Daily Market Analysis by CapitalStreetFX

[CSFX.Support]

Daily Report on May 25, 2017 by Capital Street FX

Daily Report on May 25, 2017



Asian shares advanced to two-year highs on Thursday after the U.S. Federal Reserve’s last meeting minutes signaled a cautious approach to future rate hikes. The dollar and U.S. bond yields were also hit by the reduction of the central bank’s $4.5 trillion of bond holdings. The MSCI Asia Pacific Index soared by 0.8 percent to the highest level since May 2015.

While South Korea’s Kospi index jumped 0.8 percent to an all-time high, Taiwan’s Taiex also extended gains to the highest since 2000. Japan’s Topix index and the Shanghai Composite both rose 0.4 percent while the Hang Seng China Enterprises Index climbed 1.3 percent, trading above the level of 10,500 for the first time since March 29.

According to the minutes from the Fed's last policy meeting which was released on Wednesday, policymakers agreed they should hold off on raising interest rates, expressing concern that progress on inflation might have slowed. The greenback weakened to the lowest since November with Fed funds rate futures pricing in about a 75 percent chance that the Fed will raise rates next month, down from more than 80 percent earlier this week.

Crude oil prices traded around five-week highs ahead of OPEC meeting in Vienna later in the day. As stated by the Energy Information Administration, U.S. crude oil inventories fell for the seventh straight week, dropping 4.4 million barrels in the week ended May 19. This topped analysts' forecasts of a 2.4 million-barrels decline.



Technicals

NZDUSD


NZDUSD extended its up moves, moving past the last high at 0.70455 recorded on Tuesday and is marching higher towards a significant level at 0.71000 with support from a couple of MAs. RSI has risen to as high as 69.11, looking set to enter an overbought zone and indicating an overwhelmingly strong bullish force in the market.

Trade suggestion

Buy Stop at 0.70600, Take profit at 0.71000, Stop loss at 0.70400



EURO 50


Euro 50 index gapped up on Thursday, bringing its price action above two MAs –which had refrained the prices from marching higher for a while. The stock benchmark index is facing the last high at around 3600.00 and is likely to surge higher with the market falling into the bullish zone, as indicate by RSI index.

Trade suggestion

Buy Stop at 3605.00, Take profit at 3645.00, Stop loss at 3585.00



SILVER


SILVER rebounded from a support at 17.135 following a correction from a high level at 17.212. The precious metal’s price is inching higher towards a resistance at 17.300 with upward support from two MAs lingering below the price action. ADX and RSI indices are rising, confirming the uptrend.

Trade suggestion

Buy Stop at 17.200, Take profit at 17.300, Stop loss at 17.150



AUDCAD


As can be easily seen from the price chart, the pair AUDCAD has been depressed by both long-term and short-term MAs. With declining RSI and rising ADX, the pair may drop lower to as low as 38.2% Fibonacci retracement as the bear is getting stronger in the market.

Trade suggestion

Sell Stop at 1.00400, Take profit at 0.99900, Stop loss at 1.00600

 

[CSFX.Support]

Natural Gas Trade Idea By Capital Street FX

Natural Gas Prices Extend Losses After A Larger-than-expected Rise in U.S. Supplies

Natural gas futures prices fell on Thursday; extending their downward rally to a third session in a row after a weekly report showed a larger-than-expected rise in U.S. supplies of the commodity.

Natural gas futures prices for June delivery dropped more than 1.1 percent from Wednesday’s settlement to trade around $3.260 per million British thermal units after the data release.

As stated by the U.S. Energy Information Administration, U.S. natural gas supplies rose by 75 billion cubic feet for the week ended May 19, topping analysts’ forecast for a build of 67 billion cubic feet. According to the report, total stocks now stand at 2.444 trillion cubic feet, 241 billion cubic feet above the five-year average.

Trade suggestion

Sell Stop at 3.260, Take profit 3.230, Stop loss at 3.270

 

[CSFX.Support]

HP Inc. Trade Idea by Capital Street FX

Shares of HP Inc. Hit $20 Following Last Quarter’s Earnings Results

Shares of HP Inc. added 3 percent to hit $20 in late trading on Wednesday after the company reported higher-than-expected sales and earnings for the last quarter. That was the highest level HP’s stock prices have ever hit since the company split from Hewlett Packard Enterprise.

