Daily Market Analysis by CapitalStreetFX

[CSFX.Support]

GBP/AUD signal by Capital Street FX

From GMT 05:30 06/04/2017
Till GMT 21:00 06/04/2017

Buy at 1.65700
Take profit at 1.66300
Stop loss at 1.65400

 

[CSFX.Support]

Daily Report on April 07, 2017 by Capital Street FX

Daily Report on April 07, 2017



Global shares inched lower while Japanese Yen and gold prices surged on Friday, as investors flocked to the perceived haven asset on the back of U.S. military airstrikes against Syria. European stocks plunged by 0.3 percent, weighed down by weakness in mining stocks while U.S. stock futures looked set to gapped down after having fallen sharply in the immediate aftermath of the strikes.

U.S President Donald Trump said he had ordered nearly-60-Tomahawk-cruise-missiles against a Syrian air base at dawn local time Friday. Trump said the U.S. military operation was a response to a “barbaric” chemical weapons attack in Syria that left tens of civilians dead, declaring he acted in America's "national security interest" against Syrian President Bashar al-Assad.

The U.S. March jobs report is due to be published later on the day and is expected to cap the strongest quarterly growth since 2012. Analysts predict non-farm payrolls will increase by 180,000 last month, with some forecasts revised higher after strong private payroll numbers. Also of interest will be average earnings, set to rise 0.2 percent month-on-month. Jobless rate is forecast to remain unchanged.

Data published by the U.K. Office for National Statistics on Friday showed that domestic industrial output shrank more than expected in February. Manufacturing output was reported to decline by 0.7% in February--much more than expected by analysts who predicted a fall of 0.1%.



Technicals

AUDNZD


AUDNZD has been struggling with a support at 1.08000 since Asian trading hours. This is a major support as it also forced the pair to reverse higher on March 27th. However, the pair is likely to inch lower this time with two MAs hanging above the price action with a market immersing in the bearish zone.

Trade suggestion

Sell Stop at 1.07900, Take profit at 1.07550, Stop loss at 1.08200



GOLD


After soaring strongly late Thursday, gold has fallen in a period of moving sideways, as can be seen from the ADX index which has dropped below 20, which indicates no clear trend in the market. However, RSI is edging higher, signaling a dominating bullish force which may send the pair higher.

Trade suggestion

Buy Stop at 1265.00, Take profit at 1270.00, Stop loss at 1262.50



BRENT



Brent crude prices rebounded at a support at 55.00 and are likely to penetrate the short-term MA20 from below after shortly falling below this dynamic support. The market remained in the bullish territory, suggesting further advances. The resistance at 56.05 is within the sight.

Trade suggestion

Buy Stop at 55.25, Take profit at 56.05, Stop loss at 54.85



DAX 30 Index


DAX 30 index failed to cross over the short-term MA20 at around 12190.00 and reversed lower. The pair headed lower, on course to test a firm support at 12120.00. The stock benchmark is expected to inch lower as the market has still dominated by the bearish force, as indicated by RSI which is pointing downwards.

Trade suggestion

Sell Stop at 12160.00, Take profit at 12120.00, Stop loss at 12180.00

 

[CSFX.Support]

USD/CAD signal by Capital Street FX

From GMT 06:00 07/04/2017
Till GMT 21:00 07/04/2017

Sell at 1.34000
Take profit at 1.33600
Stop loss at 1.34200

 

[CSFX.Support]

Daily Report on April 10, 2017 by Capital Street FX

Daily Report on April 10, 2017



Most Asian stock markets inched higher on Monday, especially Japanese equities which were pushed higher by a weaker Yen. The Topix index climbed by 0.7 percent, advancing for a second day, and Australia’s S&P/ASX 200 Index jumped 0.9 percent.

Japanese Yen dropped to the lowest level in one week versus the dollar on Monday after Bank of Japan Governor Haruhiko Kuroda stated that Japan consumer inflation is going to move around zero percent for time being and the central bank would ramp up aggressive asset purchases and maintain its massive monetary stimulus until inflation is stably above its 2 percent target.

The dollar started the new week at three-week highs against a currency basket on Monday, shrugging off concerns over a worse-than-expected Non-farm Payrolls released last Friday as a key U.S. Federal Reserve official reinforced the central bank's commitment to interest rate hikes. Investors remained focused on the Federal Reserve’s plans to tighten monetary policy after New York Fed President William Dudley on Friday said that plans to trim the Fed’s balance sheet later this year would prompt only a "little pause" in its rate hike plans.

