Daily Market Analysis by CapitalStreetFX

[CSFX.Support]

GBPUSD Trade Idea by Capital Street FX

Brexit Talks Around The Corner, Sterling Extends Downward Rally Amidst Rising Political Turmoil

British Pound slumped against all of its peers on Monday, extending its losses on Friday further as the currency was weighed down by concerns over the next leader of the country.

The pair GBPUSD lost more than 0.5 percent to trade around $1.2681, heading towards the lowest level since April 18th reached last Friday. Sterling lost ground amidst political turmoil for U.K. Prime Minister Theresa May. The PM left her Conservative Party without control of the House of Commons after Thursday’s snap election as it failed to win the minimum 326 seats needed to hold a parliamentary majority.

A hung parliament left investors cautious about the U.K.’s path on Brexit negotiations as the talks are scheduled to begin in a week. According to latest reports, May is seeking a coalition with Northern Ireland’s Democratic Unionist Party, which holds 10 seats, to form a new government. However, no agreement has been struck yet.

The prime minister herself is facing calls to step down from her post as she could not strengthen her party’s hand by calling the snap election mid-April. PM May is scheduled to have a meeting with lawmakers on Monday.

Trade suggestion

Sell Stop at 1.26700, Take profit at 1.26300, Stop loss at 1.26900

 

[CSFX.Support]

AUD/CAD signal by Capital Street FX

From GMT 03:00 12/06/2017
Till GMT 21:00 12/06/2017

Sell at 1.01050
Take profit at 1.01650
Stop loss at 1.01250

 

[CSFX.Support]

Daily Report on June 13, 2017 by Capital Street FX

Daily Report on June 13, 2017



Global shares advanced on Tuesday thanks to an ease in the selloff in technology shares. The Stoxx Europe 600 Index climbed 0.4 percent, reversing higher from a decline of 0.1 percent on Monday. Australian shares led gains in Asian session, soaring 1.7 percent with energy and financial shares topping the market as investors returned from a holiday.

Japan’s Topix rose 0.1 percent while South Korea’s Kospi added 0.7 percent. Hong Kong’s Hang Seng index and Shanghai Composite Index also found themselves trading in positive territory, jumping 0.4 percent both. Futures on the S&P 500 Index added 0.2 percent.

The Canadian dollar continued to soar on Tuesday after having touched the strongest level in about two months versus the dollar in the previous session. The loonie was supported by rising possibility that interest rates might go up sooner than expected.

The pair USDCAD nose-dived by more than 0.3 percent on Tuesday to trade around C$1.3285 per dollar – the lowest level since April 17th, following a drop of more than 1 percent on Monday. Canadian dollar got a lift after Bank of Canada senor deputy governor Wilkins, during her speech late Monday, said that a rate hike could come sooner than anticipated.

U.S. Federal Reserve's two-day policy meeting set to start later on Tuesday. The central bank is widely expected to raise interest rates for the second time since the start of this year, raising its fed funds target range by a quarter points to a range between 1.0-1.25 percent. Investors will also be watching for any fresh hints on the pace of further tightening in the months to come and on the Fed's plans for trimming its balance sheet which might be revealed in a 30-minute press conference of Fed Chair Janet Yellen following the rate decision.



Technicals

CADCHF


CADCHF has been struggling around a resistance at 0.72900 – a stance which had been a strong support for the pair in mid-May. Recent steep up moves have sent the market into the overbought zone and caused the price to fall into a consolidation. In the event of continual upbeat trade, the pair is expected to hit another strong level at 0.73400.

Trade suggestion

Buy Stop at 0.73000, Take profit at 0.73400, Stop loss at 0.72800



SUGAR


Sugar failed to maintain its bullish momentum after having breached the short-term MA20. The commodity had to retreat from as high as 14.52 and has fallen below the MA20 again. RSI rebounded from the 50 line and is heading lower, signaling further declines. Sugar may attempt a support at 13.30.

Trade suggestion

Sell Stop at 13.80, Take profit at 13.30, Stop loss at 14.00



GOLD


Gold futures prices have been trading sideways to lower under the downward pressure exerted by two MAs hanging above the price action. The short-term MA20 has breached the long-term MA50 from above, indicating a strengthening downtrend. RSI remained at low level, signaling further declines.

Trade suggestion

Sell Stop at 1263.00, Take profit at 1257.00, Stop loss at 1266.00



SILVER



Silver has been tracing a sharp downtrend which helped the metal’s price to beach a firm support at 16.990 and sent the market into an oversold zone. Silver, however, is likely to extend its down moves as ADX index is soaring strongly with a widening gap between –DI and +DI lines. A support at 16.670 is within the sight.

Trade suggestion

Sell Stop at 16.800, Take profit at 16.670, Stop loss at 16.850



DAX 30


As can be seen from the price chart, Germany’s DAX 30 index has been supported by a couple of MAs. The stock benchmark index gapped up on Tuesday and looks set to soar higher as the market has jumped in the bullish zone, as indicated by the RSI index. ADX index is edging higher, confirming the uptrend.

