Daily Market Analysis by CapitalStreetFX

GBP/USD signal by Capital Street FX

From GMT 14:00 02/03/2017
Till GMT 21:00 02/03/2017

Sell at 1.22600
Take profit at 1.22000
Stop loss at 1.22900
 
Daily Report on March 03, 2017 by Capital Street FX

Daily Report on March 03, 2017



Global shares retreated on Friday after U.S equities turned lower as investors were cautious ahead of U.S. Federal Reserve President Janet Yellen’s address on the economic outlook in Chicago later in the day. While Japan’s Topix index lost 0.4 percent, shares in Australia, New Zealand, Hong Kong and South Korea all found them were trading in the red. European shares opened lower with all benchmarks gapped down.

According to data published by Destatis on Friday, Germany's retailers unexpectedly slumped at the start of the year. The European largest economy recorded retail sales in January dropped 0.8% from the previous month, taking account of seasonal swings and calendar effects. The figure contrasted with economists’ forecasts which had called for a gain of 0.2%.

Crude oil markets reversed on Friday, supported by a dollar that edged away from a multi-week high. Russia’s energy ministry data on Thursday showed the country’s February oil output was unchanged from January at 11.11 million barrels per day (bpd). In other words, output-cut amount remains at 100,000 bpd compared to October 2016 level and accounts for a third of what was pledged by Moscow under its agreement with the Organization of the Petroleum Exporting Countries (OPEC).

Elsewhere, Japan's core consumer prices was reported to advance for the first time in over a year in January. Government data pointed to an increase of 0.1% in January from a year ago, posting the first rise since December 2015. Although energy costs rose, a slump in household spending recapped the gain.



Technicals

GBPCHF


GBPCHF retested the support at 1.23900 again – the level that has contained the price for almost a month. The pair has been tracing the downtrend since February 24 under the pressure from two MAs moving above the price action. RSI is heading downwards, indicating a strong down trend.

Trade suggestion

Sell Stop at 1.23900, Take profit at 1.23500, Stop loss at 1.24100



GBPJPY


GBPUSD reversed lower after hitting the long-term MA50 again and one more time fell below the support at 140.000. The pair seems to be completing its double top pattern with the price attempting the neck level. The RSI index has moved past the 50 line, indicating an overwhelmingly bullish force in the market. The support at 139.000 is within the sight.

Trade suggestion

Sell Stop at 137.700, Take profit at 137.000, Stop loss at 138.000



GOLD


Gold broke out of the support at 1231.00 after hovering around this level in Friday’s early trade. As can be seen from the chart, the short-term MA20 has crossed over the long-term MA50 from above, confirming the downtrend. While ADX continued to soar, RSI has fallen into an oversold zone, signaling a correction.

Trade suggestion

Sell Stop at 1227.00, Take profit at 1220.00, Stop loss at 1230.00



EURO 50


Euro 50 gapped down on Friday, broke out of a trading range around the short-term 20-period moving average. Confirming the downtrend, RSI index fell below the central line. In the event of continual downtrend, the index may drop to as low as the level at 3350.00

Trade suggestion

Sell Stop at 3370.00, Take profit at 3350.00, Stop loss at 3380.00
 
Costco Trade Idea by Capital Street FX

Costco Wholesale Earnings Miss Forecasts, Membership Fees Increased

Shares of Costco Wholesale Corp. plummeted by more than 4 percent in late trading on Thursday after the company reported fiscal second-quarter results that missed market forecasts.

The retailer posted earnings of $515 million, or $1.17 a share in the three-month period to February, down from $546 million, or $1.24 a share, in the year-ago period. Net sales, however, were reported to advance by 6 percent to $29.13 billion, from $27.57 billion in the same period last year. Although comparable-store sales rose 3 percent last quarter, they still fell short of economists’ forecasts calling for a rise of 3.6 percent.

In addition to the quarterly earnings reports, Costco also announced that it will increase annual membership fees by $5 for U.S. and Canada individual, business, and business add-on members, which is expected to impact around 35 million members.