The California-based information technology company posted net income of $600 million, or 33 cents a share, on sales of $12.4 billion for its fiscal second quarter ending in April.

After adjusting for one-time items such as restructuring charges, HP said it earned 40 cents a share, topping market forecast calling for earnings of 39 cents a share on sales of $11.9 billion.

The company raised its guidance for full-year adjusted earnings to $1.59 to $1.66 a share, up from previous forecast of $1.55 to $1.65 a share.

Trade suggestion

Buy Stop at 20.00, Take profit 20.20, Stop loss at 19.90

 

[CSFX.Support]

USD/CAD signal by Capital Street FX

USD/CAD signal by Capital Street FX

From GMT 13:50 25/05/2017
Till GMT 21:00 25/05/2017

Sell at 1.34000
Take profit at 1.33400
Stop loss at 1.34300

 

[CSFX.Support]

Daily Report on May 26, 2017 by Capital Street FX

Daily Report on May 26, 2017



Asian stocks were broadly lower on Friday, depressed by losses in shares of energy producers. Having closed at a two-year high on Thursday, MSCI's broadest index of Asia-Pacific shares outside Japan dropped 0.2 percent in the last session of the week. Still, the stock benchmark looked set to close the week 1.4 percent higher.

Stocks in Tokyo, Sydney and Singapore fell with Japan's Nikkei slipping 0.2 percent, but on track for a 0.9 percent increase for the week. Australia’s S&P/ASX 200 Index plunged by 0.75 percent, hit hard by 2.3 percent decline in shares of BHP Billiton Ltd. Australia's benchmark was poised for a 0.3 percent weekly rise.

Meanwhile, Hong Kong's Hang Seng added 0.1 percent and China's CSI 300 was flat. Both equity benchmark indices headed towards gains for the week with the former heading for a 2.4 percent increase for the week while the latter heading for a 2.4 percent increase for the week

Crude price remained weak after having lost nearly 5 percent in the previous session. The sharp down move came after Thursday's meeting in Vienna between the Organization of the Petroleum Exporting Countries (OPEC) and some non-OPEC producers disappointed investors wagering for longer or larger supply curbs. OPEC and its allies only agreed to extend a pledge to cut around 1.8 million barrels per day (bpd) until the end of the first quarter of 2018.

Sterling continued to edge lower on Friday after a YouGov poll released late Thursday showed a dramatic narrowing of the gap between the Conservatives (43 percent) and the Labour Party (38 percent). The Pound lost another 0.4 percent after having sunk by 0.3 percent on Thursday following ONS data that showed Britain's economy’s growth rate slowed more than previously reported in the first quarter of this year.



Technicals

NZDUSD


NZDUSD has been moving sideways below a significant resistance at 0.70500. The pair failed to cross over this level but at the same time has been supported by the short-term MA20. RSI has reversed higher, suggesting a strengthening bullish momentum. The pair is expected to test another firm resistance at 0.71000.

Trade suggestion

Buy Stop at 0.70500, Take profit at 0.71000, Stop loss at 0.70300



USDJPY

As can be seen from the price chart, the pair USDJPY has breached the 50.0% Fibonacci retracement. Under the pressure from both the long-term and short-term MAs, the pair looked set to fall lower to test a support at 110.500. While RSI is nose-diving, ADX is edging higher with a widening gap between the –DI and +DI lines.

Trade suggestion

Sell Stop at 111.000, Take profit at 110.500, Stop loss at 111.200



GOLD


Gold retest a resistance at 1263.00 – the level it has to reverse lower on May 18th and 23rd. The price action has been trapped between this resistance and a support at 38.2% Fibonacci retracement. With the support from two MAs and the RSI index which has risen to as high as 63.81, the precious metal is expected to surge higher and break out of the current trading range, attempting the level 1270.00

Trade suggestion

Buy Stop at 1264.00, Take profit at 1270.00, Stop loss at 1261.00



DAX

Germany’s DAX 30 index gapped down on Friday, falling below a support at 12600.00. The stock benchmark index failed to cross over a couple of MAs and has been depressed by these two dynamic resistances. RSI is edging lower, indicating a strong bearish force in the market. The price is anticipated to test a support at 12500.00.