Crude prices edged higher on Monday, spurred by strong demand and uncertainty over the conflict in Syria. According to market sources, India has overtook Japan as the world's third biggest oil importer, witnessing its March oil demand grow by 4.9 percent from the same month a year ago.

However, the rally may be obstructed due to another increase in U.S. oil drilling. U.S. oil producers were reported to add more oil rigs for the 12th straight week and send the total rigs to 672 - the highest since August 2015. Beyond the United States, other producers are also benefiting from OPEC's supply cuts and tighter market. According to Brazil’s government data, the country's oil exports have soared 65 percent since February 2016, to a record of more than 1.46 million bpd.



Technicals

AUDCAD


AUDCAD has been moving sideways above the level 1.00300 since last Friday but looked set to resume its downtrend and inch lower with downward pressure from two MAs hanging above the price action. The pair may slide to as low as 38.2% Fibonacci level. While RSI is heading lower, ADX is soaring, suggesting stronger downtrend.

Trade suggestion

Sell Stop at 1.00300, Take profit at 0.99900, Stop loss at 1.00500



EURCAD


EURCAD has fallen below a major support at 1.42000 but the prices are still lingering below this handle. Two MAs are hanging above the price action, depressing the price lower. A support at 50.0% Fibonacci retracement is expected to be tested.

Trade suggestion

Sell Stop at 1.41800, Take profit at 1.41200, Stop loss at 1.42100



SILVER


SILVER reversed lower after having failed to surpass a firm resistance at 18.000. The metal dropped steeply on Friday to the lowest level since March 27th and consequently fell into a correction. However, the market which remains in the bearish zone may takes the price lower. A support at 17.740 is within the sight.

Trade suggestion

Sell Stop at 17.900, Take profit at 17.740, Stop loss at 17.980



WTI


U.S. crude prices have been supported by the short-term MA20. Indeed, the commodity reversed higher after hitting this dynamic support last Friday and is heading higher in an attempt to test a resistance at 53.30. Both RSI and ADX are soaring higher while the gap between +DI and –DI are widening, suggesting further upbeat moves.

Trade suggestion

Buy Stop at 52.60, Take profit at 53.30, Stop loss at 52.30

 

[CSFX.Support]

USDJPY Trade Idea by Capital Street FX

Japanese Yen Hits One-week Low Versus Dollar After Remarks by BOJ Governor Kuroda

Japanese Yen dropped to the lowest level in one week versus the dollar on Monday after Bank of Japan Governor Haruhiko Kuroda stated that the central bank would maintain its QQE program with yield curve control for as long as needed to achieve 2 percent inflation in stable manner.

The dollar started the new week at three-week highs against a currency basket on Monday, shrugging off concerns over a worse-than-expected Non-farm Payrolls released last Friday as a key U.S. Federal Reserve official reinforced the central bank’s commitment to interest rate hikes.

Investors remained focused on the Federal Reserve’s plans to tighten monetary policy after New York Fed President William Dudley on Friday said that plans to trim the Fed’s balance sheet later this year would prompt only a “little pause” in its rate hike plans.

The pair USDJPY hit the highest level since April 03, spurred by comments from BOJ Governor Kuroda which reiterated Japan consumer inflation is going to move around zero percent for time being and the central bank would ramp up aggressive asset purchases and maintain its massive monetary stimulus until inflation is stably above its 2 percent target.

Trade suggestion

Buy Stop at 111.500, Take profit 112.000, Stop loss at 111.300

 

[CSFX.Support]

AUD/JPY signal by Capital Street FX

From GMT 07:30 10/04/2017
Till GMT 21:00 10/04/2017

Sell at 83.200
Take profit at 82.600
Stop loss at 83.500

 

[CSFX.Support]

Daily Report on April 11, 2017 by Capital Street FX

Daily Report on April 11, 2017



Asian shares declined on Tuesday amidst mounting concerns over escalating political tinderbox in the Middle East and the Korean Peninsula. MSCI's broadest index of Asia-Pacific shares outside Japan lost 0.4 percent with Chinese stocks falling about 0.1 percent. Hong Kong shares slid 0.7 percent while Tokyo's Nikkei slipped 0.5 percent, dragged lower by a stronger yen. The declines were also led by losses in shares of Toshiba Corp., which slumped 4.3 percent.