Trade suggestion

Sell Stop at 170.30, Take profit 169.00, Stop loss at 171.00
 
NZD/USD signal by Capital Street FX

From GMT 05:20 03/03/2017
Till GMT 21:00 03/03/2017

Sell at 70.300
Take profit at 69.900
Stop loss at 70.500
 
Daily Report on March 06, 2017 by Capital Street FX

Daily Report on March 06, 2017



Global shares were pulled lower on Monday, weighed by slumps in industrial metal markets and escalating geopolitical tensions. While Asian equities closed lower, declines in copper, zinc and aluminum weighed on miners, pushing down the Stoxx Europe 600 index.

Copper futures in both Shanghai and London stumbled on Monday on concerns over rising output in China. According to the chairman of China’s second-largest refiner of the metal, copper may close this year lower. In an interview in Beijing on Sunday, Jiangxi Copper Co. Chairman Li Baomin on Sunday said that copper price was poised to drop this year on the back of Chinese government announcing growth plan for 2017. He also added that his company will increase production to the maximum capacity of 1.36 million metric tons from about 1.2 million tons last year.

Japanese Yen strengthened versus most of its peers after Japan moved to the highest possible alert level in the wake of North Korea having fired four ballistic missiles into nearby waters. In the latest provocation from Kim Jong Un’s regime, three of the missiles fell into Japan’s exclusive economic zone. Japanese Prime Minister Shinzo Abe told lawmakers in Tokyo that the launches “clearly show that this is a new level of threat” from North Korea and added that the threat was getting closer to his nation’s waters and territory.

Crude oil prices traded lower on Monday, dragged down by an expansion in U.S. oil stockpiles and production and a strengthening dollar that has been spurred by rising possibility that U.S. Federal Reserve may raise rate as soon as later this month.

Data published by oil-field services company Baker Hughes Inc. late Friday showed the number of rigs drilling for oil in the U.S. rose by seven to 609 rigs last week. Meanwhile, the U.S. Energy Information Administration expects domestic oil output will reach 9 million barrels a day in 2017. If confirmed, the data will mark a rise of 100.000 barrels a day compared to the previous year.

On the other hand, markets are also bracing for an interest rate increase by the U.S. central bank on March 14-15th. A rate hike will strengthen the dollar and make dollar-nominated commodities including oil more expensive for foreign buyers, a scenario that often causes prices to fall.



Technicals

GBPUSD



GBPUSD reversed lower after its price action hit two resistances at the same time, which are the short-term 20-period moving average and a downtrend line that has connected lower highs for the last one month. RSI is heading downwards, confirming a strengthening bearish momentum.

Trade suggestion

Sell Stop at 1.22600, Take profit at 1.22200, Stop loss at 1.22800



AUDUSD



AUDUSD has breached the 23.6% Fibonacci retracement where it had to give up its bullish momentum to reverse lower last Friday. The pair resumed its uptrend after it fell as low as two MAs. The short-term MA20 has crossed over the long-term MA50 from below, confirming a reversal into an uptrend.

Trade suggestion

Buy Stop at 0.76100, Take profit at 0.76400, Stop loss at 0.75950



Coffee



Coffee prices extended its downward rally after reversing lower from two moving averages. The commodity breached below the 50.2% Fibonacci retracement and is facing a support at 142.20. RSI is heading downwards from the 50 lines, suggesting an overwhelmingly dominant bear force.

Trade suggestion

Sell Stop at 142.00, Take profit at 140.40, Stop loss at 142.50



USDMXN




USDMXN has broken below the support at 19.50000 after a period of consolidation above this level. Bearish force seems to get stronger, as indicated by a sliding RSI and a soaring ADX index. A widening gap between the –DI and +DI lines also signals further declines.

