Daily Market Analysis by CapitalStreetFX

[CSFX.Support]

GBP/JPY signal by Capital Street FX

From GMT 06:00 27/04/2017
Till GMT 21:00 27/04/2017

Buy at 143.300
Take profit at 114.000
Stop loss at 143.000

 

[CSFX.Support]

Daily Report on April 28, 2017 by Capital Street FX

Daily Report on April 28, 2017



Global stock market retreated on Friday after having edged higher for six sessions in a row. The bullish momentum lost its stream amidst intensifying geopolitical concerns and caution ahead of a report on growth in the world’s largest economy. The MSCI Asia Pacific Index fell 0.3 percent, paring its weekly gain to 1.4 percent. The index looked set to mark for a fourth monthly gain.

Japan’s Topix fell 0.3 percent on Friday but was still poised for a gain of 2.9 percent for the week, the best performance this year. While South Korea’s Kospi slipped 0.2 percent from the highest level since 2011, the Hang Seng Index in Hong Kong dropped 0.4 percent. By contrast, the Shanghai Composite Index added 0.1 percent. The Stoxx Europe 600 Index slipped 0.1 percent, moving far away from the level not seen since August 2015 logged on Wednesday.

According to the U.K.'s Office for National Statistics, the country’s economy expanded at a quarterly rate of 0.3% in the first quarter of 2017. The figure was lower than both 0.7% expansion recorded in the final three months of last year and economists’ expectation calling for a rise of 0.4%. Last quarter’s reading was the weakest quarterly expansion since the first quarter of 2016. On a yearly basis, growth slowed to 1.2% from 2.7%, the ONS said.

Reported by the INSEE, French gross domestic product’s expansion slowed to 0.3% quarter-on-quarter in the three months through March after growing 0.5% at the end of 2016. Analysts had expected the economy expanded at the rate of 0.4%. U.S. GDP is due later on Friday. The result is projected to show the economy expanded at a 1 percent annualized rate in the first quarter, the weakest pace in a year.



Technicals

AUDJPY


AUDJPY reversed higher after a hit with a support at 82.900. The price action is struggling to cross over the short-term MA20 from below. The RSI is surging to as high as 57.08, suggesting further advances. The pair is expected to test a resistance at 38.2% Fibonacci retracement.

Trade suggestion

Buy Stop at 83.400, Take profit at 83.900, Stop loss at 83.200



EURJPY


EURJPY has been support by the short-term MA20 which has forced the price action to reverse higher. The pair extended its up moves and is testing its highest levels since mid-March. There is still room for further advances as the RSI has not reached the overbought yet. A resistance at 122.500 is within the sight.

Trade suggestion

Buy Stop at 121.900, Take profit at 122.500, Stop loss at 121.600



USDCAD


As can be seen from the price chart, USDCAD has been supported by two MAs hanging below the price action and looked set to retest a major resistance at 1.37000. Both RSI and ADX indices are soaring, suggesting that the pair may edge higher.

Trade suggestion

Buy Stop at 1.36500, Take profit at 1.37000, Stop loss at 1.36250



SP500

U.S. Sp500 index has been struggling at a resistance at 2390.00 since Tuesday, causing the ADX index to fall lower as no clear trend was formed in the market. However, as can be seen from RSI index which has been held high, the bull is still dominating the market and might support for the price to inch higher.

Trade suggestion

Buy Stop at 2390.00, Take profit at 2400.00, Stop loss at 2385.00

 

[CSFX.Support]

Alphabet Trade Idea by Capital Street FX

Shares of Alphabet Soar 4% after First-Quarter Earnings Report

Shares of Google parent Alphabet Inc jumped by more than 4 percent in after-hours trading on Thursday after the company posted a surge in profit and revenue which were boosted by growth in its core advertising business.

Alphabet reported net income rose 29 percent to hit $5.43 billion, or $7.73 per share, up from $4.2 billion, or $6.02 per share, in the year-earlier period. The result was well above economists’ expectation for earnings per share of $7.38.

Revenue was reported to reach $24.7 billion in the first three-month period to March, up from $20.2 billion in the year-earlier period and above market forecast of $19.7 billion. Particularly, Google advertising revenues contributed $21.4 billion.