The White House press secretary on Monday warned Syria to stop using barrel bombs against civilians, suggesting President Donald Trump may be open to authorizing additional strikes on Syria if the use of chemical weapons continues in the country. South Korean assets have sold off amid speculation the U.S. could make a similarly aggressive pivot when it comes to Pyongyang.

A U.S. Navy strike group was reported to head toward the western Pacific Ocean near the Korean peninsula as a show of force. Additionally, on Monday, China and South Korea agreed to tougher sanctions on North Korea if it carries out nuclear or long-range missile tests.

Crude prices reversed lower on Tuesday after having been pushed higher in the previous session thanks to shutdown at Libya's largest oilfield over the weekend and the U.S. strikes against Syria. According to market sources, Libya's Sharara oilfield, which had only just returned to production, was shut on Sunday after a group blocked a pipeline linking it to an oil terminal.



Technicals

USDCHF


USDCHF has been struggling around a support at 1.00700 after having fallen from as high as 1.00900. The pair failed to sustain its upbeat moves after having crossed a couple of MAs. The short-term MA20 has penetrated the long-term MA50 from above, suggesting a reversal into a downtrend. RSI heading downwards helps confirm further declines.

Trade suggestion

Sell Stop at 1.00700, Take profit at 1.00300, Stop loss at 1.00900



CADJPY


CADJPY has broken out of a downtrend that had formed lower highs since March 10th. As can be seen from the price chart, the pair has been supported by the short-term MA20 and may edge higher as the market has remained in the bullish zone. A resistance at 83.700 is within the sight.

Trade suggestion

Buy Stop at 83.200, Take profit at 83.700, Stop loss at 83.000



WTI



U.S. crude prices have been surging higher with upward support from two MAs lingering below the price action. The pair seems to reverse higher after a short break of correction. RSI remained at high level, suggesting a strong bullish market. The commodity is expected to reach a resistance at 54.00

Trade suggestion

Buy Stop at 53.20, Take profit at 54.00, Stop loss at 52.80



FTSE 100



FTSE100 index has been supported by a couple of MAs. The stock benchmark has broken out of a period of moving sideways around the support at 7350.00 and is heading higher to attempt a major resistance at 7400.00. RSI is pointing upwards, signaling further uptrend.

Trade suggestion

Buy Stop at 7380.00, Take profit at 7400.00, Stop loss at 7370.00

 

[CSFX.Support]

Trade signals by Capital Street FX

AUD/USD signal by Capital Street FX
From GMT 04:20 11/04/2017
Till GMT 21:00 11/04/2017
Sell at 0.74900
Take profit at 0.74500
Stop loss at 0.75100

EUR/GBP signal by Capital Street FX
From GMT 19:00 11/04/2017
Till GMT 21:00 12/04/2017
Sell at 0.84900
Take profit at 0.84500
Stop loss at 0.85100

 

[CSFX.Support]

Daily Report on April 12, 2017 by Capital Street FX

Daily Report on April 12, 2017

European shares advanced on Wednesday, spurred by shares of Daimler AG which reported that the company’s pretax profit in the first three months comfortably outpaced market forecast by soaring 87%. However, the gains were constrained partly due to rising geopolitical worries. North Korea’s foreign ministry on Tuesday said that it was ready for “war” if the U.S. continued further military moves like the one seen Sunday, when it sent a Navy strike group to the region.

Crude oil futures rose on Wednesday, on course for a seventh session heading higher. If confirmed, this would be their longest streak of gains since August 2016 when it recorded a six-day bull-run. The Wall Street Journal on Tuesday reported that Saudi Arabia told members of the Organization of the Petroleum Exporting Countries and other producers that it wants to extend the group’s agreement to cut crude production for another six months when OPEC meets in May.

The industry-funded American Petroleum Institute said U.S. crude stockpiles slipped 1.3 million barrels last week. Later on Wednesday, the EIA will reveal its own data while OPEC will publish its monthly oil report in Vienna.

The Chinese National Bureau of Statistics, in Asian trading session, reported the country’s producer price inflation cooled for the first time in seven months in March. China's producer price index (PPI) was reported to rise 7.6 percent in March from a year earlier, roughly in line with expectations.