Trade suggestion

Sell Stop at 19.45000, Take profit at 19.20000, Stop loss at 19.60000
 
Natural Gas Trade Idea By Capital Street FX

Natural Gas Boosted Higher on Colder Weather Forecast and Potential Draw in U.S. Storage

U.S. natural gas futures gapped up on Monday, jumping to the highest level in more than two weeks thanks to cooler weather forecasts and expectations that U.S. natural gas storage will have drawn last week.

U.S. natural gas for April delivery soared more than 3 percent to as high as $2.925 per million British thermal units – the level not seen since February 17.

Updated weather forecast showed rain, snow, and cool temperatures will return to the northern and eastern U.S in the next one or two weeks. Cooler weather tends to boost demand for the heating fuel.

Meanwhile, economists expect U.S. weekly storage data due on Thursday will show a draw in a range between 53 and 64 billion cubic feet in the week ended March 3.

Trade suggestion

Call Stop at 2.925, Take profit 2.990, Stop loss at 2.900
 
Copper Trade Idea by Capital Street FX

Copper On a Slide as China’s Second-largest Refiner Looks to Raise Production

Copper futures in both Shanghai and London stumbled on Monday amid risk-off sentiment in broader markets and mounting speculations that a U.S. rate hike and elections in Europe curb demand.

According to the chairman of China’s second-largest refiner of the metal, copper may close this year lower. In an interview in Beijing on Sunday, Jiangxi Copper Co. Chairman Li Baomin on Sunday said that copper price was poised to drop this year on the back of Chinese government announcing growth plan for 2017.

Baomin also added that his company will increase production to the maximum capacity of 1.36 million metric tons from about 1.2 million tons last year.

Trade suggestion

Sell Stop at 2.6600, Take profit 2.6500, Stop loss at 2.6650
 
GBP/JPY signal by Capital Street FX

From GMT 07:40 06/03/2017
Till GMT 21:00 06/03/2017

Sell at 139.500
Take profit at 139.000
Stop loss at 139.750
 
Daily Report on March 07, 2017 by Capital Street FX

Daily Report on March 07, 2017



Asian shares were flat on Tuesday after Wall Street posted losses overnight. On Monday, U.S. equities dropped about 0.37% after U.S. President Donald Trump imposed a new ban on immigrant. After the first attempt was blocked in the courts, Trump signed a revised executive order, effective March 16, banning citizens from six Muslim-majority countries from travelling to the United States for 90 days. Compared to the first list, Iraq was removed.

The euro was stable after shedding 0.4% on Monday following news that Former Prime Minister Alain Juppe ruled out standing in the country’s presidential elections. The single currency has been driven by political developments of election campaigns in the Netherlands, France and Germany. The fact that Juppe won’t enter the race for the presidency will reduce the chances of anti-euro candidate Marine Le Pen being eliminated in the first round of voting.

Oil prices were little changed for a third session on Tuesday, with investors waiting for economic data later in the week, including import and export data from China and U.S. crude oil inventories for last week on Wednesday. In its five-year "Oil 2017" market analysis, the International Energy Agency (IEA) forecast U.S. shale output to grow at about 1.4 million barrels per day by 2022.

Reserve Bank of Australia on Tuesday kept interest rates unchanged at 1.5 percent. In the RBA statement published at the same time with the rate announcement, Governor Philip Lowe said “Conditions in the housing market vary considerably around the country. In some markets, conditions are strong and prices are rising briskly,” Lowe also added that “Borrowing for housing by investors has picked up over recent months.”



Technicals

GBPAUD


GBPAUD slumped after moving sideways around the level at 1.61300. The pair has officially broken below the short-term 20-period moving average and is struggling with a support at 1.60500. RSI is pointing downwards, suggesting further declines.

Trade suggestion

Sell Stop at 1.60500, Take profit at 1.60000, Stop loss at 1.60700



EURAUD



EURAUD stumbled from nearly one-month high at 1.40000 to trade nearly 1.38700. The price action has crossed over the short-term MA20 and is heading downwards to a support at 1.38000. While RSI has moved past the 50 line, the –DI line has penetrated the +DI line from below, indicating a strong bearish force.

