Daily Market Analysis by CapitalStreetFX

[CSFX.Support]

AUD/NZD signal by Capital Street FX

From GMT 03:40 01/06/2017
Till GMT 21:00 01/06/2017

Sell at 1.04500
Take profit at 1.04000
Stop loss at 1.04700

 

[CSFX.Support]

Daily Report on June 02, 2017 by Capital Street FX

Daily Report on June 02, 2017



Asian share jumped to their best levels in more than two years on Friday after U.S. stock benchmark indices closed at all-time highs in Thursday session. MSCI's broadest index of Asia-Pacific shares outside Japan climbed 0.6 percent, led by gains in equities of Japan and South Korea. Indeed, Japan’s Topix index rose 1 percent while the Nikkei 225 advanced by 1.2 percent.

By contrast, the Shanghai Composite declines for a second day, losing 0.1 percent.

Australia’s S&P/ASX 200 Index and South Korea’s Kospi index found them on a strong uptrend with each adding at least 0.8 percent. Up moves in global stocks and the U.S. dollar were boosted by larger-than-expected private American hiring data. The dollar held on gains after ADP reported private payrolls grew by 253,000 last month. The result comfortably beat analysts' median forecast of an 185,000 increase.

The nonfarm payrolls report is scheduled to come out on Friday, which is expected to show that the U.S. economy created 185,000 jobs last month.

Confidence in the world’s largest economy was bolstered further following the release of data on U.S. factory activity. The Institute for Supply Management reported its barometer for domestic manufacturing activity jumped to 54.9 last month from 54.8 in April. Economists had expected a rise to 52.8.

Crude oil prices weakened on Friday

WTI crude oil dropped 0.5 percent after adding 0.1 percent in the previous session. It’s on course to fall 3.4 percent this week. Oil prices dropped nearly 1 percent in early Asian trade on Friday, dragged down by ongoing concerns over a global glut in crude supply despite a bigger-than-expected draw in U.S. crude inventories.

Crude stockpiles were down to 6.4 million barrels in the week to May 26, beating analyst expectations for a decrease of 2.5 million barrels.

Although a sharp fall of U.S. crude inventories could be seen as a supportive factor to oil prices, U.S. crude production rose to 9.35 million bpd last week, up nearly 500,000 bpd from a year ago.



Technicals

EURJPY


EURJPY fell into a consolidation again after having surged to as high as 125.230. However, with rising ADX and RSI indices which indicate a dominating bullish force in the market, the pair is expected to edge higher to as high as a significant level 125.800.

Trade suggestion

Buy Stop at 125.300, Take profit at 125.800, Stop loss at 125.100



USDJPY

USDJPY extended its up moves following a short correction. The pair crossed over both short-term and long-term MAs from below, which suggesting a strong uptrend. The pair is likely to attempt a firm resistance at 38.2% Fibonacci retracement.

Trade suggestion

Buy Stop at 111.700, Take profit at 112.100, Stop loss at 111.500



WTI

U.S. crude price has officially fallen below the support at 23.6% Fibonacci retracement. As can be seen from the price chart, the commodity price has been under pressure from two MAs hanging above the price action, especially from the short-term MA20. Crude price looked set to trade lower with the market plunging in the bearish zone, as indicated by low RSI index.

Trade suggestion

Sell Stop at 48.00, Take profit at 47.00, Stop loss at 48.50



COFFEE

Coffee prices fell below a firm support at 128.40 again after peaking below this level on May 25th. With downward pressure exerted from two MAs lingering above the price action, coffee price may extend its down moves to as low as 124.70. Further downbeat steps were confirmed by declining RSI index and a widening gap between –DI and +DI lines.

Trade suggestion

Sell Stop at 127.30, Take profit at 124.70, Stop loss at 128.50

 

[CSFX.Support]

Natural Gas Trade Idea By Capital Street FX

Natural Gas Futures Extend Downward Rally on Swelling U.S. Domestic Supplies

U.S. natural gas futures prices extended losses on Friday, heading for a decline for a fifth session in a row and on course for the biggest weekly drop since late-January.

Natural gas futures for July delivery were down nearly 0.6 percent in Asian trading hours on Friday, weighed down by data from the U.S. Energy Information Administration released on Thursday that showed domestic supplies rose more than expected.