Last month’s figure eased from 7.8 percent in February, which marked a nine-year high, due to the fact that as iron ore and coal prices tumbled. Chinese steel production is outweighing demand and may cause a glut to the metal market later this year.



Technicals

AUDUSD


As can be seen from the chart, the pair AUDUSD has been depressed by the short-term MA20 which sent the prices below a support at 0.74900. With a market dominated by bearish force, the price is expected to dip lower, probably to as low as the level at 38.2% Fibonacci level.

Trade suggestion

Sell Stop at 0.74800, Take profit at 0.74500, Stop loss at 0.74950



EURNZD


EURNZD has been on an uptrend since it reversed higher from two MAs. The RSI index has been marching while ADX index has also been soaring with a widening gap between the +DI and –DI lines. The pair is forecast to edge higher to as high as a resistance at 1.53700.

Trade suggestion

Buy Stop at 1.53200, Take profit at 1.53700, Stop loss at 1.53000



SUGAR


Sugar has been rising with support from two MAs lingering below the price action and a support at 16.60. As indicated by RSI index, the market remains in the bullish zone, which signals further advances. A resistance at 50.0% Fibonacci retracement is within the sight.

Trade suggestion

Buy Stop at 16.90, Take profit at 17.15, Stop loss at 16.80



DAX


DAX index failed to break through a couple of MAs. The short-term MA20 has penetrated the long-term MA50 from above, suggesting a reversal into a downtrend. RSI remained moving below the central line, indicating a strong bearish momentum. A support at 12050.00 is within the sight.

Trade suggestion

Sell Stop at 12140.00, Take profit at 12050.00, Stop loss at 12180.00

 

[CSFX.Support]

Daimler Trade Idea by Capital Street FX

Shares of Daimler Soar High after Pretax Profit Said To Surge 87% Last Quarter

Shares of Daimler AG topped Germany’s stock benchmark DAX on Wednesday after the maker of Mercedes-Benz cars reported that pretax profit in the first three months of 2017 comfortably outpaced market forecast by soaring 87%.

In the three-month period to March 31st, Daimler’s earnings before interest and taxes jumped to EUR4 billion ($4.2 billion) from EUR2.15 billion recorded in the year earlier. The rally was spurred by higher earnings in the Mercedes-Benz car division as well as in its other main businesses.

While earnings at Mercedes-Benz cars rose 60% to EUR2.23 billion, pretax profit from Daimler’s truck division rose nearly 30% to EUR668 million.

Full quarterly results of the company will be posted later this month on April 26.

Trade suggestion

Buy Stop at 67.35, Take profit 68.00, Stop loss at 67.00

 

[CSFX.Support]

GBP/USD signal by Capital Street FX

From GMT 06:00 12/04/2017
Till GMT 21:00 12/04/2017

Buy at 1.25000
Take profit at 1.25500
Stop loss at 1.24750

 

[CSFX.Support]

S&P 500 Trade Idea by Capital Street FX

U.S. Shares Edge Lower Amid Heightened Geopolitical Tensions

U.S. stocks declined on Wednesday with all three share benchmarks trading lower, weighed down by caution taken by investors amidst persistent geopolitical risks.

The S&P 500 index maintained its recent downward bias, losing nearly 0.5 percent to trade as low as 2342.00. Eight of the 11 main sectors were in negative territory, led by losses in materials, industrials and financials which dropped about 1 percent each.

Geopolitical tensions have heightened after President Donald Trump pressed China to act on the threats coming out of North Korea. The U.S. President stated that his country would take unilateral action if Beijing doesn’t act. Additionally, the White House has accused Russia of trying to cover up the suspected chemical weapon attack in Syria, calling Russia to abandon its support for Syrian President Bashar al-Assad.

Trade suggestion

Sell Stop at 2340.00, Take profit 2335.00, Stop loss at 2342.00

 

[CSFX.Support]

Daily Report on April 13, 2017 by Capital Street FX

Daily Report on April 13, 2017



Most Asian stocks fell on Thursday, led by Japanese shares which retreated for a third day after the yen rose to the strongest in almost five months against dollar. The Topix index dropped 1.1 percent, heading toward the lowest closing level since November. Sydney’s S&P/ASX 200 reversed lower, falling for the first time in five days.