Trade suggestion

Sell Stop at 1.38700, Take profit at 1.38000, Stop loss at 1.39000



Sugar



Sugar resumed its downtrend after a correction that brought the commodity to as high as 19.83. The price, however, headed back down to struggling around the support at 19.13. With RSI on a decline, sugar price may fall lower to test a major support at 38.2% Fibonacci retracement.

Trade suggestion

Sell Stop at 19.10, Take profit at 18.75, Stop loss at 19.30



SILVER



Silver reversed lower under pressure exerted by two moving averages that are hanging above the price action. The RSI index has almost penetrated the oversold zone, suggesting an overwhelming dominating bearish momentum in the market. A support at 17.550 is within the sight.

Trade suggestion

Sell Stop at 17.700, Take profit at 17.550, Stop loss at 17.750
 
Pound Plunges to Seven-week Low Ahead Britain’s Parliament Vote

Pound Plunges to Seven-week Low Ahead Britain’s Parliament Vote

British Pound slumped to a seven-week low against the dollar on Tuesday as a strengthening dollar pushed the pair lower ahead of a second vote in Britain’s upper house of parliament which may give parliamentarians a greater say over the terms of Britain’s exit from the EU.

The pound dropped more than 3% to trade below $1.2200 – the lowest level since mid-January. Prime Minister Theresa May is to trigger the Article 50 EU exit mechanism later this month and her peers in the chamber will vote in an attempt to require the government to give Parliament a “meaningful vote” on the eventual deal with the bloc.

Meanwhile, the dollar has been on a rise versus most of its rivals due to rising expectations for a rise in U.S. interest rates this month.

Trade suggestion

Sell Stop at 1.21900, Take profit 1.21500, Stop loss at 1.22100
 
Trade signals by Capital Street FX

AUD/JPY signal by Capital Street FX

From GMT 03:00 07/03/2017
Till GMT 21:00 07/03/2017

Sell at 86.600
Take profit at 87.000
Stop loss at 86.400

AUD/NZD signal by Capital Street FX

From GMT 17:30 07/03/2017
Till GMT 21:00 07/03/2017

Buy at 1.08800
Take profit at 1.09400
Stop loss at 1.08500
 
Daily Report on March 08, 2017 by Capital Street FX

Daily Report on March 08, 2017



Asian shares retreated on Wednesday with MSCI's broadest index of Asia-Pacific shares outside Japan eased 0.1 percent in early trade. While Japan’s shares and Australian equities edged lower, Chinese stocks were on a rise. Particularly, Japan’s Topix index dropped 0.4 percent and the S&P/ASX 200 Index lost 0.2 percent.

Meanwhile, the Hang Seng index added 0.5 percent and Chinese shares traded in Hong Kong jumped 0.8 percent after a report showed imports surged in February. According to the General Administration of Customs, China's exports denominated in yuan rose 4.2 percent in February from a year earlier, but imported soared dramatically by 44.7 percent, leaving a trade deficit of 60.4 billion yuan.

Crude oil futures edged lower on Wednesday after plunged on Tuesday on the back of an industry report that showed U.S. crude inventories increased last week. The American Petroleum Institute on Tuesday said that U.S. supplies rose 11.6 million barrels last week, much higher than economists’ forecast for a rise of 1.1 million barrels. Energy Information Administration data will be published later on the day.

U.S. crude shale output is expected to keep rising and may reach a record next year as domestic drillers jumped back in the market in the wake of higher prices. According to EIA’s monthly Short-Term Energy Outlook released on Tuesday, U.S. production will surge to 9.21 million barrels a day in 2017 from 8.98 million projected in February. The agency also stated that output is anticipated to increase to an average 9.73 million barrels a day for 2018, and may top 10 million barrels a day in December 2018.



Technicals

EURJPY



EURJPY fell lower following a period of moving sideways below the resistance at 23.6% Fibonacci retracement. The pair also breached the support at 120.300 and officially sent the price into the bearish territory. With declining RSI and soaring ADX index, the pair is heading downwards to another support at 119.700.