According to the report, natural gas storage in the U.S. added 81 billion cubic feet for the week ended May 26, topping analysts’ expectation calling for a rise of 74 billion cubic feet. Total stocks now stand at 2.525 trillion cubic feet, 225 billion cubic feet above the five-year average.

Trade suggestion

Sell Stop at 3.020, Take profit 2.950, Stop loss at 3.050

 

[CSFX.Support]

USD/CAD signal by Capital Street FX

From GMT 09:00 02/06/2017
Till GMT 21:00 02/06/2017

Buy at 1.35400
Take profit at 1.35900
Stop loss at 1.35200

 

[CSFX.Support]

Daily Report on June 05, 2017 by Capital Street FX

Daily Report on June 05, 2017



Asian shares failed to resume their upbeat moves even after U.S. shares reached fresh record highs last Friday. Japan’s Topix index pared losses, falling 0.2 percent following a drop of 0.6 percent in early trade. Meanwhile, Hong Kong’s Hang Seng fell 0.1 percent and the Shanghai Composite Index slipped 0.3 percent. Australia’s S&P/ASX 200 Index also fell into negative zone, losing 0.6 percent. By contrast, South Korea’s Kospi index added 0.1 percent.

Gold futures advanced on Monday on the back of a weakening dollar that has been weighed down by a weaker-than-expected U.S. employment report. The geopolitical risks which pressurized Asian stocks also caused investors to flock into safe-haven assets such as gold.

Gold added 0.34 percent in Asian morning session to trade around $1281.10 per barrel as the dollar languished near a seven-month low on Monday. The dollar index was last trading flat at 96.716, under pressure from data on U.S. jobs growth for May that showed the world’s largest economy only added 138,000 jobs in the reported month. The result fell well below forecast for a rise of 185,000 jobs.

Meanwhile, attacks in London over the weekend added concerns over geopolitical risks in the U.K. ahead of the country’s general election that will be held on Thursday. Recent polls showed a tighter gap between the Conservatives, led by Prime Minister Theresa May, and the Labour Party, under left-winger Jeremy Corbyn.

IMF Deputy Managing Director Mitsuhiro Furusawa on Monday said that more aggressive interest rate hikes in the U.S. that may trigger a "significant" dollar rise and increase the debt burden of Asian emerging economies which own large dollar-denominated borrowings. China's rapid domestic credit growth is also another risk that cloud Asia's economic outlook, according to the official.



Technicals

AUDNZD


AUDNZD reversed higher from four-month lows at around 1.03970 and brought its price action above both long-term and short-term MAs, suggesting a reversal into an uptrend from a previous sharp downtrend. The pair is expected to test a resistance at 61.8% Fibonacci retracement with RSI surging as high as 63.10.

Trade suggestion

Buy Stop at 1.04700, Take profit at 1.05300, Stop loss at 1.04400



AUDCAD


AUDCAD crossed over both short-term and long-term MAs from above, confirming a strong uptrend and liberating the price action from downward pressure exerted by two MAs. In the event of continual uptrend, the pair is expected to attempt a resistance at 61.8% Fibonacci retracement.

Trade suggestion

Buy Stop at 1.00500, Take profit at 1.00900, Stop loss at 1.00300



SILVER


Silver has fallen into a consolidation after having surged to the highest level since April 26th. The correction pulled the ADX down below 20, suggesting no clear trend in the market. However, as can be seen from the RSI chart, the bull is dominating and may send the price higher to a resistance at 17.700.

Trade suggestion

Buy Stop at 15.560, Take profit at 17.700, Stop loss at 15.000



Natural Gas

Natural gas gapped up on Monday but seems weak to maintain the bullish momentum. The commodity has just escaped from the oversold territory; however, the market has still been in the bearish zone with RSI index is at as low as 36.12. A support at 23.6% Fibonacci level is within the sight.

Trade suggestion

Sell Stop at 3.025, Take profit at 2.935, Stop loss at 3.070

 

[CSFX.Support]

Gold Trade Idea by Capital Street FX

Gold Soars To Six-Week Highs on Weak Dollar and Rising Geopolitical Risks

Gold futures advanced on Monday on the back of a weakening dollar that has been weighed down by a weaker-than-expected U.S. employment report. The geopolitical risks which pressurized Asian stocks also caused investors to flock into safe-haven assets such as gold.