Trade suggestion

Buy Stop at 929.00, Take profit 935.00, Stop loss at 926.00

 

[CSFX.Support]

AUD/NZD signal by Capital Street FX

From GMT 08:00 28/04/2017
Till GMT 21:00 28/04/2017

Buy at 1.08900
Take profit at 1.09300
Stop loss at 1.08700

 

[CSFX.Support]

Daily Report on May 02, 2017 by Capital Street FX

Daily Report on May 02, 2017



Asian shares climbed on Tuesday following a reopening after holidays. The MSCI Asia Pacific Index returned to the highest level since June 2015, adding 0.5 percent with gains led by South Korea’s Kospi index which advanced 0.8 percent. The index hit an intra-day high that passed its all-time closing high reached on May 2, 2011. While the Hang Seng rose 0.3 percent, the Shanghai Composite Index lost stream after four straight days of gains, declining 0.2 percent.

A weak Japanese Yen boosted the Topix index higher. The Japanese stock benchmark added 0.7 percent, advancing for a second day to the highest since March. Tokyo markets will be closed for holidays in observance of Constitution Day over the next three days.

The Australian dollar extended an advance versus its American counterpart on Tuesday after the Reserve Bank of Australia’s decision on policy. Australia's central bank left its cash rate at 1.5 percent on Tuesday. The result came amidst optimism over faster domestic inflation and an upswing in global growth.

Markit on Tuesday reported China's factory sector lost momentum in April as domestic and export demand faltered. The Caixin/Markit Manufacturing Purchasing Managers' index (PMI) fell to 50.3 in April from March's 51.2. The reading was far below economist forecasts' of 51.0 and marked the slowest pace since September 2016.

According to the U.S. Bureau of Economic Analysis, U.S. consumer spending was unchanged in March for a second straight month. Due to the weak domestic demand in the first quarter, the result was below analysts’ forecast calling for a 0.2 percent advance and directly sent the overall monthly inflation rate to a negative territory for the first time in a year.

The core PCE index fell 0.1% in March compared with the previous month, in line with expectations. On a yearly basis, the rate declined to 1.6% from 1.8%. US manufacturing was also reported to grow slower than forecast in April. As stated by the Institute for Supply Management, the Institute for Supply Management slid to 54.8 from 57.2, missing expectation for a reading of 56.5 due to less hiring and a slower pace of incoming orders.



Technicals

USDJPY


USDJPY has been moving sideways to higher after breaching a resistance at 112.000 and is likely to extend its rally as the ADX index is showing a strong bullish momentum in the market. RSI has entered the overbought zone so a reversal is expected afterwards.

Trade suggestion

Buy Stop at 112.200, Take profit at 112.600, Stop loss at 112.000



BRENT


Brent crude has been tracing an uptrend since it broke out of a sideway period. The commodity is heading towards a resistance at 52.80 with +DI line crossing over the –DI line from below, signaling further advances. Rising ADX and RSI confirms the signal.

Trade suggestion

Buy Stop at 52.00, Take profit at 52.80, Stop loss at 51.60



SUGAR

As can be seen from the price chart, the sugar price has been depressed by a couple of MAs. The commodity is struggling to cross over a long-term MA50 currently and looked set to move past this dynamic resistance as the market has entered the bullish zone. Both RSI and ADX indices are rising, coupled with a widening gap between +DI and –DI lines, suggesting further advances.

Trade suggestion

Buy Stop at 16.40, Take profit at 17.10, Stop loss at 16.10



GOLD


Gold price has fallen into a period of moving sideways after dropping to the lowest level since April 11th. The precious metal may inch lower to test a support at 38.2% Fibonacci level as the market has been dominated by a strong bearish momentum, not to mention downward pressure from two MAs hanging above the price action.

Trade suggestion

Sell Stop at 1255.00, Take profit at 1250.00, Stop loss at 1257.00

 

[CSFX.Support]

CVS Trade Idea by Capital Street FX

Shares of CVS Reverse Higher As First-Quarter Earnings Results Top Estimates

Shares of CVS Health Corp. added more than 1.6 percent in premarket trading on Tuesday after briefly losing more than 1% following the company’s quarterly earnings report.