Trade suggestion

Sell Stop at 120.100, Take profit at 119.700, Stop loss at 120.300



GBPJPY


GBPJPY has been on a decline for four days in a row, under downwards pressure from two MAs which are hanging above the price action. The pair broke below the support at 139.000 with strong bearish momentum, as indicated by sliding RSI index and soaring ADX index.

Trade suggestion

Sell Stop at 138.700, Take profit at 138.000, Stop loss at 139.000



BRENT


Brent crude has been trading in a downward slopping trend with lower highs and lower lows formed along the trading channel. The commodity has broken out of a support at 55.60 and is attempting another key support at 55.00 – which forced the price to reverse higher last Friday.

Trade suggestion

Sell Stop at 55.50, Take profit at 55.00, Stop loss at 55.75



Natural Gas


Natural Gas pulled back with the support from two moving averages hanging below the price action. The commodity market rebounded to the bullish territory, as indicated by RSI index. The price is struggling with the resistance at 2.860. In the event of continual uptrend, the price may retest the handle at 2.945.

Trade suggestion

Buy Stop at 2.870, Take profit at 2.945, Stop loss at 2.850
 
Crude Trade Idea by Capital Street FX

Crude Oil Drops After API Report and EIA’s Energy Outlook

Crude oil futures edged lower on Wednesday after plunged on Tuesday on the back of an industry report that showed U.S. crude inventories increased last week.

The American Petroleum Institute on Tuesday said that U.S. supplies rose 11.6 million barrels last week, much higher than economists’ forecast for a rise of 1.1 million barrels. Energy Information Administration data will be published later on the day.

U.S. crude shale output is expected to keep rising and may reach a record next year as domestic drillers jumped back in the market in the wake of higher prices. According to EIA’s monthly Short-Term Energy Outlook released on Tuesday, U.S. production will surge to 9.21 million barrels a day in 2017 from 8.98 million projected in February.

The agency also stated that output is anticipated to increase to an average 9.73 million barrels a day for 2018, and may top 10 million barrels a day in December 2018.

Trade suggestion

Sell Stop at 52.75, Take profit 52.30, Stop loss at 52.90
 
Trade signals by Capital Street FX

GBP/CHF signal by Capital Street FX
From GMT 09:45 08/03/2017
Till GMT 21:00 08/03/2017
Sell at 1.23200
Take profit at 1.22800
Stop loss at 1.23400

GBP/AUD signal by Capital Street FX

From GMT 16:30 08/03/2017
Till GMT 21:00 08/03/2017
Sell at 1.61000
Take profit at 1.60500
Stop loss at 1.61250
 
Daily Report on March 09, 2017 by Capital Street FX

Daily Report on March 09, 2017



Tracing declines in Asian trading session, European shares opened lower, weighed down by energy companies and utilities. The Stoxx Europe 600 index lost 0.2 percent in early trade while Hang Seng China Enterprises Index in Hong Kong led losses in Asia, falling the most since December 15th, 2016. Supported by a softening Yen, Japanese equities were lone gainers.

Gold fell to the lowest in five weeks on Thursday to trade below $1205.00 an ounce in early European trade – the level not seen since early February on the back of the greenback rallying after Payroll processor ADP reported that the U.S. private sector added 298,000 jobs in February. The result was well above forecasts for an increase of 190,000 and also the largest increase in private sector hiring since March 2006. Furthermore, January’s figure was revised up to show an increase of 261,000 jobs from the previous report of 246,000.

Markets were waiting for government employment report for February due on Friday. A strong reading would cement speculations of a rate increase at the Fed’s March 14-15 meeting and spur the dollar higher. A stronger currency tends to make dollar-nominated assets like gold less affordable for buyers holding other currencies while higher rate causes gold less appealing as the precious metal offers no yield.