Gold added 0.34 percent in Asian morning session to trade around $1281.10 per barrel as the dollar languished near a seven-month low on Monday. The dollar index was last trading flat at 96.716, under pressure from data on U.S. jobs growth for May that showed the world’s largest economy only added 138,000 jobs in the reported month. The result fell well below forecast for a rise of 185,000 jobs.

Gold jumped to the highest level since April 21st attacks in London over the weekend added concerns over geopolitical risks in the U.K. ahead of the country’s general election that will be held on Thursday. Recent polls showed a tighter gap between the Conservatives, led by Prime Minister Theresa May, and the Labour Party, under left-winger Jeremy Corbyn.

Trade suggestion

Buy Stop at 1282.00, Take profit 1288.00, Stop loss at 1279.00

 

[CSFX.Support]

Daily Report on June 06, 2017 by Capital Street FX

Daily Report on June 06, 2017



Asian stocks retreated following a drop in U.S. equities overnight. At the close in NYSE, all three major U.S. stock benchmarks lost at least 0.1 percent on the back of downbeat economic data and a slump in Apple shares following a rare downgrade. MSCI's broadest index of Asia-Pacific shares outside Japan shed 0.2 percent in early trade, retreating from a two-year high hit on Monday.

Weighed down by a strong Yen which soared 0.5 percent versus its American counterpart, Japan’s Topix index fell 0.6 percent while Japan's Nikkei 225 dropped 0.4 percent. Australia’s S&P/ASX 200 Index dropped 0.8 percent. By contrast, Hong Kong’s Hang Seng Index rose 0.2 percent and the Shanghai Composite Index added 0.1 percent.

South Korea is closed for a holiday.

The Australian dollar weakened against most of peers ahead of the latest rate review from the Reserve Bank of Australia. The RBA is scheduled to release its latest interest rate decision later in the day with markets forecasting no changes to the central bank’s record low interest rate of 1.50%. Data on Australia’s current account will also be published. Analysts expect a surplus of A$100 million for the first quarter.

Crude oil prices extended their downward rally to a third day in a row on Tuesday, hit by concerns over a political tension between Qater and several Arab states. Accusing Qatar of supporting for Islamist militants and Iran, Saudi Arabia, Egypt, the United Arab Emirates and some other Arab countries cut ties with Qatar. The action may weaken an agreement to hold back production in an attempt to prop up prices.



Technicals

EURJPY


EURJPY has been on a downtrend since it reversed lower from a significant resistance at 50.0% Fibonacci level. The sharp down moves brought the price action below two MAs, indicating a strong bearish momentum in the market. While the RSI index is heading lower, the ADX index is edging higher with a widening gap between the –DI and +DI lines, suggesting further downbeat moves.

Trade suggestion

Sell Stop at 123.700, Take profit at 123.000, Stop loss at 124.000



GBPJPY


GBPJPY retreated after having failed to break out of a dynamic resistance that is the long-term MA50. The pair is on course to retest one-month lows reached on May 31th with a market dominated by the bear. The pair is expected to attempt a firm support at 23.6% Fibonacci level.

Trade suggestion

Sell Stop at 141.800, Take profit at 140.800, Stop loss at 142.300



BRENT


Crude oil futures prices remained weak under downward pressure from two MAs hanging above the price action. The pair is testing a firm support at 49.22 which has restrained the pair from falling lower for the third time since Monday. With RSI remained low and edging-higher ADX, Brent crude price may inch lower to test another support at 48.30.

Trade suggestion

Sell Stop at 49.10, Take profit at 48.30, Stop loss at 49.50



Natural Gas


Natural Gas has fallen below a significant support at 38.2% Fibonacci level and continued to head downwards. The commodity’s price action has been weighed down by the short-term MA20. The RSI index has dropped into an oversold zone, signaling a correction. The price may reverse at the support at 2.900.