Trade suggestion

Buy Stop at 12750.00, Take profit at 12840.00, Stop loss at 12700.00



NASDAQ 100



NASDAQ 100 index jumped higher at the open on Tuesday and is facing a strong resistance at 5723.00 where the stock benchmark index had to give up its strength and rebounded lower. RSI has risen from the oversold zone while the +DI line has converged with the –DI line from below. A resistance at 5785.00 is expected to be tested.

Trade suggestion

Buy Stop at 5725.00, Take profit at 5785.00, Stop loss at 5700.00

 

[CSFX.Support]

USDCAD Market Outlook by Capital Street FX

Canadian Dollar Continues to Soar on Support from BOC’s Senior Official’s Hawkish Comments

The Canadian dollar soared on Tuesday after having touched the strongest level in about two months versus the dollar on Monday. The loonie was supported by rising possibility that interest rates might go up sooner than expected.

The pair USDCAD nose-dived by more than 0.3 percent on Tuesday to trade around C$1.3285 per dollar – the lowest level since April 17th, following a drop of more than 1 percent on Monday. Canadian dollar got a lift after Bank of Canada senor deputy governor Wilkins, during her speech late Monday, said that a rate hike could come sooner than anticipated.

On the other hand, the dollar held steady against a basket of currencies as investors were awaiting the U.S. Federal Reserve’s two-day policy meeting starting set to start later on Tuesday. The central bank is widely expected to raise interest rates for the second time since the start of this year, rising its fed funds target range by a quarter point to a range between 1.0%-1.25%.

Investors will also be watching for any fresh hints on the pace of further tightening in the months to come and on the Fed’s plans for trimming its balance sheet which might be revealed in a 30-minute press conference of Fed Chair Janet Yellen following the rate decision.

Higher rates could boost the dollar, sending the greenback higher against its rivals, including the loonie.

There will be no economic data for the Canadian dollar on Tuesday but the U.S. Bureau of Labor Statistics is scheduled to release data on Producer Price Index for May which is forecast to remain unchanged on a monthly basis.


USDCAD has declined for a third session in a row. The downward rally has sent the pair below a significant support at 38.2% Fibonacci level while the short-term DMA20 has crossed the long-term DMA50 from above, which indicates a strong bearish momentum in the market. ADX is soaring with a widening gap between the -DI and +DI lines. The pair is expected to edge lower and may test a support at 1.32200 – the lowest level since April 13.

Trade suggestion

Sell Stop at 1.32800, Take profit at 1.32200, Stop loss at 1.33000

 

[CSFX.Support]

CAD/JPY signal by Capital Street FX

From GMT 08:00 13/06/2017
Till GMT 21:00 13/06/2017

Buy at 83.100
Take profit at 83.700
Stop loss at 82.800

 

[CSFX.Support]

Daily Report on June 16, 2017 by Capital Street FX

Daily Report on June 16, 2017



Asian stocks were mixed on Friday with the MSCI Asia Pacific Index little changed. Despite of being weighed down by technology shares which caused the sector to drop 0.2 percent, overall performance was supported by gains in Japanese Yen which strengthened on the back of a weak currency. Crude futures prices held losses, continuing to trade at a seven-month low.

Japan’s Topix jumped 0.5 percent, erasing its loss for the week with the reversal into trading higher of shares of SoftBank Group Corp. Equities of the Japanese multinational telecommunications and Internet corporation jumped 2.8 percent, snapping a four-day downward rally. Australia’s S&P/ASX 200 Index advanced 0.4 percent while Hong Kong’s Hang Seng index and Singapore’s Straits Times Index also traded higher. The Shanghai Composite Index, however, lost 0.2 percent.

Meanwhile, the BOJ will conclude its two-day meeting today with markets expecting that the central bank would leave policy settings alone as Japan's consumer price growth is still far from the bank's 2% inflation target. The focus will be on Governor Haruhiko Kuroda’s press conference which comes after the results of the meeting.

Investors were waiting for clues from the BOJ’s Governor about an eventual exit from stimulus after the central bank upgraded its assessment of the economy from "recovery" to "expansion" at its last meeting in April. That was the first upgrade in the last nine years after BOJ considered improving exports and domestic consumption.



Technicals

GBPCHF


GBPCHF has been tracing an uptrend which brought its price action above a couple of MAs. The currency pair is struggling around a significant stance at 23.6% Fibonacci level. Both ADX and RSI index are on a rise, suggesting a strong bull is dominating the market. A resistance at 1.25300 is within the sight.

Trade suggestion

Buy Stop at 1.24700, Take profit at 1.25300, Stop loss at 1.24400



EURAUD


EURAUD has been on a sharp downtrend after having broken out of a period of moving sideways around an importance stance at 23.6% Fibonacci level. Under downward pressure from two MAs that are hanging above the price action, the pair is anticipated to test a support at 38.2% Fib. While ADX is surging vigorously with a widening gap between –DI and +DI lines, RSI index is edging lower, confirming the downtrend.

Trade suggestion

Sell Stop at 1.46700, Take profit at 1.46200, Stop loss at 1.46900



NZDJPY


NZDJPY extended its uptrend to a fourth day in a row – surging to the highest since early-March on Friday. The pair has officially broken out of a significant level at 50.0% Fibonacci level and surpassed a high at 79.992 reached on Wednesday. Both RSI and ADX indices are edging higher, which suggests further advances.