Elsewhere, China National Statistics Bureau on Thursday reported the country’s producer price inflation accelerated to its fastest pace in nearly nine years in February while consumer inflation, by contrast, cooled more than expected to its slowest pace since January 2015. Spurred by a rally in prices of steel and other raw materials, the producer price index (PPI) jumped 7.8 percent in February from a year earlier, beating analysts’ forecast of a 7.7 percent gain.

However, China's consumer inflation rate slowed to 0.8 percent last month due to a decline in food prices following the long Lunar New Year celebrations. Economists had expected the CPI to rise 1.7 percent after an acceleration of 2.5 percent in January.



Technicals

USDJPY



USDJPY resumed its rally after a short correction on Monday. The pair is struggling at a resistance at 114.900 and appears to continue heading upwards with the support of two MAs hanging below the price action. Both RSI and ADX indices are pointing up, suggesting further advances.

Trade suggestion

Buy Stop at 114.900, Take profit at 115.300, Stop loss at 114.700



AUDUSD


AUDUSD has breached the support at 0.75000, extending its slide to a second day and sending the price to the lowest level since January 17. As the market has entered the oversold zone, the downtrend may be short-lived. The support at 38.2% level is within the sight.

Trade suggestion

Sell Stop at 0.74900, Take profit at 0.74500, Stop loss at 0.75100



Coffee



Coffee prices reversed lower at the resistance at 142.20 with the bullish force being depressed by the short-term MA20 which was hanging above the price action. RSI also pulled back to head lower, suggesting a stronger bearish momentum. A support at 139.40 is expected to be retested.

Trade suggestion

Sell Stop at 141.00, Take profit at 139.40, Stop loss at 141.70



FTSE 100




FTSE 100 index has crossed over the long-term MA50, which indicates a strong downtrend. As well as the RSI index move past the 50 line, the index is expected to fall lower as the bear is dominating in the market. In the event of continual downtrend, the index may fall as low as 7260.00.

Trade suggestion

Sell Stop at 7290.00, Take profit at 7260.00, Stop loss at 7305.00
 
Natural Gas Trade Idea By Capital Street FX

Natural Gas Surges High as U.S. Inventories Fall Larger-than-expected

U.S. natural gas rose to a nearly three-week high on Thursday after a weekly report showed that U.S. domestic supplies of the commodity fell sharper than expected.

April natural gas surged more than 2.1% to $2.974 per million British thermal units as data from the U.S. Energy Information Administration indicated that inventories dropped by 68 billion cubic feet for the week ended March 3, which was well above economists’ expectations calling for a decline of 58 billion cubic feet.

According to government data, total stocks now stand at 2.295 trillion cubic feet, down 192 billion cubic feet from a year ago, but 363 billion cubic feet above the five-year average.

Trade suggestion

Buy Stop at 2.980, Take profit 3.040, Stop loss at 2.950
 
Gold Trade Idea by Capital Street FX

Gold Tumbles As ADP Data Strengthens Bets on U.S. Rate Hike Next Week

Gold fell to the lowest in five weeks on Thursday as the dollar held on gains versus most of its peers after a strong hiring data from payroll processor Automatic Data Processing overnight which helped raise the bets on a Federal Reserve rate hike next week.

Gold traded below $1205.00 an ounce in early European trade – the level not seen since early February on the back of the greenback rallying after Payroll processor ADP reported that the U.S. private sector added 298,000 jobs in February. The result was well above forecasts for an increase of 190,000 and also the largest increase in private sector hiring since March 2006. Furthermore, January’s figure was revised up to show an increase of 261,000 jobs from the previous report of 246,000.

Markets were waiting for government employment report for February due on Friday. A strong reading would cement speculations of a rate increase at the Fed’s March 14-15 meeting and spur the dollar higher. A stronger currency tends to make dollar-nominated assets like gold less affordable for buyers holding other currencies while higher rate causes gold less appealing as the precious metal offers no yield.