Trade suggestion

Sell Stop at 2.960, Take profit at 2.900, Stop loss at 2.990

 

[CSFX.Support]

FTSE 100 Trade Idea by Capital Street FX

U.K. Shares Decline Amidst Rising Concerns Ahead of The U.K. General Election

U.K. shares edged lower for a second session in a row on Tuesday amidst rising concerns ahead of the U.K. general election on Thursday and a strengthening Pound.

U.K. stock benchmark – the FTSE 100 index dropped more than 0.2 percent following a loss of 0.3 percent on Monday. Recent down moves caused the index to retreat further from a fresh record high reached last Friday.

A poll released late Monday by Survation showed the gap between May’s Conservative Party and the opposition Labour tightened to 1 point ahead of Thursday’s election, down from 16 points a month ago.

Additionally, the testimony of former Federal Bureau of Investigation Director James Comey about alleged Russian interference in U.S. affairs also kept investors cautious and diminished the appeal of risky assets. The dollar weakened versus most of its peers ahead of the testimony, indirectly boosted the British Pound higher.

The pound added more than 0.15 percent to touch a high of 1.29495, up from $1.2903 late Monday.

Trade suggestion

Sell Stop at 7500.00, Take profit 7470.00, Stop loss at 7515.00

 

[CSFX.Support]

EUR/AUD signal by Capital Street FX

EUR/AUD signal by Capital Street FX

From GMT 9:00 06/06/2017
Till GMT 21:00 06/06/2017

Sell at 1.49800
Take profit at 1.49300
Stop loss at 1.50000

 

[CSFX.Support]

Daily Report on June 07, 2017 by Capital Street FX

Daily Report on June 07, 2017



Asian shares struggled to find direction on Wednesday after major U.S. stock indexes closed lower on Tuesday. While Japanese equities slid for a third straight day, Chinese stocks advanced. Indeed, Japan’s Topix index fell 0.1 percent while the Shanghai Composite increased 0.8 percent.

Hong Kong’s Hang Seng index also inched higher, added 0.1 percent and stayed around 26,000 reached on Tuesday – the highest level since July 2015. In contrast, Australia’s S&P/ASX 200 Index shed 0.2 percent, falling to the lowest level since February. South Korea’s Kospi index also lost ground.

The Australian dollar traded higher in early Asia on Wednesday after first-quarter growth figures came out better-than-expected. The currency pair AUDUSD added more than 0.4 percent to trade around 0.75400 – the highest level since May 03rd. The pair also extended its upward rally to a fourth day in a row after the Aussie was boosted higher by upbeat economic data.

According to the Australian Bureau of Statistics, the country’s Gross Domestic Product (GDP) advanced by 0.3 percent in the three-month period to March in seasonally adjusted chain volume terms. Although the result was well below the 1.1% increase recorded in the first three months of the year, it beat analysts’ expectation calling for a rise of 0.2 percent.

The dollar plunged to seven-month lows overnight as investors flocked into safe-haven assets ahead of a trio of risk events in the next 48 hours. On Thursday, the European Central Bank’s policy meeting, Britain’s general election and former FBI chief James Comey’s testimony before the Senate Intelligence Committee will draw market attention and drive market sentiment.



Technicals

CADJPY


CADJPT reversed lower after a correction following a sharp downtrend that sent the price to more-than-three-week lows yesterday. Two MAs hanging above the price action have been still putting downward pressure on the price, on course to weigh down the pair further to test a support at 80.650. RSI index edged lower to as low as 32.80, indicating a dominating bearish force in the market.

Trade suggestion

Sell Stop at 83.300, Take profit at 80.650, Stop loss at 83.600



GBPJPY


GBPJPY pared earlier gains to trade lower, extending the downtrend after its price action broken below the long-term DMA50. RSI continued to edge lower while ADX index marched higher, which indicates a strengthening bearish force. In the event of further declines, the pair is expected to test a support at 140.100.

Trade suggestion

Sell Stop at 141.100, Take profit at 140.100, Stop loss at 141.600





BRENT


Brent crude futures prices crossed over the short-term MA20 yesterday but the bull appeared to not be strong enough to maintain its momentum. The price action is facing the MA20 again and may drop below this level. RSI retreated from the central line, indicating a strengthening bearish force in the market. A support at 48.45 is within the sight.