Trade suggestion

Sell Stop at 12560.00, Take profit at 12500.00, Stop loss at 12590.00

 

[CSFX.Support]

Hit by YouGov Poll and Disappointing Data, Sterling Extends Downbeat Moves Versus Dol

Hit by YouGov Poll and Disappointing Data, Sterling Extends Downbeat Moves Versus Dollar

Sterling continued to edge lower versus the greenback on Friday, hit by an unexpected poll result which came on the heels of disappointing economic data on Thursday.

A YouGov poll released late Thursday showed a dramatic narrowing of the gap between the Conservatives (43 percent) and the Labour Party (38 percent). In previous polls conducted earlier this month, the gap has been as high as 24 points.

The Pound lost another 0.4 percent against its American counterpart after having sunk by 0.3 percent on Thursday following ONS data that showed Britain’s economy’s growth rate slowed more than previously reported in the first quarter of this year.

According to the Office for National Statistics, the U.K. GBP grew just 0.2% in the first quarter of 2017, a pace that was down even more sharply than first thought. This also marked a considerable decline compared to the 0.7% growth in the final three months of 2016.

On Friday, the U.S. Bureau of Economic Analysis is scheduled to publish GDP data for the last quarter, which is expected to show the world’s largest economy expanded by 0.9 percent in the three-month period through March.

Data on Core Durable Goods Orders for April will also be released. Economists anticipate a reversal compared to the previous month. Particularly, total value of new purchase orders placed with manufacturers for durable goods, excluding transportation items, is predicted to advance by 0.4 percent on a monthly basis in April.

Trade suggestion

Sell Stop at 1.28800, Take profit 1.28400, Stop loss at 1.29000

 

[CSFX.Support]

Costco Trade Idea by Capital Street FX

Costco Shares Advance Following Above-expectation Third-Quarter Earnings

Shares of Costco Wholesale Corp. rose more than 1.8 percent in after-hours trading on Thursday after second largest retailer in the world posted fiscal third quarter earnings above expectations.

The warehouse club company reported net income in its most recent quarter reached $700 million, or $1.59 per share, up from $545 million, or $1.24 per share, in the same period last year.

Stripping out one-time items, earnings of the Washington-based company came to $1.40 per share in the three-month period ending May 7, topping analysts’ expectation for earnings of $1.31 per share.

Revenue was reported to advance by 8% to $28.22 billion, from $26.15 billion last year. The result fall short of market forecast calling for sales of $28.6 billion.

Costco’s comparable-store sales rose 5% in the quarter. Analysts had predicted a rise of 4%.

Trade suggestion

Buy Stop at 178.00, Take profit 180.00, Stop loss at 177.00

 

[CSFX.Support]

GBP/CHF signal by Capital Street FX

From GMT 09:00 26/05/2017
Till GMT 21:00 26/05/2017

Sell at 1.24900
Take profit at 1.24400
Stop loss at 1.25100

 

[CSFX.Support]

Daily Report on May 29, 2017 by Capital Street FX

Daily Report on May 29, 2017



Asian shares advanced on Monday amid low trading volume as some markets closed. Shrugging off a North Korean missile launch, South Korea's KOSPI index jumped 0.4 percent to touch a fresh record high. The stock benchmark index was on track for its seventh straight day of gains.

Meanwhile, Tokyo shares were buoyed higher on the back of a weak Japanese yen which gave up early gains. The Topix index advanced 0.3 percent and Japan's Nikkei edged up 0.2 percent. While The Hang Seng index increased 0.2 percent, Australia’s S&P/ASX 200 Index fell 0.5 percent.

U.S. markets will be closed on Monday for Memorial Day and UK banks will be closed in observance of the Spring Bank Holiday. China's markets are also closed on Monday and Tuesday in observance of the Dragon Boat Festival.

Crude oil prices dropped on Monday due to a relentless rise in U.S. drilling. According to a report released by the oilfields-services company Baker Hughes on Friday, the US oil-rig count rose by two to 722 last week. U.S. drillers have now added rigs for 19 straight weeks, sending the figure to U.S. drillers have now added rigs for 19 straight weeks.



Technicals

EURAUD

EURAUD has been tracing an uptrend which brought its price action above both long-term and short-term MAs. The market has entered the bullish zone while the gap between the +DI line and –DI line has been widened, which indicates a strong bullish momentum. The pair is expected to test a resistance at 1.50900.