Trade suggestion

Buy Stop at 80.200, Take profit at 80.650, Stop loss at 80.000



SILVER


Silver prices have been struggling around a support at 16.710 – the stance that the precious metal failed to breach on Tuesday. The metal’s prices have been depressed by both long-term MA50 (which forced the price reversed lower at as high as 17.348) and short-term MA20. RSI remained at low level, signaling further declines.

Trade suggestion

Sell Stop at 16.700, Take profit at 16.550, Stop loss at 16.770



GOLD


Under the pressure from two moving averages, gold futures fell below a Fibonacci retracement at 23.6%. The precious metal fell into a consolidation following sharp down moves but seems to extend its downtrend with RSI index heading lower while ADX index is on a rise. A support at 1246.00 is within the sight.

Trade suggestion

Sell Stop at 1252.00, Take profit at 1246.00, Stop loss at 1255.00



DAX



Germany’s DAX 30 has been moving in an upward slopping trading range with higher lows and higher highs formed along the way. The price reversed lower after having nearly hit the lower boundary in Thursday. While RSI is inching higher, the stock benchmark index is expected to test a resistance 12830.00.

Trade suggestion

Buy Stop at 12710.00, Take profit at 12830.00, Stop loss at 12650.00

 

[CSFX.Support]

DAX30 Trade Idea by Capital Street FX

DAX 30 Index Reverses Higher As Shares of Auto Makers Jump

German shares advanced on Friday, reversing higher after a slump on the previous session. The stock benchmark DAX 30, which tracks the performance of the 30 largest companies trading on the Frankfurt Stock Exchange, added nearly 0.5 percent with gains from shares of auto makers.

The European Automobile Manufacturers’ Association on Friday reported that new car sales in the European Union rose 7.6% in May to 1.39 million in the EU in May from 1.29 million recorded one year ago. The sales rise in western Europe was reported to be most pronounced in Germany and Spain. In Germany, the EU’s biggest car market, car sales rose 12.9%.

The report triggered a sharp gain in shares of auto makers. Shares of BMW AG added 0.7% in Frankfurt while those of Daimler AG advanced by nearly 0.5 percent.

Trade suggestion

Buy Stop at 12760.00, Take profit at 12830.00, Stop loss at 12730.00

 

[CSFX.Support]

USDJPY Market Outlook by Capital Street FX

Japanese Yen Slumps Ahead of BOJ’s Rate Decision, Fed’s Rate Hike Continues to Support Dollar

Japanese Yen extended losses against its American counterpart on Friday after having suffered the biggest one-day decline in the previous session. While the Yen was awaiting the Bank of Japan’s rate decision, the dollar continued to strengthen on the back of following the Federal Reserve’s decision to raise interest rates.

The pair USDJPY rose nearly 0.2 percent to trade around 111.13 on Friday after dropping 1.2 percent in Thursday’s session – the most since January. The U.S. central bank on Wednesday lifted its benchmark interest rate to between 1% and 1.25% and said it would gradually shrink its massive $4.5 trillion balance sheet.

Meanwhile, the BOJ will conclude its two-day meeting today with markets expecting that the central bank would leave policy settings alone as Japan’s consumer price growth is still far from the bank’s 2% inflation target. The focus will be on Governor Haruhiko Kuroda’s press conference which comes after the results of the meeting.

Investors were waiting for clues from the BOJ’s Governor about an eventual exit from stimulus after the central bank upgraded its assessment of the economy from “recovery” to “expansion” at its last meeting in April. That was the first upgrade in the last nine years after BOJ considered improving exports and domestic consumption.

Later on the day, U.S. Census Bureau is due to report data on Building Permits for May, which is expected to point to a rise of 1.25 million permits issued last month after an unexpected slump in April. Data on housing starts is also anticipated to show an increase of 1.23 million units in May. In the month before, housing starts decreased by 2.6% from March to hit a seasonally adjusted 1.172 million units.

U.S. data released on Friday also features reports on Consumer Sentiment, Labor Market Conditions and Inflation Expectations published by University of Michigan.

Fig: USDJPY H4 Technical Chart

USDJPY has been tracing a strong uptrend after rebounding from as low as 108.810. The price action has not only breached both the short-term and long-term MAs from below but has also broken out of a firm resistance at 23.6% Fibonacci level – where it had to reverse lower last Friday. Both ADX and RSI indices are soaring strongly, suggesting a strengthening bullish momentum in the market. Further advances are expected.

Trade suggestion

Buy Stop at 111.200, Take profit at 111.600, Stop loss at 111.000

 

[CSFX.Support]

EUR/JPY signal by Capital Street FX

From GMT 08:35 16/06/2017
Till GMT 21:00 16/06/2017

Buy at 124.350
Take profit at 124.850
Stop loss at 124.100

 

[CSFX.Support]

Daily Report on June 19, 2017 by Capital Street FX

Daily Report on June 19, 2017



Asian shares rose on Monday with Japanese equities supported by a weaker Yen. MSCI's broadest index of Asia-Pacific shares outside Japan added 0.5 percent while Japan's Nikkei jumped 0.6 percent. The yen declined 0.1 percent versus the dollar after a report published by the Ministry of Finance showed that the country’s trade balance fell unexpectedly last month.