Trade suggestion

Sell Stop at 49.65, Take profit at 48.45, Stop loss at 50.20



COFFEE


Coffee future prices have been trapped in a slopping downtrend trading range since late-January. Yesterday, the commodity price reversed lower to retest one-year lows at 125.25 reached on June 02. Under the downward pressure exerted by the short-term MA20, the coffee price is expected to trade lower. Soaring RSI and ADX indices with a widening gap between –DI and +DI lines suggest further declines.

Trade suggestion

Sell Stop at 125.00, Take profit at 122.00, Stop loss at 126.50



CAC 40


France’s CAC 40 index extended its slide to a fourth session in a row on Wednesday and looked set to trade lower in an attempt to test a firm support at 5230.00. The stock benchmark index had to rebound after hitting this level twice since late April. RSI remained at low level while ADX index is inching higher, suggesting more declines.

Trade suggestion

Sell Stop at 5260.00, Take profit at 5230.00, Stop loss at 5275.00



DAX


Germany’s DAX 30 index is facing a dynamic support at the long-term MA50 after having crossed over the short-term MA20. Recent steeply down moves have brought the market into the bearish zone, as indicated by RSI index which fell below 50. The previous uptrend weakened with ADX index dropping to as low as 34.27. A support at 12530.00 is expected to be tested.

Trade suggestion

Sell Stop at 12650.00, Take profit at 12530.00, Stop loss at 12700.00

 

[CSFX.Support]

WTI Trade Idea by Capital Street FX

WTI Crude Futures Nose-Dive Following an Unexpected Sharp Rise in U.S. Inventories

U.S. crude oil futures prices dropped steeply in U.S. trading session on Wednesday following a weekly report that showed a large rise in U.S. inventories of the commodity.

U.S. West Texas Intermediate for July delivery plunged by more than 4 percent to trade around $45.90 per barrel on the New York Mercantile Exchange after data from the U.S. Energy Information Administration indicated that domestic crude supplies soared 3.3 million barrels last week.

The unexpected rise in U.S. crude oil stockpiles in the week ended June 2nd marked the first advance in the last nine weeks and contrasted with analysts’ forecast calling for a drop of 3.1 million barrels. The sharp rise raised concerns over U.S. domestic crude production that may surge to a record level next year, contributing to losses for oil.

Trade suggestion

Sell Stop at 45.90, Take profit at 45.00, Stop loss at 46.40

 

[CSFX.Support]

AUDUSD Market Outlook by Capital Street FX

Australian Dollar Jumps To One-Month Highs Following Upbeat GDP Data

The Australian dollar traded higher against its American counterpart in early Asia on Wednesday after first-quarter growth figures came out better-than-expected. Meanwhile, the greenback remained weak ahead of a big day on Thursday when the calendar features both highly-awaited political and economic events.

The currency pair AUDUSD added more than 0.4 percent in Asian morning session on Wednesday to trade around 0.75400 – the highest level since May 03rd. The pair also extended its upward rally to a fourth day in a row after the Aussie was boosted higher by upbeat economic data.

According to the Australian Bureau of Statistics, the country’s Gross Domestic Product (GDP) advanced by 0.3 percent in the three-month period to March in seasonally adjusted chain volume terms.

The growth rate in March quarter marked a sharply decline compared to the previous quarter, sending the annual pace of growth to the lowest level since late 2009. Indeed, year-on-year increase slowed to 1.7 percent – the weakest expansion rate since the third quarter of 2009.

Although the result was well below the 1.1% increase recorded in the first three months of the year, it beat analysts’ expectation calling for a rise of 0.2 percent.

Meanwhile, the dollar plunged to seven-month lows overnight as investors flocked into safe-haven assets ahead of a trio of risk events in the next 48 hours. On Thursday, the European Central Bank’s policy meeting, Britain’s general election and former FBI chief James Comey’s testimony before the Senate Intelligence Committee will draw market attention and drive market sentiment.

Comey’s testimony is expected to keep the U.S. dollar under pressure as the fired FBI director will testify about Russia’s alleged involvement in the U.S election as well as U.S. President Donald Trump’s alleged attempt to halt an investigation into former national security advisor Michael Flynn.