Trade suggestion

Buy Stop at 1.50400, Take profit at 1.50900, Stop loss at 1.50200



GBPUSD

GBPUSD rebounded from a one-month low at as low as 1.27800. Sharp down moves sent the market into an oversold territory last week and the price is experiencing a correction. The downtrend has weakened, as indicate by ADX index that fell to 37.29. A resistance for the pair to test is at 1.28800.

Trade suggestion

Buy Stop at 1.28400, Take profit at 1.28800, Stop loss at 1.28200



Natural Gas

Natural gas has been trading sideways around the level at 3.232 after gapped down on Monday. The price, which has been under downward pressure exerted by two MAs, fell below the 50.0% Fibonacci. With the RSI index has been as low as 35.38, further declines are expected.

Trade suggestion

Sell Stop at 3.225, Take profit at 3.175, Stop loss at 3.250



BRENT

Brent crude has been trading in a narrow range around the level 52.00. As can be seen from the price action, the short-term MA20 has crossed over the long-term MA50 from above, suggesting a reversal into a downtrend. As indicated by the RSI index which is at 44.02, the market has been stuck in the bearish zone, signaling further down moves.

Trade suggestion

Sell Stop at 51.90, Take profit at 51.00, Stop loss at 52.30

 

[CSFX.Support]

EUR/NZD signal by Capital Street FX

From GMT 05:00 29/05/2017
Till GMT 21:00 29/05/2017

Sell at 1.57900
Take profit at 1.56900
Stop loss at 1.58400

 

[CSFX.Support]

Daily Report on May 30, 2017 by Capital Street FX

Daily Report on May 30, 2017



Asian equities drifted on Tuesday with thin trading as several markets closed for holidays. Asia-Pacific shares outside Japan dropped 0.3 percent, following holidays in the U.S. and Britain overnight. Markets in Hong Kong and China are shut for holiday while equities in Japan retreated as the yen strengthened. Japan’s Topix fell 0.3 percent on the back of the yen that added 0.4 percent versus the dollar.

Data released earlier on the day showed Japan’s jobless rate remained at the lowest level in more than two decades last month. However, household spending continued to decline in April, as stated by Tokyo’s Statistics Bureau. In April, the headline figures dropped another 1.4 percent on a yearly basis after having declined in three previous months.

South Korea’s Kospi index lost 0.5 percent while Australia’s benchmark gauge was little changed.

The Euro dropped versus its American counterpart on Tuesday amidst rising concerns over Concerns about a Greek bailout, early Italian elections and comments by the European Central Bank governor that reiterated the need for "substantial" stimulus. The single currency, which was on course for dropping for a fourth straight session, fell 0.4 percent to trade at 1.1125 against the dollar on Tuesday - the lowest level since May 19th.

Likewise, Sterling headed back toward a three-week low of $1.2775 touched on Friday, shedding 0.2 percent against dollar after the lastest poll showed British Prime Minister Theresa May's lead over the opposition Labour Party dropped to 6 percentage points.



Technicals

NZDUSD


As can be easily seen from the price chart, the pair NZDUSD has been supported consistently by the short-term MA20. The price rebounded from this dynamic support and headed higher in an attempt to test a resistance at 0.71000. RSI has edged higher to as high as 57.10, suggesting a strengthening uptrend.

Trade suggestion

Buy Stop at 0.70600, Take profit at 0.71000, Stop loss at 0.70400



BRENT


Brent crude prices reversed lower after hitting a firm resistance at 52.60 and a dynamic support that is the short-term MA20. Under the downward pressure from two MAs hanging above the price, the commodity is expected the test a support at 23.6% Fibonacci retracement. RSI remained under the 50 line, signaling further downtrend.

Trade suggestion

Sell Stop at 52.00, Take profit at 51.00, Stop loss at 52.50



Natural Gas


Natural Gas price extended its down moves after having gapped down on Monday. The commodity has fallen into a consolidation while heading towards a significant support at 3.170. RSI which is at as low as 31.21 indicates a dominating bearish force in the market.

Trade suggestion

Sell Stop at 3.200, Take profit at 3.170, Stop loss at 3.215



DAX


Germany’s DAX index has been under downward pressure exerted by two MAs that are lingering above the price action. RSI retreated after having failed to move past the 50 line, suggesting a re-emerging bearish momentum. The stock benchmark index is likely to test a support at 12500.00.