According to the data released earlier on Monday, Japan’s trade balance fell to a seasonally adjusted 0.13T in May from 0.16T in April. As stronger-than-expected imports overpowered the continued growth in exports, the result missed analysts’ expectation calling for a rise to 0.35T last month.

Australia’s S&P/ASX 200 Index climbed 0.5 percent and South Korea’s Kospi index gained 0.6 percent while Chinese shares jumped 0.55 percent. Hong Kong's Hang Seng advanced 0.85 percent. Investors were awaiting a decision from index compiler Morgan Stanley Capital International, or MSCI, which will be announced after markets close in New York on Tuesday, on whether to include Chinese-listed stocks, or so-called A-shares, in its widely tracked Emerging Markets Index.

Crude oil retreated on Monday, hovering near the lowest level since November on the back of a continuing expansion in U.S. drilling. The U.S. oil rig count was reported to continue to rise, up by 6 last week. The rise extended the upward rally to a 22nd in a row, adding concerns over high global supplies despite an OPEC-led initiative to cut production to tighten the market.



Technicals

GOLD



Gold continued to move sideways below a resistance at 23.6% Fibonacci retracement on Monday. Under downward pressure from two MAs which are hanging above the price action, gold not only failed to break out of the Fib. level but also appears to trade lower. A support at 1246.00 is within the sight.

Trade suggestion

Sell Stop at 1251.00, Take profit at 1246.00, Stop loss at 1253.00



COPPER



Copper’s price action has crossed over a couple of MAs for the first time since it dropped below these two stances last Monday. A reversal into an uptrend is expected as the RSI index has entered the bullish zone and has surged to as high as 60.3475. The metal’s price is expected to test a resistance at 2.6000.

Trade suggestion

Buy Stop at 2.5750, Take profit at 2.6000, Stop loss at 2.5650



SP500



SP500 index fell into a consolidation after a sharp rise on Friday which brought the price action above both the long-term and short-term MAs. With the support from two MAs hanging below the price action, the stock index is expected to extend its upward rally to test a resistance at 2445.00.

Trade suggestion

Buy Stop at 2439.00, Take profit at 2445.00, Stop loss at 2436.00



DAX


DAX 30 index has been trapped in an upward slopping trading range and has been tracing an uptrend following a rebound from the lower boundary. The price action has been struggling with a couple of MAs but further advances are expected as the RSI index which has surpassed 50 indicates a strengthening bullish momentum in the market.

Trade suggestion

Buy Stop at 12770.00, Take profit at 12830.00, Stop loss at 12740.00

 

[CSFX.Support]

Trade Signals by Capital Street FX

Global Shares Advance, Dow Hits Record, Gold Hovers Near One-month Lows

Gold futures prices traded lower on Monday as stock markets in the U.S. followed strength across global equities which witnessed gains in European and Asian benchmarks.

Gold futures for August delivery dropped 0.5 percent to trade around $1250.00 per ounce – hovering near one-month lows recorded last Friday. The precious metal extended its downward rally to the fourth day in a row and experienced losses in eight out of the last nine sessions.

All three major U.S. stock benchmarks soared on Monday with the Dow hitting a record as technology shares rebounded from a recent bout of sharp weakness. The Dow Jones Industrial Average jumped nearly 0.5 percent, hitting an all-time high of 21,490.00. The S&P 500 SPX jumped nearly 0.7 percent while the the Nasdaq Composite Index edged more than 1 percent higher.

Trade suggestion

Sell Stop at 1248.00, Take profit at 1243.00, Stop loss at 1250.00




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Led by Gains in Commodity and Retail Shares, FTSE 100 Trades Higher

U.K. shares climbed on Monday with broad-based gains led by commodity shares and retailers. The stock benchmark index FTSE 100 added more than 0.6 percent after hitting an intra-day high at 7527.95 as gains were encountered by a strong British Pound.

All sectors gained on London Stock Exchange, led by oil and gas and consumer-goods shares. Miners Anglo American PLC and Rio Tinto PLC topped the market. While the former jumped 1.61 percent, the latter moved up 1.4%.

Retail shares recovered after a selloff in the previous session. Shares of J Sainsbury PLC and Marks & Spencer Group PLC jumped around 2 percent each.

The British pound held on gains on Monday. Investors are eagerly awaiting the start of Brexit negotiations between Britain and the European Union in Brussels on Monday, kicking off a two-year divorce process due to end by March 2019. Key subjects to be negotiated include how the U.K. will trade with the EU once it leaves the bloc and the status of EU nationals and Britons living elsewhere in the EU.