CVS posted first-quarter net income of $953.0 million, or 92 cents per share, down from $1.15 billion, or $1.04 per share, for the same period last year. Adjusting for one-time items, earnings per share was $1.17, beating the $1.10 forecast by analysts.

The retail and health care company witnessed revenue rose to $44.5 billion in the three-month period to March from $43.2 billion recorded one year ago. The result also beat market’s expectation of $44.2 billion.

CVS expects EPS for the second quarter to reach $1.15 to $1.19 and anticipates full-year EPS of $5.02 to $5.18.

Trade suggestion

Buy Stop at 83.30, Take profit 84.00, Stop loss at 83.00

 

[CSFX.Support]

AUDUSD Trade Idea by Capital Street FX

The Aussie Extends Its Rally Against The Greenback After the RBA Holds Rate

The Australian dollar extended an advance versus its American counterpart on Tuesday after the Reserve Bank of Australia’s decision on policy.

The pair AUDUSD rose another 0.35 percent after having increased for two days in a row. The pair has been boosted partly by a weak greenback as U.S. economic data released on Monday missed market’s expectation.

According to the U.S. Bureau of Economic Analysis, U.S. consumer spending was unchanged in March for a second straight month. Due to the weak domestic demand in the first quarter, the result was below analysts’ forecast calling for a 0.2 percent advance and directly sent the overall monthly inflation rate to a negative territory for the first time in a year.

The core PCE index fell 0.1% in March compared with the previous month, in line with expectations. On a yearly basis, the rate declined to 1.6% from 1.8%.

US manufacturing was also reported to grow slower than forecast in April. As stated by the Institute for Supply Management, the Institute for Supply Management slid to 54.8 from 57.2, missing expectation for a reading of 56.5 due to less hiring and a slower pace of incoming orders.

On the other hand, Australia’s central bank left its cash rate at 1.5 percent on Tuesday. The result came amidst optimism over faster domestic inflation and an upswing in global growth.

Trade suggestion

Buy Stop at 0.75500, Take profit 0.76000, Stop loss at 0.75300

 

[CSFX.Support]

AUD/JPY signal by Capital Street FX

From GMT 03:30 02/05/2017
Till GMT 21:00 02/05/2017

Buy at 84.400
Take profit at 85.000
Stop loss at 84.100

 

[CSFX.Support]

Daily Report on May 03, 2017 by Capital Street FX

Daily Report on May 03, 2017



Asian shares were mixed on Wednesday as investors were cautious after a poor earnings report of Apple Inc. and ahead of the Federal Reserve’s policy review and Friday’s jobs report. MSCI's broadest index of Asia-Pacific shares outside Japan edged lower from a near-two-year high hit on Tuesday. While stocks in Singapore, Malaysia and Thailand were all higher, Chinese shares retreated almost 0.3 percent.

Taiwan’s Taiex gained 0.2 percent with Hon Hai Precision Industry Co., the company that makes Apple’s iPhones, reversing higher and shrugging off its customer’s report on weaker sales. Markets are nervously waiting for rate announcement from the Federal Reserve that concludes its two-day meeting later on Wednesday.

According to Statistics New Zealand, the country’s unemployment rate fell to 4.9 percent in the three months through March 31 from 5.2 percent in the December quarter. The reading was not only better than the 5.1 percent economists had penciled in but also marked the lowest level since the September quarter of last year. Employment was reported to grow 1.2 percent on a quarterly basis in first three months of the year while wage growth was steady at 0.4 per cent.

Crude futures prices were struggling for direction on Wednesday as U.S. crude stocks fell last week. As stated by the American Petroleum Institute (API), U.S. crude inventories fell by 4.2 million barrels to 528.3 million barrels in the week ended April 28. The decrease was larger than expected. Analysts had forecast a drop of 2.3 million barrels last week. The U.S. government will release its Energy Information Administration (EIA) inventory data later on the day.