Trade suggestion

Sell Stop at 12580.00, Take profit at 12500.00, Stop loss at 12620.00

 

[CSFX.Support]

EURUSD Trade Idea by Capital Street FX

Weighed by Uncertainties in the Eurozone, Euro to Edge Lower For a Fourth Straight Session Versus Dollar

The Euro dropped versus its American counterpart on Tuesday amidst rising concerns over Concerns about a Greek bailout, early Italian elections and comments by the European Central Bank governor that reiterated the need for “substantial” stimulus.

The single currency, which was on course for dropping for a fourth straight session, fell 0.4 percent to trade at 1.1125 against the dollar on Tuesday – the lowest level since May 19th. The Euro was weighed down partly due to Greece’s financial situation concerning a deal on debt relief measures.

Greece’s finance minister on Monday said that the deal should be reached at the next meeting of euro zone finance ministers in June in order to help the country return to bond markets.

In Italia, former Prime Minister Matteo Renzi on Sunday stated that Italy’s next election should be held at the same time as Germany’s which is scheduled for September. The comments pulled the euro lower as it led to a selloff in Italian government debt on Monday.

Adding to downward pressure on the Euro, ECB President Mario Draghi repeated the need for “substantial” stimulus amid subdued inflation.

Later in the day, the Euro zone is scheduled to release data on German Prelim CPI while the U.S. is to report on personal income and expenditure along with data on consumer confidence for April, which are all predicted to advance compared to the previous month on a monthly basis.

Trade suggestion

Sell Stop at 1.11250, Take profit 1.10800, Stop loss at 1.11450

 

[CSFX.Support]

GBP/JPY signal by Capital Street FX
From GMT 09:45 30/05/2017
Till GMT 21:00 30/05/2017
Buy at 142.900
Take profit at 143.700
Stop loss at 142.500


GBP/NZD signal by Capital Street FX
From GMT 17:00 30/05/2017
Till GMT 21:00 30/05/2017
Sell at 1.81000
Take profit at 1.79500
Stop loss at 1.81700

 

[CSFX.Support]

Daily Report on May 31, 2017 by Capital Street FX

Daily Report on May 31, 2017



Asian shares inched lower on Wednesday with the Shanghai Composite wiping out almost all of its earlier gains. China reported official manufacturing PMI for May that reached 51.2, steady with 51.2 in April and better than a median estimate of 51. The non-manufacturing PMI hit 54.5, up from a level last at 54.0 in April. The private manufacturing PMI from Caixin will be released on Thursday.

Reversing lower following two days of gains, Japan’s Topix fell 0.3 percent. The Hong Kong’s Hang Seng index and Hong Kong’s Hang Seng both shed 0.1 percent. By contrast, Australia’s S&P/ASX 200 index added 0.2 percent and South Korea’s Kospi index edged 0.1 percent higher.

Crude oil futures prices edged lower on Wednesday, falling for a third session in a row amidst concerns over rising output from Libya which came on the heels of increasing U.S. production. As stated by Libya's state-run National Oil Corporation, the country’s oil production is expected to rise to 800,000 barrels per day (bpd) this week and boost its exports as a result.

According to market sources, Libya has already shipped out an average of 500,000 bpd of crude oil so far this year, which is nearly as twice as 300,000 bpd shipped on average in 2016.

Later on Wednesday, the American Petroleum Institute (API) is scheduled to publish its estimates of U.S. crude and refined product inventories. Meanwhile, official data from the Energy Information Administration will be released on Thursday. Both come out one day later than usual due to a holiday on Monday.



Technicals

EURGBP


EURGBP has received huge support from two MAs lingering below the price action. The uptrend is strengthening, as indicated by a widening gap between the +DI and –DI lines in the ADX chart and a soaring RSI index. The currency pair is likely to test the highest level since mid-March at 0.87850.

Trade suggestion

Buy Stop at 0.87300, Take profit at .87850, Stop loss at 0.87100



NZDUSD

NZDUSD rebounded higher after having fallen into a consolidation at nearly three-month highs at 0.71000. With upward support from the short-term MAs, the pair may attempt a resistance at 23.6% Fibonacci retracement. Rising ADX and RSI indices confirm the extended uptrend.

Trade suggestion

Buy Stop at 0.71000, Take profit at 0.71600, Stop loss at 0.70700



WTI

As can be seen from the price chart, WTI crude price has been under downward pressure from two MAs that are hanging above the price action. The commodity price is testing yesterday’s lowest level and may fall further to reach a significant support at 23.6% Fibonacci retracement.