Trade suggestion

Buy Stop at 7515.00, Take profit at 7545.00, Stop loss at 7500.00


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USD/JPY signal by Capital Street FX
From GMT 13:30 19/06/2017
Till GMT 21:00 19/06/2017
Buy at 111.300
Take profit at 111.700
Stop loss at 111.100

 

[CSFX.Support]

Daily Report on June 20, 2017 by Capital Street FX

Daily Report on June 20, 2017



Encouraged by rebound in U.S. hi-tech shares which helped the Nasdaq 100 Index jump​ the most since November, equity rally extended to Asia. The Yen dropped more than 0.2 percent against its American counterpart to trade around 111.700​ after hitting 111.775 at one point​ -​ the lowest​ level since May 26th.

Asian shares advances with Japan's Nikkei rising more than 1 percent to a near two-year high on Tuesday, causing investors to pour into risky assets instead of playing safe with the safe-haven currency like Yen. MSCI's broadest index of Asia-Pacific shares outside Japan was little changed on Tuesday​ as gains in high-tech firms​ were​ offset by a decline in Australian shares.

Australia’s S&P/ASX 200 Index shed 0.4 percent as shares of the country’s largest banks retreated following ratings downgrades from Moody’s Investors Service. Hong Kong’s Hang Seng Index reversed lower after an earlier gain of 0.5 percent. The Shanghai Composite Index edged up less than 0.1 percent.

Hawkish comments from a Federal Reserve official also helped ease concerns over the strength of the world’s largest economy. Speaking on Monday, New York Fed President William Dudley said that tightening in the labour market that would boost wages should help drive up inflation.​ Dudley's comments did not only reinforce the message from last week's Fed meeting but also supported expectations for the U.S. central bank to keep raising interest rates in the coming months.

​

Technicals

EURJPY


EURJPY has broken out of a slopping downward trend line that connects lower highs and has acted as a resistance since May 25th. The pair has moved sideways to higher since yesterday and helped boost the RSI index to as high as 65.79, which indicates a firm uptrend in the market. ADX index is also rising. A resistance at 50.0% Fibonacci level is within the sight.

Trade suggestion

Buy Stop at​ 124.600, Take profit at​ 125.100, Stop loss at​ 124.400



GBPAUD


After a wide gap down on June 09th, the pair GBPAUD fell into a slopping downward trading range with lower highs and lower lows formed along the way. The pair has also been under downward pressure from two MAs that are hanging above the price action which may send the pair​ lower to test a two-month low​ at 1.66800.

Trade suggestion

Sell​ Stop at​ 1.67400, Take profit at​ 1.66800, Stop loss at​ 1.67700



EURNZD



EURNZD has been tracing a downtrend since May 22nd​ which has brought the pair to two-month lows at around 1.53800. Under downward pressure from two MAs which are depressing the price action, the currency pair is anticipated to trade lower with a support at 1.53400 within the sight.

Trade suggestion

Sell​ Stop at​ 1.53800, Take profit at​ 1.53400, Stop loss at​ 1.54000



NASDAQ 100


NASDAQ 100 index closed​ at 5772.50 on Monday, retesting the highest level since June 14th. The price action crossed over the long-term MA50 from below, suggesting a strong uptrend even though the index fell into a consolidation following previously sharp up moves. A resistance at 5816.00 is likely to be tested.​

Trade suggestion

Buy Stop at​ 5776.00, Take profit at​ 5816.00, Stop loss at​ 5756.00



CAC 40 Index


France’s CAC 40 index has soared above both short-term and long-term MAs after a gap up on Monday. The stock benchmark index is testing the level 5321.70 again after having to reverse lower at this stance twice since June 08th.​ With RSI and ADX indicators heading upwards, CAC 40 index is expected to test a firm resistance at 5370.00,

Trade suggestion

Buy Stop at​ 5325.00, Take profit at​ 5370.00, Stop loss at​ 5305.00

 

[CSFX.Support]

Trade Signals by Capital Street FX

Japanese Yen Tumbles to One-month Lows Versus Dollar after Dudley’s Hawkish Comments


Japanese Yen plunged to nearly one-month lows on Tuesday as U.S. dollar was broadly stronger versus most of its peers. Meanwhile, Asian shares advances with Japan’s Nikkei rising more than 1 percent to a near two-year high on Tuesday, causing investors to pour into risky assets instead of playing safe with the safe-haven currency like Yen.

Encouraged by rebound in U.S. hi-tech shares which helped the Nasdaq 100 Index jumped the most since November, equity rally extended to Asia. The Yen dropped more than 0.2 percent against its American counterpart to trade around 111.700 after hitting 111.775 at one point – the lowest level since May 26th.

Hawkish comments from a Federal Reserve official also helped ease concerns over the strength of the world’s largest economy. Speaking on Monday, New York Fed President William Dudley said that tightening in the labour market that would boost wages should help drive up inflation.

Dudley’s comments did not only reinforce the message from last week’s Fed meeting but also supported expectations for the U.S. central bank to keep raising interest rates in the coming months.