The Australian dollar rose strongly versus its American counterpart in Asian trading hours on Thursday, soaring as high as 0.75700 – the highest level in more than a week as ABS’s report showed domestic employment increased by a massive 60,900 last month, which easily surpassed an expectation calling for a rise of 20,000. February’s figure was also revised higher to show an increase of 2,800 after having been previously reported as a drop of 6,400.

The rally in employment in March sent the total data to 12.06 million, the highest level on record. On a yearly basis, employment grew by 146,000, or 1.22%, marking the fastest percentage increase since September last year.

Meanwhile, the greenback has been losing its steam following U.S. President Donald Trump’s comments over the current strength of the currency. The U.S. dollar slumped broadly versus most of its peers after Trump told the Wall Street Journal that the dollar "is getting too strong". The President stated that the Federal Reserve should keep interest rates low.

Crude oil futures prices slid for a second session on Thursday, moving away from a one-month high recorded the last session in spite of a drop in U.S. inventories last week. The Energy Information Administration (EIA) reported that U.S. oil storages unexpected fell in the week through April 07th by 2.2 million barrels as imports declined by 717,000 barrels a day.



Technicals

NZDUSD


NZDUSD reversed strongly from a support at 0.69100. The pair has not only breached both short-term and long-term MAs, but also broken through a major resistance at 38.2% Fibonacci level. RSI is heading upwards, suggesting further advances which can send the pair as high as 0.70400.

Trade suggestion 

Buy Stop at 0.70000, Take profit at 0.70400, Stop loss at 0.69800



EURUSD


EURUSD has been rising higher following a hit with the short-term MA20. The pair reversed after failing to trade lower this dynamic support. The downtrend seemed to reverse as the price action has broken above both two MAs. The price is expected to reach a resistance at 1.07400.

Trade suggestion 

Buy Stop at 1.06800, Take profit at 1.07400, Stop loss at 1.06500



BRENT


Brent crude one more time reversed higher after briefly falling below the short-term MA20. The market remains in the bullish zone with RSI index rebounding from the central line. In the event of extended upbeat moves, the commodity is expected to retest the level 56.60.

Trade suggestion 

Buy Stop at 55.90, Take profit at 56.60, Stop loss at 55.50



SILVER


Silver has broken a firm resistance at 18.400 to reach the highest level since November 11th, 2016. As the market has hit the oversold zone, the price has retreated a little bit. However, the price is expected to reverse soon and may test a resistance at 18.610.

Trade suggestion 

Buy Stop at 18.510, Take profit at 18.610, Stop loss at 18.460

 

[CSFX.Support]

FTSE 100 Trade Idea by Capital Street FX

U.K. Shares Lose Ground, Set To Close the Holiday-shortened Week Lower

U.K. shares plunged on Thursday ahead of a long holiday with the equity market closed on Friday for the Good Friday holiday and Monday in observance of Easter. Banking stocks lost ground as investors were taking caution, waiting for financial results from U.S. heavyweights in the sector including Citigroup Inc, J.P. Morgan Chase & Co. and Wells Fargo & Co.

The FTSE 100 lost more than 0.5 percent to trade as low as 7304.00, on course to close the holiday-shortened week lower. Bank shares weighed down the stock benchmark with equities of HSBC Holdings PLC shedding 1.62 percent. Stocks of Barclays PLC slipped 0.89 percent while those of Royal Bank of Scotland PLC and Standard Chartered PLC stumbled around 1.5 percent each.

Miners’ shares were fixed. While stocks of Glencore PLC, Rio Tinto PLC and Anglo American PLC were lower, those of Fresnillo PLC, Randgold Resources PLC and Antofagasta PLC were trading in positive territories.

Trade suggestion

Sell Stop at 7300.00, Take profit 7270.00, Stop loss at 7315.00

 

[CSFX.Support]

AUDUSD Trade Idea by Capital Street FX

AUDUSD Surges Strongly After ABS Jobs Report, Trump Dumps Dollar

The Australian dollar rose strongly versus its American counterpart in Asian trading hours on Thursday after the Australian Bureau of Statistics reported the country’s jobs report for March that beat forecast. Meanwhile, the greenback has been losing its steam following U.S. President Donald Trump’s comments over the current strength of the currency.

The pair surged as high as 0.75700 – the highest level in more than a week as ABS’s report showed domestic employment increased by a massive 60,900 last month, which easily surpassed an expectation calling for a rise of 20,000. February’s figure was also revised higher to show an increase of 2,800 after having been previously reported as a drop of 6,400.