As can be seen from the price chart, the pair is testing a firm resistance at 0.75400 – the level it had to give up its up moves and reverse lower five weeks ago. After having breached a significant level at 38.2% Fibonacci level on Monday, the price action continue to cross over both the long-term and short-term MAs from below, suggesting a strong bullish momentum in the market. RSI and ADX indices are rising higher, signalling further advances. A resistance at 23.6% Fibonacci level is within the sight.

Trade suggestion

Buy Stop at 0.75400, Take profit at 0.75900, Stop loss at 0.75200

 

[CSFX.Support]

EUR/NZD signal by Capital Street FX

EUR/NZD signal by Capital Street FX

From GMT 05:30 07/06/2017
Till GMT 21:00 07/06/2017

Sell at 1.56900
Take profit at 1.56300
Stop loss at 1.57200

 

[CSFX.Support]

Daily Report on June 08, 2017 by Capital Street FX

Daily Report on June 08, 2017



Asian shares inched lower on Thursday as investors were reluctant to add any big positions in risky assets ahead of key events scheduled to come out later in the day. The MSCI Asia Pacific Index lost more than 0.2 percent, led by declines in stocks of energy producers.

While Hong Kong’s Hang Seng and the Shanghai Composite Index were little changed, South Korea’s Kospi index lost 0.3 percent after North Korea launched a series of short-range missiles early Thursday. Thanks to the dollar's rebound against the yen, Japanese equities advanced. The Topix index rose 0.1 percent while Japan's Nikkei N225 added 0.3 percent.

According to Japan’s Cabinet Office, the economy grew less than the government initially reported for the first quarter. In the three-month period to March, Japan's economy - the world's third largest - expanded at an annualized rate of 1.0 percent, well below the preliminary estimate of 2.2 percent growth.

Australia’s S&P/ASX 200 Index fell 0.1 percent after the Australian Bureau of Statistics on Thursday reported the country’s trade balance to drop to a surplus of $0.56 billion in April from a surplus of $3.1 billion recorded in March. As stated by the data, while imports only shed 1 percent, exports plunged by 8 percent in April, leaving the result well below expectation calling for a surplus of $1.95 billion.

Crude oil futures prices pared losses after having nose-dived more than 5 percent on Wednesday. The sharp down move came after the Energy Information Administration reported an unexpected rise in U.S. crude stockpiles.



Technicals

NZDJPY



NZDJPY has been trading sideways to higher around the 38.2% Fibonacci retracement. The pair has breached last Friday’s high of 79.100 and seems to break out of its currently narrow trading range. With support from rising RSI and ADX index which indicates a strong bullish force in the market, the pair is expected to test a resistance at 79.600.

Trade suggestion

Buy Stop at 79.200, Take profit at 79.600, Stop loss at 79.000



EURJPY


EURJPY failed to break out of a resistance which is the short-term MA20. The pair had to give up its upbeat moves to reverse lower after hitting this stance in early trade. The support at 122.600 is expected to be tested again. This is a strong level which has forced the price to rebound on May 18th and June 07th.

Trade suggestion

Sell Stop at 123.300, Take profit at 122.600, Stop loss at 123.700



GBPUSD


With the support from two MAs that are lingering below the price, GBPUSD has been tracing an uptrend which has brought its price action above a firm resistance at 23.6% Fibonacci level. A strong handle at 1.30400 is within the sight as both RSI and ADX indices are edging higher, indicating a strong bullish momentum.

Trade suggestion

Buy Stop at 1.29800, Take profit at 1.30400, Stop loss at 1.29500



WTI


WTI crude price has fallen into a consolidation following a sharp down move on Wednesday that helped the price break out of a support at 46.70. The commodity fell to another support at 45.80 and is struggling at this level. As can be seen from the price chart, two MAs hanging below the price action are exerting downward pressure on the price, not to mention a low RSI that indicates a dominating bearish market. The price is expected to drop lower to test a significant level at 38.2% Fib.

Trade suggestion

Sell Stop at 45.75, Take profit at 44.80, Stop loss at 46.10



Natural Gas


Natural gas prices failed to cross over a dynamic resistance which is the long-term MA50. The commodity price fell below the 38.2% Fibonacci retracement and also below the short-term MA20, suggesting a reversal into a downtrend. RSI has drifted to as low as 41.02 while the ADX index headed lower, indicating a weakening uptrend. A support at 2.930 is expected to be tested.