Technicals

EURAUD


EURAUD has been supported by two MAs moving below the price action. The pair failed to break below the long-term MA50 and has crossed over the short-term MA20, looking set to march higher. EURAUD may surge as high as 1.46400 – the level recorded last Friday.

Trade suggestion

Buy Stop at 1.45600, Take profit at 1.46400, Stop loss at 1.45200



AUDNZD


AUDNZD has been tracing a steep down move which sent the pair from as high as 1.09300 to as low as 1.08000 – the lowest level since April 25th. The price action has also broken below both long-term and short-term MA, suggesting a strong downtrend. A support at 38.2% Fibonacci level is within the sight.

Trade suggestion

Sell Stop at 1.08000, Take profit at 1.07600, Stop loss at 1.08200



Natural Gas


Natural Gas continued to drop lower after a short consolidation following a sharp down move. The market has entered the bearish zone, as indicate by RSI index which fell to as low as 39.59. With downward pressure from two MAs hanging above the price action, the commodity is expected to test a support at 3.130.

Trade suggestion

Sell Stop at 3.170, Take profit at 3.130, Stop loss at 3.190



BRENT


Brent crude has been pressurized by two MAs that are lingering above the price action. RSI remains in the bearish zone, indicating that the market has been dominated by sellers. The commodity is expected to inch lower to retest a low at 50.10.

Trade suggestion

Sell Stop at 50.80, Take profit at 50.10, Stop loss at 51.10

 

[CSFX.Support]

Gilead Sciences Trade Idea by Capital Street FX

Depressed by Disappointing Earnings Results, Gilead Sciences Shares Edge Lower

Shares of Gilead Sciences Inc. declined by more than 2.5 percent in the extended session on Tuesday after the biopharmaceutical company announced its quarterly earnings that fell short of Wall Street estimates.

The California-based biotech company posted adjusted first-quarter earnings of $2.23 a share on revenue of $6.51 billion. Meanwhile, economists had expected earnings of $2.28 a share on revenue of $6.63 billion.

Gilead maintained its guidance for the year of revenue of $22.5 billion to $24.5 billion, which excludes royalty revenue. The company’s outlook is not as optimistic as analysts’ expectation calling for total revenue of $24.73 billion.

Trade suggestion

Sell Stop at 66.85, Take profit 66.00, Stop loss at 67.20

 

[CSFX.Support]

USD/JPY signal by Capital Street FX
From GMT 08:50 03/05/2017
Till GMT 21:00 03/05/2017
Buy at 112.200
Take profit at 112.600
Stop loss at 112.000

EUR/AUD signal by Capital Street FX
From GMT 16:30 03/05/2017
Till GMT 21:00 03/05/2017
Buy at 1.46600
Take profit at 1.47200
Stop loss at 1.46300

 

[CSFX.Support]

Daily Report on May 04, 2017 by Capital Street FX

Daily Report on May 04, 2017



European shares advanced on Thursday, boosted higher by upbeat earnings results while Australian and Chinese stocks fell as metals prices declined. Indeed, the Euro Stoxx 50 index gained for a third day, rising 0.2 percent after first-quarter earnings from companies including HSBC Holdings Plc and Royal Dutch Shell Plc beat estimates. In Asian trading hours, Australia’s S&P/ASX 200 Index lost 0.3 percent whereas Hang Seng Index fell 0.3 percent.

At the end of its two-day meeting on Wednesday, the Federal Reserve kept its benchmark interest rate unchanged as expected. However, the central bank emphasized the strength of the labor market instead of reiterating weak first-quarter economic growth, signaling that it might still on track for two more rate increases this year. According to the CME Group's FedWatch Tool, Futures traders are now pricing in a 72 percent chance of a June rate hike, up from 63 percent before the Fed's statement.

As stated by a report from Markit, growth in China's services sector cooled on April. China’s Caixin/Markit services purchasing managers' index (PMI) fell to 51.5 last month from March's 52.2. The index extended its downward rally to a fourth month in a row and marked its weakest growth pace since May 2016.

Crude oil futures remained weak on Thursday after weekly data showed a smaller than expected decline in U.S. inventories. According to the Energy Information Administration, U.S. crude stockpiles fell by 930,000 barrels in the week to April 28. This was much less than analysts' expectations for a decrease of 2.3 million barrels.