The rally in employment in March sent the total data to 12.06 million, the highest level on record. On a yearly basis, employment grew by 146,000, or 1.22%, marking the fastest percentage increase since September last year.

The U.S. dollar, however, slumped broadly versus most of its peers after Trump told the Wall Street Journal that the dollar “is getting too strong”. The President stated that the Federal Reserve should keep interest rates low.

Trade suggestion

Buy Stop at 0.75700, Take profit 0.76200, Stop loss at 0.75200

 

[CSFX.Support]

Daily Report on April 17, 2017 by Capital Street FX

Daily Report on April 17, 2017



Asian shares were mixed on Monday, weighed by down beat U.S. economic data released last Friday and uncertainties over North Korea and coming French elections. So-called safe-haven Japanese yen climbed 0.3 percent versus the dollar to its highest level since mid-November. Japan’s Topix index rose 0.5 percent though, after reversing morning declines. South Korea’s Kospi index also added 0.5 percent.

The Shanghai Composite Index plunged to the lowest level of the month, losing 0.7 percent on Monday even after upbeat economic data, weighed down by concerns over Korea and a call by China’s stock regulator for stricter supervision of companies. According to China’s government data, the economy accelerated for a second-straight quarter.

Chinese gross domestic product was reported to increase by 6.9 percent in the first quarter from a year earlier, spurred by a rise in investment, retail sales and factory output as well as robust credit growth and further strength in property markets. The figure was slightly higher than a 6.8 percent median estimate by economists.

Also having been reported on Monday, China’s fixed-asset investment excluding rural areas advanced by 9.2 percent for the first three months, accelerating from 8.1 percent growth last year. Retail sales were also reported to jump, increasing by 10.9 percent from a year earlier in March, comfortably beating a median estimate of 9.7 percent forecast by analysts. Industrial output rose 7.6 percent last month from a year earlier, compared with an estimated 6.3 percent rise.

Australia, New Zealand and Hong Kong were closed Monday, as are most major European markets. The U.S. is set to resume trading.



Technicals

GBPUSD


GBPUSD has been tracing an upward trend with support from the short-term MA20. The pair reversed higher after hitting a support at 1.25000 on Friday. As RSI index is advancing to as high as 63.41 which suggests a strong uptrend, the pair is expected to inch higher.

Trade suggestion

Buy Stop at 1.25500, Take profit at 1.25900, Stop loss at 1.25300



Sugar


Sugar has fallen below both the short-term MA20 and the long-term MA50, which suggests a strong downtrend in the market. RSI has also moved past the central line from above, signaling that the market has entered a bearish territory. In the event of further down moves, the commodity may test a support at 16.10.

Trade suggestion

Sell Stop at 16.60, Take profit at 16.10, Stop loss at 16.80



GOLD


Supported by a couple of MAs which are lingering below the price action, the precious metal has been tracing higher, heading towards a firm resistance at 23.6% Fibonacci retracement. RSI has rebounded from the central line, indicating the market remains in the bullish territory.

Trade suggestion

Buy Stop at 1290.00, Take profit at 1297.00, Stop loss at 1287.00



NASDAQ 100


U.S. stock benchmark NASDAQ 100 index has broken through a support at 5360.00 and is heading lower towards another firm support at 5320.00. The short-term MA20 has crossed over the long-term MA50 from below, suggesting a strong bearish momentum in the market. While RSI is pointing downwards, ADX is soaring, signaling further downtrend.

Trade suggestion

Sell Stop at 5350.00, Take profit at 5320.00, Stop loss at 5365.00

 

[CSFX.Support]

USD/JPY signal by Capital Street FX
From GMT 08:00 17/04/2017
Till GMT 21:00 17/04/2017
Sell at 108.200
Take profit at 107.500
Stop loss at 108.400


GBP/JPY signal by Capital Street FX
From GMT 15:30 17/04/2017
Till GMT 21:00 17/04/2017
Buy at 136.600
Take profit at 137.300
Stop loss at 136.300

 

[CSFX.Support]

Daily Report on April 18, 2017 by Capital Street FX

Daily Report on April 18, 2017



Asian shares dipped on Tuesday with MSCI's broadest index of Asia-Pacific shares outside Japan dropping 0.6%. Australian shares slumped due to a selloff in iron ore that weighed on commodity producers, offsetting gains in Japanese equities boosted by a weaker yen. Japan's Nikkei added 0.2 percent on the back of comments by U.S. Treasury Secretary Steven Mnuchin. Muchin stated on Monday that the dollar’s strength is “a good thing.”