Trade suggestion

Sell Stop at 49.10, Take profit at 48.50, Stop loss at 49.40



AUDNZD

AUDNZD has been tracing a sharp downtrend that sent the pair to retest nearly four-month lows at 1.04900. Under downward pressure from the short-term MA20, the pair may have to drop lower to test a support at 1.04200. RSI index has fallen to as low as 33.13, suggesting further declines.

Trade suggestion

Sell Stop at 1.04800, Take profit at 1.04200, Stop loss at 1.05100

 

[CSFX.Support]

Gold Trade Idea by Capital Street FX

Gold Advances On Weakening Dollar and Losses in Banking Shares

Gold futures prices rose on Wednesday after edging lower for two consecutive trading days. The precious metal gained on the back of weak U.S. dollar and stock markets that headed south.

August gold jumped nearly 0.4 percent to trade around $1267.00 per barrel.

U.S. stock-index gauges traded lower with all three major equity benchmark in the negative territories, weighed down by bank stocks. Banks equities, led by losses in shares of Goldman Sachs Group Inc., fell across the board after J.P. Morgan Chase & Co.’s CFO claimed that trading is down about 15% in the second quarter. The financial sector lost 1.2 percent.

Meanwhile, the greenback weakened against its major rivals. The U.S. dollar index, which measures the currency against a half-dozen rivals, dropped 0.4 percent. A weak greenback makes gold, which is quoted in dollar, more affordable for buyers holding other currencies.

Trade suggestion

Buy Stop at 1268.00, Take profit 1274.00, Stop loss at 1265.00

 

[CSFX.Support]

Crude Trade Idea by Capital Street FX

Mounting Output from Libya Weighs Down Crude Oil Futures

Crude oil futures prices edged lower on Wednesday, falling for a third session in a row amidst concerns over rising output from Libya which came on the heels of increasing U.S. production.

Brent crude futures lost more than 0.4 percent in Asian trading session compared to their last close to trade around $51.61 per barrel.

As stated by Libya’s state-run National Oil Corporation, the country’s oil production is expected to rise to 800,000 barrels per day (bpd) this week and boost its exports as a result. According to market sources, Libya has already shipped out an average of 500,000 bpd of crude oil so far this year, which is nearly as twice as 300,000 bpd shipped on average in 2016.

Libya’s mounting crude oil output, couple with soaring shale oil production in the U.S., undermined OPEC-led production cuts aimed at wiping out the current crude oil global glut.

Later on Wednesday, the American Petroleum Institute (API) is scheduled to publish its estimates of U.S. crude and refined product inventories. Meanwhile, official data from the Energy Information Administration will be released on Thursday. Both come out one day later than usual due to a holiday on Monday.

Market forecasts a crude oil inventory fall of 2.830 million barrels for the week ending May 26th.

Trade suggestion

Sell Stop at 51.60, Take profit 51.00, Stop loss at 51.90

 

[CSFX.Support]

EUR/CAD signal by Capital Street FX
From GMT 13:00 31/05/2017
Till GMT 21:00 31/05/2017

Buy at 1.51100
Take profit at 1.51600
Stop loss at 1.50900

 

[CSFX.Support]

Daily Report on June 01, 2017 by Capital Street FX

Daily Report on June 01, 2017



Global shares advanced with the Stoxx Europe 600 Index up 0.2 percent while the MSCI Asia Pacific Index rose 0.3 percent. Having jumped by 2.4 percent in May for its biggest monthly gain of the year, Japan’s Topix index rose another 1.1 percent in the first session of June. Sydney’s S&P/ASX 200 Index rose 0.2 percent and Hong Kong’s Hang Seng Index climbed 0.5 percent.

The pair AUDUSD spiked to as high as 0.74038 following Australia’s stronger-than-expected retail sales. According to the Australian Bureau of Statistics, the country’s retail sales rebounded sharply in April. Boosted by strong demand for food sold by cafes and restaurants and products in department stores, retail sales rose by 1.0 percent in April on a monthly basis. The reading was well above the 0.3 per cent rise expected by economists and outpaced March’s rate at 0.2 percent.

However, the currency reversed gains on the back of China’s manufacturing data release. However, China's manufacturing activity unexpectedly retreated for the first time in 11 months. The Caixin/Markit Manufacturing Purchasing Managers' index (PMI) fell to 49.6. A result below 50 demarcates growth and contraction on a monthly basis. The survey showed companies shed more jobs as demand weakened and shrinking factory prices dented profits.