Trade suggestion

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



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GBP/NZD signal by Capital Street FX

From GMT 09:10 20/06/2017
Till GMT 21:00 20/06/2017
Sell at 1.74800
Take profit at 1.74300
Stop loss at 1.75000

 

[CSFX.Support]

Daily Report on June 21, 2017 by Capital Street FX

Daily Report on June 21, 2017



Asian shares declined on Wednesday with Australia’s benchmark stocks index leading losses in the region as energy shares tumbled. Australia’s S&P/ASX 200 Index plunged by 1.5 percent, almost erasing its gains for the year as the overall performance was weighed down by shares of energy sector that dropped more than 2 percent. Indeed, shares of BHP Billiton Ltd. and Rio Tinto Ltd. shed at least 2.8 percent.

Whereas, a strengthening Yen sent Japanese’ shares lower as Japan’s Topix declined 0.3 percent, after climbing for three days to the highest level since August 2015. South Korea’s Kospi index also found itself trading in the read, losing 0.6 percent. On Tuesday, U.S. stocks retreated from all-time highs to fall the most in a month on the back of tumbling crude oil futures prices.

Following losses in Wall Street which witnessed the S&P 500 Index lose 0.7 percent for its biggest decline since May 17, Hong Kong’s Hang Seng lost 0.6 percent and the Hang Seng China Enterprises Index fell 0.5 percent.

By contrast, the Shanghai Composite rose 0.2 percent after U.S. index provider MSCI said on Wednesday that it would add a selection of China's so-called "A" shares to its Emerging Markets Index. After a three-year campaign for inclusion in a leading emerging markets benchmark, 222 China A-share stocks will be added into the MSCI index - a leading emerging markets benchmark – from May 2018.



Technicals

EURJPY



EURJPY failed to break out of its current trading range yesterday. The currency pair crossed over the upper boundary but failed to sustain its bullish force. The price is struggling around the long-term MA50 after having penetrated the short-term MA20. RSI has fallen below 50, suggesting a strengthening bearish momentum. A support at 123.200 is within the sight.

Trade suggestion

Sell Stop at 123.700, Take profit at 123.200, Stop loss at 123.900



GBPUSD



GBPUSD on Tuesday dropped below a firm support at 1.26400 – the level it had to reverse higher on June 9 and June 13. The pair has also been under downward pressure from two MAs hanging above the price action. While RSI is lingering at as low as 28.00, ADX is heading upwards, signaling further down moves.

Trade suggestion

Sell Stop at 1.26000, Take profit at 1.25600, Stop loss at 1.26200



CAC 40 Index


CAC 40 index gapped down on Wednesday and brought its price action back below a couple of moving averages. RSI has fallen into the bearish zone while the –DI line crossed over the +DI line from below, suggesting a strong downtrend. The stock benchmark index is expected to test a support at 5175.00.

Trade suggestion

Sell Stop at 5230.00, Take profit at 5175.00, Stop loss at 5250.00



DAX 30


Germany’s DAX 30 index continued to be trapped in a slopping upward trading range with higher highs and higher lows formed along the way. The index gapped up on Tuesday but failed to maintain its bullish momentum and had to reverse lower after hitting the upper boundary. DAX index fell below two MAs on Wednesday, heading towards the lower boundary.

Trade suggestion

Sell Stop at 12720.00, Take profit at 12640.00, Stop loss at 12750.00

 

[CSFX.Support]

Trade Signals by Capital Street FX

Larger-Than-Expected Decline in U.S. Supplies Fails To Support WTI Crude Futures

U.S. crude futures price reversed lower after having briefly spiked following U.S. government data that showed domestic crude supplies fell more than expected.

August West Texas Intermediate crude lost around 0.1 percent in North American trading session after having jumped to as high as $44.170 per barrel. Data released by the U.S. Energy Information Administration on Wednesday showed U.S. crude stockpiles fell by 2.5 million barrels for the week ended June 16, topping analysts’ expectation calling for a decline of 2 million barrels.

However, EIA’s data failed to support the price due to rising concerns over a renewed glut in global supply. U.S. explorers have been boosted the number of rigs drilling for oil. Indeed, the U.S. oil rig count was reported to continue to rise, up by 6 last week.

The rise extended the upward rally to a 22nd in a row, adding concerns over high global supplies despite an OPEC-led initiative to cut production to tighten the market.

Trade suggestion

Sell Stop at 43.300, Take profit at 42.700, Stop loss at 43.600



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Shares of Adobe Systems Jump to All-time Record High After Upbeat Q2 Earnings Report

Shares of Adobe Systems Inc. jumped more than 4 percent ahead of the opening bell on Wednesday after the company reported last quarter’s earnings results that beat expectation late Tuesday.

Shares of the American multinational computer software company jumped to all-time record high of $147.00 per shares in pre-market trading on Wednesday after having closed the regular session with a 0.4% increase at $140.91 on Tuesday.

Adobe Systems reported earnings per share (EPS) of $1.02 on sales of $1.77 billion for its fiscal second quarter, which was above the Wall Street consensus estimate of $0.95 for EPS and of $1.73 billion for sales. Revenues rose 26.7% from the same quarter last year.

The San Jose, CA-based software giant claimed net income of $374.4 million, or 75 cents a share for the last quarter. Adobe forecast EPS of around $1.00 and revenues of $1.815 for the current quarter, which topped Wall Street estimates of $0.97 for Q3 EPS and $1.8 billion for revenues.