Technicals

GBPUSD


GBPUSD reversed higher from the lowest level since April 26th. The pair is facing a resistance at 1.29000 after sending the market into a bullish zone, as indicated by RSI index that has moved past the 50 line. A major resistance at 38.2% Fibonacci is within the sight.

Trade suggestion

Buy Stop at 1.29000, Take profit at 1.29400, Stop loss at 1.28800



EURJPY


EURJPY has been chasing an uptrend since it reversed higher from a support at 23.6% Fibonacci level. The pair extended its up moves to a fifth session in a row, attempting to test another Fibonacci retracement at 0.0%. Both RSI and ADX are soaring, suggesting a strong uptrend.

Trade suggestion

Buy Stop at 123.400, Take profit at 124.000, Stop loss at 123.100



NZDJPY


As can be easily seen from the price chart, the pair NZDJPY has been supported by the short-term MA20. The price rebounded after hitting this dynamic support and is likely to march higher to reach a resistance at 78.000 with the market remaining in the bullish zone.

Trade suggestion

Buy Stop at 77.600, Take profit at 78.000, Stop loss at 77.400



Dow Jones


Dow Jones’ price action has crossed over the short-term MA20, extending its upward rally after a period of moving sideways to lower. As indicated by RSI index which has surged to as high as 62.88, the market remains in the bullish zone, signaling further advances.

Trade suggestion

Buy Stop at 21000.00, Take profit at 21050.00, Stop loss at 20975.00

 

[CSFX.Support]

Facebook Trade Idea by Capital Street FX

Facebook Shares Plunge Even Though Earnings and Revenue Smash Estimates

Shares of Facebook Inc declined by 2.5 percent in after-hours trading on Thursday after the company said its revenue might slump later this year after it stops increasing the frequency of marketing spots in the news feed in an attempt to avoid driving away users.

The announcement hit investors hard and caused Facebook’s shares to reverse lower, paring gains added after the California-based company revealed its earnings and revenue that smashed estimates.

Revenue for the three-month period to March 31st was reported to rise 49.3% to $8.03 billion, up from $5.38 billion in the same period last year. The result beat first-quarter revenue expectations calling for $7.83 billion. Net income reached $3.06 billion, or $1.04 per share, up from $1.74 billion, or 60 cents per share.

The number of monthly active users jumped 17 percent to 1.94 billion while the number of daily active users climbed 18% to 1.28 billion. Analysts had expected the former to hit 1.91 billion and the latter to reach 1.256 billion.

Trade suggestion

Sell Stop at 148.00, Take profit 146.00, Stop loss at 149.00

 

[CSFX.Support]

Trade signals by Capital Street FX

AUD/USD signal by Capital Street FX
From GMT 05:00 04/05/2017
Till GMT 21:00 04/05/2017
Buy at 0.74100
Take profit at 0.73700
Stop loss at 0.74300


EUR/CAD signal by Capital Street FX
From GMT 17:00 04/05/2017
Till GMT 21:00 04/05/2017
Buy at 1.05900
Take profit at 1.51600
Stop loss at 1.59600

 

[CSFX.Support]

Daily Report on May 05, 2017 by Capital Street FX

Daily Report on May 05, 2017



Asian shares edged lower for a third consecutive day on Friday, weighed down by fresh falls in commodities. Chinese led losses in Asian shares while Japan and South Korea were closed for a holiday on Friday. The Shanghai Composite Index extended its downward rally, in line for a fourth weekly decline due to tighter financial regulations that weighed on banking shares.

MSCI's broadest index of Asia-Pacific shares outside Japan slumped 0.8 percent on Friday to trade at its lowest level since April 25. As investors flocked into safe-haven assets, the Japanese Yen rose nearly 0.3 percent to dollar after rising 0.3 percent Thursday. A sharp slide in crude prices depressed energy companies’ stocks, boosting yen jump higher against most of its peers, including the greenback.