China's CSI300 index was struggling to find direction while Hong Kong's Hang Seng index shed 0.9 percent. South Korea's KOSPI inched 0.2 percent lower after U.S. Vice President Mike Pence, in a meeting with business leaders in Seoul, said that President Donald Trump's administration would review and reform the five-year-old free trade agreement between the two countries.

The Reserve Bank of Australia released its minutes of this month’s policy meeting earlier on Tuesday, highlighting the balancing act the central bank had to perform due to “somewhat weaker than had been expected” labor market and high unemployment rate. Data released two weeks ago showed the measure of underemployment remained at a high 5.9 percent.

According to Chinese National Bureau of Statistics, the country’s home prices rose in the most cities since October. Given the fact that buyers are seemingly trying to get in the housing market ahead of any further restrictions on property purchases, new-home prices, excluding government-subsidized housing, gained last month in 62 of the 70 cities tracked by the government. This was higher than the reading of 56 in February.



Technicals

GBPAUD


The pair has put an end to a period of moving sideways that kept the prices around the 38.2% Fibonacci level. The price action has also broken above a couple of MAs, suggesting a strong uptrend. While RSI is rising, ADX chart is showing a wide gap between +DI and –DI lines, signaling further up moves.

Trade suggestion

Buy Stop at 1.66300, Take profit at 1.67000, Stop loss at 1.66000



Coffee


Coffee price has apparently been deliberated from a downtrend that was restrained by a slopping downtrend line connecting lower highs. The commodity price is heading upwards, on course to retest a resistance at 50.0% Fibonacci retracement.

Trade suggestion

Buy Stop at 141.00, Take profit at 143.00, Stop loss at 140.00



BRENT


Brent crude has been tracing lower, sending the price action below two MAs. The commodity has also turned these two MAs into new dynamic resistances. Crude prices are expected to edge lower to as low as 54.70 as RSI is heading downwards while ADX index is soaring, suggesting a strengthening down trend.

Trade suggestion

Sell Stop at 55.20, Take profit at 54.70, Stop loss at 55.50



FTSE 100


FTSE 100 index’s price action has broken below both the long-term MA50 and short-term MA20. The stock benchmark has been trapped between a trading range of 7400.00 and 7260.00 and looked set to test the lower boundary with the market remaining in bearish zone.

Trade suggestion

Sell Stop at 7300.00, Take profit at 7260.00, Stop loss at 7320.00

 

[CSFX.Support]

GBPUSD Trade Idea by Capital Street FX

Sterling Soars To The Highest Since Early December After May’s Surprise Statement

British Pound surged nearly 2 percent to trade at the highest level since early December, 2016 after Prime Minister Theresa May on Tuesday called for an early election on June 8, which suggests a potential stable domestic U.K. politics ahead of Brexit.

The pair GBPUSD soared steeply on Tuesday after May called an early vote in June in an attempt to seek to strengthen her parliamentary power in divorce talks with the European Union.

According to Deutsche Bank, May’s surprise statement was considered to be a “game-changer” for the currency as support for her Brexit plan will be shored up considerably if she wins the June poll.

Trade suggestion

Buy Stop at 1.27600, Take profit 1.28000, Stop loss at 1.27400

 

[CSFX.Support]

Netflix Trade Idea by Capital Street FX

Supported by A Sharp Surge in Earnings, Shares of Netfix Reverse Higher

Shares of Netflix added 1.43% in post market trading, reversing higher after a 4-percent loss following a quarterly report that showed the streaming giant added fewer subscribers than expected during the first quarter.

Netflix was firstly weighed down by data that showed the company added 5.0 million subscribers during the quarter, which was lower than both analysts’ expectation of 5.3 million new subscribers and Netflix’s guidance for 5.2 million net adds.

However, shares regained its strength thanks to upbeat earnings. The company said its bottom line rose to $178 million, or $0.40 per share, a rise of more than 600% compared to $28 million, or $0.06 per share, in last year’s first quarter.

Revenue for the quarter was also reported to rise, jumping 34.7% to $2.64 billion from $1.96 billion last year.

Trade suggestion

Buy Stop at 149.50, Take profit 152.50, Stop loss at 148.00