Trade suggestion

Buy Stop at 147.000, Take profit at 148.000, Stop loss at 146.500



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GBP/USD signal by Capital Street FX

From GMT 14:50 21/06/2017
Till GMT 21:00 21/06/2017

Sell at 1.26600
Take profit at 1.26000
Stop loss at 1.26900

 

[CSFX.Support]

Daily Report on June 22, 2017 by Capital Street FX

Daily Report on June 22, 2017



Asian shares advanced on Thursday after a Wednesday’s declines. MSCI's broadest index of Asia-Pacific shares outside Japan added 0.3 percent. Australia’s S&P/ASX 200 Index jumped 0.6 percent. The index tumbled 1.6 percent on Wednesday to erase its gain for the year. While Japan’s Topix was little changed, Japan's Nikkei fell 0.1 percent.

South Korea’s Kospi index climbed 0.2 percent. The Hong Kong’s Hang Seng index and the Shanghai Composite Index both edged higher, adding 0.2 percent and 0.7 percent, respectively. The CSI 300 Index, which includes 222 China A-share stocks slated to be added into the MSCI index from May 2018, extended gains after jumping 1.2 percent on Wednesday to the highest close since December 2015.

The Reserve Bank of New Zealand on Thursday decided to leave interest rates at a record low 1.75 percent as widely expected. The New Zealand dollar edged higher after Graeme Wheeler, the central bank’s governor, said that headline inflation was expected to rise to the midpoint of the bank’s target band in the medium term, given wage and non-tradable inflation that may increase gradually.

Crude oil futures prices struggled for direction on Thursday. West Texas oil shed 0.2 percent to $42.44 a barrel after climbing as much as 0.5 percent earlier. Brent crude plunged below $45 per barrel. Both international benchmarks lost more than 2.3 percent in the previous session.



Technicals

NZDUSD



NZDUSD fluctuated widely in early trade on Thursday and has broken out of a shrinking trading range with lower highs and higher lows formed along the way. The price action also crossed over two MAs from below, suggesting an emerging bullish force in the market. RSI is edging higher which signals upcoming upbeat moves.

Trade suggestion

Buy Stop at 0.72570, Take profit at 0.72970, Stop loss at 0.72370



EURGBP



EURGBP has been supported by two moving averages that are lingering below the price action. The short-term MA20 has penetrated the long-term MA50 from below, which indicates a strengthening uptrend. Two indices which are RSI and ADX are rising, signaling further up moves.

Trade suggestion

Buy Stop at 0.88200, Take profit at 0.88600, Stop loss at 0.88000



BRENT


Brent crude price has been under downward pressure exerted from two MAs, which are hanging above the price action, since the pair fell below these two stances on May 25th. The price entered a period of correction after previous sharp down moves which sent the market into the oversold zone. With sellers dominating the market, Brent crude price is expected to test a low at 43.550 – the lowest level since November 14th, 2016.

Trade suggestion

Sell Stop at 44.550, Take profit at 43.550, Stop loss at 45.000



NASDAQ 100


U.S. NASDAQ 100 index extended gains after having penetrated two MAs from below, sustaining its bullish momentum. The stock benchmark index is struggling at a significant resistance at 5800.00 – where it fell into a consolidation three weeks ago. Both ADX and RSI are on a rise, not to mention a widening gap between +DI and –DI lines, signaling further advances.

Trade suggestion

Buy Stop at 5800.00, Take profit at 5840.00, Stop loss at 5780.00

 

[CSFX.Support]

Trade Signals by Capital Street FX

Canadian Dollar Rallies Verus the Greenback after April Retail Sales Beat Forecast

The Canadian dollar rallied against its American counterpart in North American trading on Thursday after a report showed retail sales in the country grew at a faster pace than expected in April.

The currency pair USDCAD dropped more than 0.8 percent to trade around C$1.320 per dollar, reversing lower after heading upwards for three days in a row. The loonie jumped sharply higher after Statistics Canada on Thursday reported that retail sales rose 0.8 per cent in April compared to the previous month. The result topped analysts’ expectations for a 0.2 percent gain on a monthly basis and also beat the 0.5 per cent advance recorded in March.

Core retail sales, which exclude auto and car parts related sales, were reported to soared 1.5 percent during the period. Upbeat April’s reading not only marked a reversal into an uptrend after a drop of 0.1 percent in March but also helped bolster optimism over the economy and strengthen the case of the Bank of Canada raising interest rates.

Trade suggestion

Sell Stop at 1.32200, Take profit at 1.32700, Stop loss at 1.32400


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Shares of Oracle Take Off 10% After Upbeat Fiscal Q4 Earnings Report and Rosy Outlook for 2018

Shares of Oracle Corp. jumped sharply more than 10 percent in after-hours trading on Wednesday after the Redwood Shores, California-based company reported its fiscal fourth-quarter earnings that beat expectations.

For the final quarter in its 2017 fiscal year, the computer technology corporation posted net income of $3.23 billion, or 76 cents a share. Adjusted for one-time items, the software giant reported profit of 89 cents a share on sales of $10.89 billion, which topped analysts’ forecast for earnings of 78 cents a share on revenue of $10.46 billion.