Trade suggestion

Sell Stop at 3.000, Take profit at 2.930, Stop loss at 3.030

 

[CSFX.Support]

Copper Market Outlook by Capital Street FX

Supported by Suspended Operations in Chile’s Mines and China Trade Balance, Copper Soars

Copper futures prices rose for second day in a row on Thursday after upbeat Chinese trade balance and reports that mines in Chile – the world’s biggest copper exporter – have suspended key operations due to heavy rains.

Copper futures for July delivery added more than 0.5 percent after the Customs General Administration of China reported that the country’s overseas shipments accelerated in May compared to that of a year ago.

As stated by the data released on Thursday, China’s exports jumped 8.7 percent in May in dollar terms while imports soared 14.8 percent, bringing the trade balance to $40.81 billion dollars. China’s trade surplus in May widened from April’s $38.05 billion.

In yuan terms, exports climbed 15.5 percent and imports surged 22.1 percent, leaving a trade surplus of 281.6 billion yuan. Thanks to an improvement in global demand, both figures beat expectations. Copper prices increased as a result as the data showed a strong appetite for China’s imports of industrial commodities which helps boost resources prices worldwide.

Meanwhile, Reuters on Wednesday reported that operations in some locations in Chile were halted after the country’s northern area was hit by snowstorms. The harsh weather condition caused Chile’s emergency service Onemi to trigger its highest ‘red alert’ warning and to implement safety protocols in the region of Antofagasta.

BHP Billiton’s Escondida – the world’s biggest copper mine – said all of its operations had been suspended due to heavy snow. Antofagasta PLC and state-owned mining company Codelco also announced interruptions to productions at their mines after heavy rains lashed the high altitude desert region of Antofagasta.


Copper rebounded strongly from a couple of moving averages. The commodity has officially escaped from the previous downtrend which was under downward pressure from two MAs. As can be seen from RSI index chart, the index did not only breach the central line but also surged to as high as 66.37, indicating a strong bullish momentum in the copper market. The commodity price is likely to extend its up moves. A resistance at 2.5930 is within the sight.

Trade suggestion

Buy Stop at 2.5700, Take profit at 2.5930, Stop loss at 2.5600

 

[CSFX.Support]

SILVER/USD signal by Capital Street FX
From GMT 15:30 08/06/2017
Till GMT 21:00 08/06/2017
Sell at 17.390
Take profit at 17.290
Stop loss at 17.440


EUR/GBP signal by Capital Street FX
From GMT 17:00 08/06/2017
Till GMT 21:00 08/06/2017
Sell at 0.86600
Take profit at 0.86200
Stop loss at 0.86800

 

[CSFX.Support]

Daily Report on June 09, 2017 by Capital Street FX

Daily Report on June 09, 2017



U.K. stocks jumped the most among developed markets while the Sterling slumped against all of its major rivals on Friday after the unexpected election result for Prime Minister Theresa May, which left no single party with a clear claim to power, threw Britain into fresh political turmoil and raised concerns over the future of the country, especially the path of leaving the European Union.

The FTSE 100 Index rallied 1.2 percent, the most since April while the Stoxx Europe 600 Index added 0.3 percent. In Asian session, Japan’s Topix index inched 0.1 percent higher while the Nikkei 225 Stock Average soared 0.5 percent. Singapore’s Straits Times Index also added 0.5 percent while South Korea’s Kospi index surged 0.8 percent.

By contrast, Hong Kong’s Hang Seng index and the Hang Seng China Enterprises Index lost 0.2 percent and 0.6 percent, respectively. The Shanghai Composite added 0.3 percent after data showed China’s producer price gains moderated in May. China’s producer price index was reported to rise 5.5 percent last month from a year earlier, following a rise of 6.4 percent in April. Consumer price index climbed 1.5 percent.

The pound plunged more than 2.2 percent versus the U.S. dollar, tumbling to the lowest level since April 18 on the back of a sharp drop for the ruling Conservative Party and gains for the opposition Labour Party. A hung parliament was officially produced after the Conservatives only won 315 seats out of 650 seats, short of the 326 seats needed for a majority.

