestion

Buy Stop at 1.01000, Take profit at 1.01400, Stop loss at 1.00800



AUDCAD


AUDCAD has been moving sideways to higher after breaking out of the resistance at 23.6% Fibonacci level. With support from two MAs moving below the price action and a surging RSI index, the pair is expected to edge higher. However, the RSI index has reached the overbought zone, signaling an upcoming correction.

Trade suggestion

Buy Stop at 1.02200, Take profit at 1.02800, Stop loss at 1.01900



WTI


U.S. crude price has been tracing a decline with lower highs formed along the price action since last Tuesday. The short-term MA20 has penetrated the long-term MA50 from above, suggesting a reversal into a downtrend. The RSI has retreated from the central line, confirming further down moves. The support at 53.30 is within the sight.

Trade suggestion

Sell Stop at 53.80, Take profit at 53.30, Stop loss at 54.00



DAX 30 Index


Germany’s Dax 30 index gapped up on Wednesday, liberating its price out of a consolidation at around 11830.00. The price action has crossed over a resistance at 11900.00 and is heading upwards to attempt the multi-month highs at around 12050.00. RSI is soaring, signaling further advances.

Trade suggestion

Buy Stop at 11950.00, Take profit at 12050.00, Stop loss at 11900.00

 

[CSFX.Support]

Best Buy Trade Idea by Capital Street FX

Best Buy Shares Rebound on Dividend Hike Plan but Remain Weak after Downbeat Report

Shares of Best Buy Co. Inc. pared their losses after having fallen as much as 8.6% in premarket trading on Wednesday. The company reported fiscal fourth-quarter revenue and a first-quarter forecast that missed analysts’ expectations.

Best Buy posted net income of $607.0 million, or $1.91 per share, up from $479.0 million, or $1.40 per share, for the same period last year. Adjusted for one-time items, EPS reached $1.95, beating the $1.67 economists’ consensus.

However, sales only hit $13.48 billion, down from $13.62 billion one year ago, and below the $13.62 billion forecast by analysts. Domestic same-store sales were reported to drop 0.9%, which contrasted with expectations calling for a rise of 0.4%.

For the current quarter, Best Buy expects revenue to come in the range of $8.2 billion and $8.3 billion while domestic same-store sales are forecast to decline from 1% to 2%.

Nevertheless, the company announced a share repurchase plan that accelerates from $1 billion over two years to $3 billion over two years and would raise its quarterly dividend 21% to 34 cents a share.

Trade suggestion

Sell Stop at 42.00, Take profit 40.00, Stop loss at 43.00

 

[CSFX.Support]

USDJPY Trade Idea by Capital Street FX

Yen Loses Ground Against Dollar on Rising Speculation about March Rate Increase

Japanese yen stumbled on Wednesday, falling to the lowest level in a week versus its American counterpart following hawkish comments from U.S. Federal Reserve policymakers overnight.

The pair USDJPY soared around 0.7% to as high as 113.530 – the highest level since February 22nd after a handful of Fed officials late Tuesday fueled speculations for a March U.S. rate hike.

While New York Fed President William Dudley said that the case for tightening monetary policy “has become a lot more compelling”, San Francisco Fed President John Williams stated that a rate increase next month was very much on the table given full employment and accelerating inflation.

According to CME Group’s Fed Watch Tool, traders saw a nearly 62% chance the U.S. central bank would raise its rate at a mid-March meeting.

Trade suggestion

Buy Stop at 113.600, Take profit 114.000, Stop loss at 113.400

 

[CSFX.Support]

AUD/JPY signal by Capital Street FX

From GMT 11:10 01/03/2017
Till GMT 21:00 01/03/2017

Buy at 87.100
Take profit at 87.500
Stop loss at 86.900

 

[CSFX.Support]

Daily Report on March 02, 2017 by Capital Street FX

Daily Report on March 02, 2017



Asian shares rally on Thursday, fueled by U.S. indexes having set fresh records on signs growth is firming worldwide. Japanese equities were among top leaders, soaring 0.9 percent to the highest level since December 2015. Australia’s S&P/ASX 200 Index and New Zealand’s S&P/NZX 50 Index added 1.1 percent and 0.4 percent, respectively. Meanwhile, Chinese stock markets were also on a rise with Hong Kong’s Hang Seng index topping 24,000-point threshold.