Trade suggestion

Sell Stop at 1204.50, Take profit 1200.00, Stop loss at 1207.00
 
EUR/NZD signal by Capital Street FX

From GMT 05:30 09/03/2017
Till GMT 21:00 09/03/2017

at 1.52800
Take profit at 1.53400
Stop loss at 1.52500
 
Daily Report on March 10, 2017 by Capital Street FX

Daily Report on March 10, 2017



Global shares rose on Friday with MSCI's broadest index of Asia-Pacific shares outside Japan edging 0.5 percent higher. Tracing a modest bounce in Wall Street overnight, Hong Kong’s Hang Seng aded 0.2 percent, Singapore’s Straits Times Index jumped 0.5 percent while Japan’s Topix index surged 1.2 percent, the most in a week.

Meanwhile, shares in South Korea climbed 0.3 percent and the won also firmed slightly after the country's Constitutional Court removed President Park Geun-hye from office on Friday over a graft scandal involving the country's conglomerates at a time of rising tensions with North Korea and China.

The dollar held on gains on Friday ahead of the monthly report on labor market. The non-farm payrolls are expected to show a growth of 200,000 workers in February. Previously, also a report on Thursday that showed the number of Americans applying for unemployment benefits rose to 243,000 last week, pointing to a tightening labor market. The dollar index against a basket of major currencies was up 0.1 percent at 101.900.

U.S. crude prices fluctuated on Friday, struggling to find direction after having fallen below $50 per barrel on the day before as concerns over a global glut overshadowed bullish sentiment from output cuts by major exporters. West Texas Immediate was flat in early European trade, on track for 7 percent decline this week – the biggest weekly drop since early November. The prices have been under pressure from rising production in the U.S. where producers are drilling more wells and pumping more oil on the back of rising oil prices.



Technicals

USDJPY



USDJPY pulled back from a support at 115.300 after having a breather at nearly two-month highs at 115.488. The RSI is hovering around the 70 line, which indicates that the market has entered the overbought zone. However, ADX keeps soaring, suggesting a strong bullish trend currently.

Trade suggestion

Buy Stop at 115.500, Take profit at 116.000, Stop loss at 115.200



EURJPY


EURJPY reached its peak since February 01st, sending the market into the oversold territory. Nonetheless, the bullish momentum seems not to have any intention to jump on a break, as indicated by ADX that keeps soaring. The resistance at 123.000 is expected to be tested.

Trade suggestion

Buy Stop at 122.500, Take profit at 123.000, Stop loss at 122.200



USDCHF



USDCHF has been moving sideways to higher with the support from the long-term 50-period moving average. RSI has moved past the 50 line, suggesting potentially upcoming up moves.

Trade suggestion

Buy Stop at 1.01300, Take profit at 1.01600, Stop loss at 1.01150



BRENT



U.K. Brent crude has been fallen into a consolidation after plunging to the lowest level since November 30th, 2016. Long lower shadows of the last two candles show that the price is inclined to edge lower but buyers jumped in every time to buy up. However, the market has been in the bearish territory. The support at 51.60 is within the sight.

Trade suggestion

Sell Stop at 52.30, Take profit at 51.60, Stop loss at 52.60
 
Oil Trade Idea by Capital Street FX

U.S. Producers Ramp Up Shale Production, Oil Plunges to Three-month Lows

U.S. crude prices fluctuated on Friday, struggling to find direction after having fallen below $50 per barrel on the day before as concerns over a global glut overshadowed bullish sentiment from output cuts by major exporters.

West Texas Immediate was flat in early European trade, on track for 7 percent decline this week – the biggest weekly drop since early November. The prices have been under pressure from rising production in the U.S. where producers are drilling more wells and pumping more oil on the back of rising oil prices.

Besides the fact that U.S. crude inventories rose by 8.2 million barrels last week to a record 528.4 million barrels, U.S. producers are putting pressure on prices by planning to expand crude production in North Dakota, Oklahoma and other shale regions.

The U.S. Energy Information Administration forecast U.S. oil output to increase to an average of 9.7 million barrels per day in 2018.

Trade suggestion

Sell Stop at 49.50, Take profit 48.90, Stop loss at 49.80
 
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