With Brexits talks are due to start in less than two weeks, it remains unclear who would form the next government while markets fear that negotiations on leaving the European Union will be delayed.



Technicals

USDCHF


USDCHF has broken out of a significant level at 50.0% Fibonacci retracement after having brought its price action above two MAs. As can be seen from the index chart, RSI index kept on surging, indicating a strengthening uptrend. ADX is also marching higher, signaling further advances.

Trade suggestion

Buy Stop at 0.97200, Take profit at 0.97700, Stop loss at 0.97000



EURAUD

EURAUD is facing a firm support at 1.48300 where it had to reverse higher earlier this week. With RSI at as low as 32.09 and pointing down, the market seems to be dominated by the bearish force. Under downward pressure from two MAs, the pair is expected to breach this stance and test another strong support at 38.2% Fib.

Trade suggestion

Sell Stop at 1.48200, Take profit at 1.47600, Stop loss at 1.48500



WTI


WTI crude prices edged lower on Friday, extending their downward rally to a third day in a row. The commodity remained weak under the pressure from two MAs that are hanging above the price action. While RSI index has fallen into the oversold zone, ADX index is rallying with a widening gap between the –DI and –DI lines, crude price is expected to head lower towards a support at 38.2% Fib.

Trade suggestion

Sell Stop at 45.30, Take profit at 44.30, Stop loss at 45.80



SILVER


Silver reversed lower after hitting a dynamic resistance at the short-term MA20 following a correction on Thursday when the metal price action fell below both MAs. A support at 17.150 is within the sight with both indices confirming the downtrend. While the ADX is heading higher, RSI is sliding to as low as 35.87.

Trade suggestion

Sell Stop at 17.300, Take profit at 17.150, Stop loss at 17.370

 

[CSFX.Support]

GBPUSD Trade Idea by Capital Street FX

British Pound Plunges Sharply In The Aftermath of the Shocking Election Vote

Sterling slumped against all of its major rivals on Friday after the unexpected election result for Prime Minister Theresa May, which left no single party with a clear claim to power, threw Britain into fresh political turmoil and raised concerns over the future of the country, especially the path of leaving the European Union.

The pound plunged more than 2.2 percent versus the U.S. dollar, tumbling to the lowest level since April 18 on the back of a sharp drop for the ruling Conservative Party and gains for the opposition Labour Party.

A hung parliament was officially produced after the Conservatives only won 315 seats out of 650 seats, short of the 326 seats needed for a majority. Opposition Labour snapped up 261 seats, followed by the Scottish National Party at 35 and the Liberal Democrats at 12 seats.

A hung parliament, where no single party has a majority of seats in the House of Commons, is weighing down the British Pound as the ruling Conservative Party will have no choice but relying on smaller parties to govern if it does not want their legislation to be voted down.

With Brexits talks are due to start in less than two weeks, it remains unclear who would form the next government while markets fear that negotiations on leaving the European Union will be delayed.

Trade suggestion

Sell Stop at 1.27000, Take profit at 1.26400, Stop loss at 1.27300

 

[CSFX.Support]

GBP/CHF signal by Capital Street FX

From GMT 06:30 09/06/2017
Till GMT 21:00 09/06/2017

Sell at 1.22900
Take profit at 1.22300
Stop loss at 1.23200

 

[CSFX.Support]

S&P 500 Trade Idea by Capital Street FX

U.S. Shares Tumble For a Second Day As Tech Stocks Extend Losses

U.S. stock market stumbled on Monday, losing ground for a second straight session as sharp declines in shares of technology companies weighed down overall performance.

While the tech-heavy Nasdaq Composite Index dropped 1.05 percent following a decline of 1.8% on Friday, the S&P 500 index shed more than 0.4 percent with seven out of the benchmark’s 11 sectors trading lower.

The selloff in technology stocks showed no signs of slowdown with shares of the top-five tech leaders which are Facebook, Amazon , Apple, Microsoft and Alphabet all in negative zone. Especially, shares of Apple plunged 3.66 percent after their shares were downgraded for the second time in a week.

The technology sector led losses, down 1.2%, while telecom and energy shares were up 0.9%.

Trade suggestion

Sell Limit at 2425.00, Take profit at 2415.00, Stop loss at 2430.00