The dollar held on gains after Federal Reserve Governor Lael Brainard echoed her colleagues’ hawkish comments on the monetary policy. In a speech at Harvard University on Wednesday, Brainard, who is consider as one of the Fed biggest skeptics about the strength of the U.S. economy, said “We are closing in on full employment, inflation is moving gradually toward our target, foreign growth is on more solid footing and risks to the outlook are as close to balance as they have been in some time.”

Speculation about a U.S. rate hike in a FOMC meeting in mid-March was also spurred by data showed that U.S. manufacturing expanded more than expected in February. According to the Institute of Supply Management, last month’s purchasing manager's index jumped to 57.7, the highest since December 2014. Boosted by a dramatically high-pace increase in new orders, the result beat economists' forecast for 56.2.

Crude oil futures continued to slide on Thursday, stretching its decline for a third consecutive session in Asian trading hours on Thursday. The U.S. Energy Information Administration on Wednesday reported a rise of 1.5 million barrels in domestic crude-oil supplies for the week ended February 24, in line with market expectations. The increase marked the eight straight weekly build, sending total crude inventories to a new record of 520.2 million barrels last week.



Technicals

USDJPY




Having been tracing a sharp rally, the pair USDJPY broke out of the 61.8% Fibonacci retracement and is attempting to retest a two-week high at 114.900 logged on February 15th. The uptrend seems to keep on strengthening, as indicated by soaring RSI and ADX indices.

Trade suggestion

Buy Stop at 114.300, Take profit at 114.900, Stop loss at 114.000



NZDUSD



NZDUSD once again fell below the support at 0.71300 and is heading downwards to the lowest level since January 17 recorded yesterday. While RSI index is pointing to the oversold zone, ADX is edging higher with a wide gap between the –DI and +DI lines, suggesting further declines.

Trade suggestion

Sell Stop at 0.71100, Take profit at 0.70500, Stop loss at 0.71400



Natural gas



Natural gas resumed its up moves following a period of consolidation. The price action crossed over both short-term and long-term MAs yesterday and may turn them into new dynamic support. RSI pulled back from the central line, signaling strengthening uptrend.

Trade suggestion

Buy Stop at 2.800, Take profit at 2.860, Stop loss at 2.770



EURNZD


EURNZD is struggling around the resistance at 1.48000 as buyers are facing a major handle. However, the pair has been supported by two moving averages hanging below the price action. In addition, both ADX and RSI are pointing upwards, indicating a strong bullish momentum.

Trade suggestion

Buy Stop at 1.48100, Take profit at 1.48600, Stop loss at 1.47900

 

[CSFX.Support]

Gold Trade Idea by Capital Street FX

Gold Drops to One-week Low on Rising U.S. Rate Hike Speculation

Gold futures prices resumed their decline on Thursday, on track to lose ground for a third straight session. The precious metal fell to the lowest level in more than one week, weighed down by rising expectations for a U.S. March rate increase.

Gold for April delivery dropped around 1 percent to trade below $1240.00 an ounce after Federal Reserve official Lael Brainard late Wednesday echoed her colleagues’ hawkish comments on the monetary policy. The greenback strengthened, sending the dollar index 0.4 percent higher to trade near its highest levels since Jan 4 at 102.0500.

While a strong dollar causes commodities priced in the currency less affordable for buyers using other monetary units, higher rates tend to diminish demand for non-yielding assets such as gold.

Trade suggestion

Sell Stop at 1237.00, Take profit 1231.00, Stop loss at 1240.00

 

[CSFX.Support]

Broadcom Trade Idea by Capital Street FX

Broadcom Reports Upbeat Q1 Earnings, Expecting Strong Outlook

Shares of Broadcom Ltd. rose more than 4% in the extended session on Wednesday after the company reported fiscal first-quarter earnings results that beat market forecasts.

The chipmaker posted adjusted quarterly earnings of $3.63 a share on adjusted revenue of $4.15 billion, topping expectations calling for 3.48 a share on revenue of $4.08 billion.

Broadcom expects adjusted second-quarter revenue to be in the range between $4.025 and $4.175 billion. If confirmed, it would beat Wall Street’s current estimate of $3.9 billion.

Trade suggestion

Buy Stop at 223.80, Take profit 225.00, Stop loss at 222.00