The U.S. government will publish the Non-farm Payrolls later on the day with economists expecting the world’s largest economy may have added 190,000 jobs last month. Fed Chair Janet Yellen and her deputy Stanley Fischer are also due to speak on Friday.

Crude oil futures prices fell further on Friday, losing 2 percent after tumbling in the previous session. Steep down moves sent the price to a five-month low. While OPEC and other producers seemed to rule out deeper supply cuts, U.S. oil production continued to march higher. U.S shale oil producers have boosted their production by over 10 percent to 9.3 million bpd since mid-2016.



Technicals

AUDNZD

After reversing lower from a resistance at 1.08000, the pair AUDNZD has broken below a support at 50.0% Fibonacci retracement. While RSI is heading downwards, ADX is soaring, suggesting a strong downtrend in the market. The pair is expected to test a firm support at 1.06800.

Trade suggestion

Sell Stop at 1.07200, Take profit at 1.06800, Stop loss at 1.07400



NZDJPY

NZDJPY rebounded from a strong support at 77.000 and brought its price action above a short-term MA20. The pair is facing a dynamic resistance which is the long-term MA50. In the event of extended up move, the pair is likely to attempt a resistance at 78.000.

Trade suggestion

Buy Stop at 77.500, Take profit at 78.000, Stop loss at 77.300



SUGAR

Sugar has been moving sideways under 61.8% Fibonacci level after having fallen below this handle yesterday. An unclear trend in the market sent the ADX index lower but RSI remains in the bearish zone and continues to point downward, suggesting potentially further declines.

Trade suggestion

Sell Stop at 15.30, Take profit at 15.00, Stop loss at 15.45



FTSE 100


FTSE 100 has been moving sideways around a couple of MAs and trapped in a narrow trading range. The RSI index has moved past the 50 line while ADX index is soaring with a widening gap between +DI and –DI lines, indicating a surging bullish momentum.

Trade suggestion

Buy Stop at 7260.00, Take profit at 7300.00, Stop loss at 7240.00

 

[CSFX.Support]

Gold Trade Idea by Capital Street FX

Gold Under Pressure, Looking Set for The Largest Weekly Percentage Loss in Six Months

Gold futures prices struggled for direction on Friday, on track for the largest weekly loss of the year so far. The precious metal has been pressured by a report showing a slowdown in demand for gold released on Thursday and hawkish comments from the Federal Reserve.

Gold futures for June delivery looked set to close the week more than 3 percent lower, the largest weekly percentage loss since the week ended November 11th.

The World Gold Council on Thursday reported that global central bank demand for the precious metal plunged by 27% in the first quarter compared to the same time a year ago. On a yearly basis, global gold investment demand also lost 34% for the quarter.

The U.S. central bank kept its rate unchanged on Wednesday, emphasizing the strength of the labor market. That signaled the Fed might still on track for two more rate increases this year. Following the Federal Reserve’s confidence in the U.S. economy, April’s jobs report was seen to strengthen the possibility of the central bank to hike rates.

Non-farm payrolls showed 211,000 people found new jobs in April, which sent the unemployment rate down to 4.4% from 4.5% recorded in the previous month.

Trade suggestion

Sell Stop at 1226.00, Take profit 1220.00, Stop loss at 1229.00

 

[CSFX.Support]

CBS Trade Idea by Capital Street FX

Shares of CBS Jump After Quarterly Revenue and Profit Beat Analysts’ Estimates

Shares of CBS Corp jumped nearly 2.6 percent in the extended session Thursday after the media company said its quarterly results topped Wall Street estimates thanks to higher content licensing and subscription fees.

The New York-based company reported adjusted first-quarter earnings of $1.09 a share and revenue of $3.34 billion for the first quarter ended March 31. The most-watched U.S. TV network witnessed revenue from content licensing and distribution jumped 16 percent while those from cable TV operators and from its own streaming content also surged by more than 16.5 percent.

According to CBS CEO Leslie Moonves, revenue from distributors and broadcast affiliates, which is expected to increase about 25 percent this year, will help offset losses in advertising revenue, which had dropped 23 percent to $1.6 billion last quarter from a year earlier and will continue to fluctuate from quarter to quarter, depending on events.