Crude oil futures edged higher on Thursday following a sharp down move to a three-week low in the previous session. Data released by the American Petroleum Institute (API) showed U.S. crude inventories dropped by 8.7 million barrels at 513.2 million in the week to May 26. This was much larger than expectations for a decrease of 2.5 million barrels. The U.S. Energy Information Administration (EIA) is to report its data later in the day.



Technicals

GBPAUD

As can be seen from the price chart, GBPAUD reversed higher after having hit a dynamic support which is the short-term MA20. The pair has been supported by this support since yesterday which sent the price to one-week high at 1.74300. RSI rebounded after a correction, suggesting further advances.

Trade suggestion

Buy Stop at 1.73700, Take profit at 1.74300, Stop loss at 1.73400



USDCAD

USDCAD has breached a significant support at 38.2% Fibonacci level but the pair is facing the long-term MA50. A crossover from above is expected. In the event of further down moves, the currency pair may test a strong support at 1.34300. RSI has fallen to as low as 43.74, confirming the downtrend.

Trade suggestion

Sell Stop at 1.34750, Take profit at 1.34300, Stop loss at 1.34950



GBPUSD


GBPUSD’s price action has crossed over both short-term and long-term moving averages following a downtrend from as high as 1.29200. RSI index dropped back below the 50 level, indicating a strengthening bearish momentum. A support at 1.27900 is within the sight.

Trade suggestion

Sell Stop at 1.28500, Take profit at 1.27900, Stop loss at 1.28800



CAC 40 Index

CAC 40 index has been trading in a narrow range with its price action twisting with a couple of moving averages. The price crossed over these MAs again with strong up moves. Both RSI and ADX indices are rising, suggesting a dominating bullish force in the market which can send the index to the highest level since May 25th.

Trade suggestion

Buy Stop at 5325.00, Take profit at 5375.00, Stop loss at 5300.00

 

[CSFX.Support]

Crude Trade Idea by Capital Street FX

U.S. Crude Futures Edge Higher on Larger-than-expected Decline in U.S. Inventories

U.S. crude futures prices jumped more than 1 percent on Thursday after a weekly report showed domestic crude supplies fell more than expected last week.

U.S. West Texas Intermediate crude for July delivery jumped 1.24 percent to trade at 48.85 per barrel on the New York Mercantile Exchange.

Data from the U.S. Energy Information Administration released Thursday pointed to a decline of 6.4 million barrels in U.S. inventories in the week ended May 26. This was not only an eighth weekly drop in a row but also well above economists’ expectation calling for a drop of 2.7 million barrels.

According to the EIA’s report, gasoline stockpiles fell by 2.9 million barrels while distillate stockpiles added 400,000 barrels last week.

Trade suggestion

Buy Stop at 49.00, Take profit 49.70, Stop loss at 48.70

 

[CSFX.Support]

AUDUSD Trade Idea by Capital Street FX

Australian Dollar Pares Gains After China’s Manufacturing Activity Contracts

The Australian dollar dropped more than 0.4 percent versus the U.S. dollar in Asian trade on Thursday, reversing gains on the back of China’s manufacturing data release.

The pair AUDUSD spiked to as high as 0.74038 following Australia’s stronger-than-expected retail sales. According to the Australian Bureau of Statistics, the country’s retail sales rebounded sharply in April. Boosted by strong demand for food sold by cafes and restaurants and products in department stores, retail sales rose by 1.0 percent in April on a monthly basis.

The reading was well above the 0.3 per cent rise expected by economists and outpaced March’s rate at 0.2 percent.

However, China’s manufacturing activity unexpectedly retreated for the first time in 11 months. The Caixin/Markit Manufacturing Purchasing Managers’ index (PMI) fell to 49.6. A result below 50 demarcates growth and contraction on a monthly basis. The survey showed companies shed more jobs as demand weakened and shrinking factory prices dented profits.

The weak figure, which extended a streak of declines to three months starting in March, was well below April’s 50.3 and economists’ forecast of 50.1

Later on Thursday, ADP nonfarm payrolls report and the weekly report on initial jobless claims will be published, followed by data on non-manufacturing PMI released by the Institute for Supply Management.

Trade suggestion

Sell Stop at 0.74000, Take profit 0.73600, Stop loss at 0.74200