Trade suggestion

Buy Stop at 65.50, Take profit 67.00, Stop loss at 65.00

 

[CSFX.Support]

CAD/JPY signal by Capital Street FX

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

Sell at 81.300
Take profit at 80.800
Stop loss at 81.500

 

[CSFX.Support]

Daily Report on May 08, 2017 by Capital Street FX

Daily Report on May 08, 2017



Most Asian markets advanced on Monday, tracing upbeat sentiment from U.S. stocks which closed at a record on Friday on the back of better-than-forecast data on American jobs. While Japanese shares rallied after reopening following a three-day holiday, Chinese stocks continued to trace a selloff that by far has wiped out more than $400 billion from the value of local shares.

The MSCI Asia Pacific Index jumped 1.3 percent to the highest since June 2015, led by gains of equities in Tokyo and Seoul. The Topix index rose the most since early January, adding 2.3 percent to trade at the highest since December 2015. Likewise, South Korea’s Kospi index soared 2.3 percent, the most since September 2015, to a fresh record. By contrast, the Shanghai Composite Index dropped another 0.8 percent to trade at the lowest level since October.

While the euro retreated following Emmanuel Macron’s victory as France’s next president, European stocks also found themselves in a negative territory as commodities producers were weighed down by the declines in prices of raw materials. The Stoxx Europe 600 slipped 0.1 percent in early trade.

According to China government data released on Monday, the country’s imports rose 11.9 percent in April, cooling from March's 20.3 percent rise and missing analysts' expectations for an 18 percent rise. Exports also slowed from the previous month’s reading. The headline-figure only added 8.0 percent from a year earlier, falling short of expectations of 10.4 percent.



Technicals

NZDJPY


NZDJPY has broken above a major resistance at 78.000 and is extending its uptrend in an attempt to test another firm resistance at 38.2% Fibonacci retracement. Both RSI and ADX indices are soaring higher, not to mention a widening gap between +DI and –DI lines, suggesting further advances.

Trade suggestion

Buy Stop at 78.200, Take profit at 78.600, Stop loss at 78.000



GBPNZD


GBPNZD has been trading sideways to lower around a major level at 38.2% Fibonacci retracement. The pair has also been under pressure from two MAs hanging above the price action. While RSI index is edging lower, ADX index has been soaring, suggesting a strong downtrend in the market.

Trade suggestion

Sell Stop at 1.86900, Take profit at 1.86000, Stop loss at 1.87300



BRENT


Brent crude gapped up in early on Monday but failed to retain its bullish momentum. Crude oil price retreated under downward pressure from the short-term MA20 and is likely to head lower to retest a six-month low at 46.62 recorded last week.

Trade suggestion

Sell Stop at 49.00, Take profit at 47.00, Stop loss at 50.00



EURO50


Euro 50 index retreated from all-time record high at 3680.80 and is facing a dynamic support at the short-term MA20. ADX reversed lower, showing a weakening downtrend in the market. In the event of further downtrend, the stock benchmark may test a support at 3610.00.

Trade suggestion

Sell Stop at 3640.00, Take profit at 3610.00, Stop loss at 3655.00

 

[CSFX.Support]

Silver Trade Idea by Capital Street FX

Silver Hovers Around Four-month Lows, Pressurised by A Strong Greenback

Silver reversed lower on Monday, remaining near four-month lows as the greenback gained ground versus most of its peers and thus put pressure on commodity and precious metals which are quoted by dollar.

Silver futures price for July delivery edged nearly 0.1 percent lower after having lost 5.7 percent last week – their worst weekly decline since the week ended October 7th, 2017. The metal was weighed down by a strong dollar that makes assets traded in the greenback less affordable for buyers using other currencies.

Cleveland Fed President Loretta Mester on Monday said that the central bank should continue raising interest rates as its employment goal had been met and inflation goal had been so close. Speaking at the Chicago Council on Global Affairs, Mester, a hawkish Fed policymaker, claimed that while risks are “roughly balanced”, the Federal Reserve should not delay further policy tightening.

Trade suggestion

Sell Stop at 16.230, Take profit 16.130, Stop loss at 16.280