Shares of Oracle soared 10.3 percent to trade at $51.10 per share after closing the regular trading session 1.07 percent higher. After two years witnessing declines in profit and revenue, Oracle posted full-year revenue growth of 1.8% and profit growth of 4.9%.

Growth in the current fiscal quarter, which began June 1, is anticipated to jump even more which may boost full-year sales to growth at the pace from 4% to 6%.
Trade suggestion

Buy Stop at 51.10, Take profit at 52.00, Stop loss at 50.60


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CAD/JPY
FromGMT 16:20 22/06/2017
TillGMT 21:00 22/06/2017
Buy 84.200
Buy at 84.200
Take profit at 84.600
Stop loss at 84.000

 

[CSFX.Support]

Daily Report on June 23, 2017 by Capital Street FX

Daily Report on June 23, 2017



Asian shares were flat on Friday after U.S. stocks closed mixed on yesterday’s session. A surge came to health care stocks on Wall Street as investors were waiting for the unveiling of Senate’s health care bill, which aims to repeal and replace Obamacare.​ At the close in NYSE,​ while the Dow Jones Industrial Average and the S&P 500 index fell around 0.05%, the Nasdaq Composite closed​ up 0.04%.

In Asian trading session, the MSCI's broadest index of Asia-Pacific shares outside Japan was flat but looked set for a weekly gain of 0.4 percent. Australia’s S&P/ASX 200 Index and South Korea’s Kospi index were both also flat in the morning session while​ Japan’s Topix fell less than 0.1 percent. By contrast, the Hang Seng China Enterprises Index of mainland firms trading in Hong Kong​ and the Hang Seng Index added​ 0.6 percent​ and​ 0.2 percent,​ respectively.

U.S. Senate Republicans on Thursday unveiled a 142-page proposal which aims to roll back former President Barack Obama's signature healthcare law by scaling back aid to the poor and killing a tax on the wealthy. While Democrats are united in opposition, four conservative lawmakers said they could not support the Obamacare replacement bill in its current form.

Elsewhere, according to the Markit,​ Japanese manufacturing activity slowed​ in June due to the fact that​ new orders grew at the slowest pace in seven months. The Markit/Nikkei Flash Japan Manufacturing Purchasing Managers Index (PMI) was reported to drop to 52.0 in June from a final 53.1 in May. Although the index remained above 50, which indicates an expansion, for the 10th consecutive month, a weak figure showed a sign of a slight weakening in domestic demand.

​

Technicals

GBPAUD



As can be seen from the price chart, with the support from two MAs which are moving below the price action, the pair GBPAUD has escaped from a slopping downward trading range. The pair broke out of the upper boundary from below and is heading towards a resistance at 1.68700. Further advances are expected as RSI is pointing upward, indicating a dominating bull in the market.

Trade suggestion

Buy Stop at​ 1.68300, Take profit at​ 1.68700, Stop loss at​ 1.68100



USDCHF


USDCHF has not only fallen below the long-term MA50 but also broken out of an upward slopping trading range which tracks higher highs and higher lows. The breakout signals a reversal into a downtrend. Although ADX is rising while RSI is heading lower, indicating a strengthening bearish force in the market, a firm support at 0.9700 is within the sight.

Trade suggestion

Sell​ Stop at​ 0.97000, Take profit at​ 0.96700, Stop loss at​ 0.97150



SILVER


Silver continued to extend its upbeat moves​ after breaking out a period of moving sideways around a significant level at 61.8% Fibonacci level. The metal has penetrated the short-term MA20 with the support from the long-term MA50. RSI is edging higher. Silver is expected to test a resistance at 16.800.

Trade suggestion

Buy Stop at​ 16.650, Take profit at​ 16.800, Stop loss at​ 16.580



FTSE 100


U.K. FTSE 100 index has been tracing a downtrend after reversing lower from a strong resistance at 7545.00. In general, the stock benchmark index has been trapped in a trading range between 7390.00 and​ 7545.00. Under downward pressure from two MAs that are hanging above the price action, the index may retest the lower boundary.

Trade suggestion

Sell​ Stop at​ 7420.00, Take profit at​ 7390.00, Stop loss at​ 7435.00

​

 

[CSFX.Support]

USDCAD Trade Idea by Capital Street FX

Loonie Holds on Gains Versus Dollar As Oil Rebounds From 10-month Lows


Canadian dollar continued to gain ground versus its American counterpart on Friday after having surged sharply in the previous session. While the greenback dipped to a four-day low against major currencies, the commodity-linked currency, the loonie, held on gains as crude price rebounded.

The pair USDCAD dipped 0.1 percent to trade around 1.3222 in the last session of the week after losing 0.75 percent on Thursday, paring most of its weekly gain.

The U.S. dollar remained weak against most of its rivals ahead of a handful of Fed policymakers that are scheduled to make public appearances later in the day. St. Louis Fed President James Bullard, Cleveland Fed President Loretta Mester and Fed Governor Powell are scheduled to deliver comments on Friday with investors awaiting clues on the likelihood of higher interest rates in the coming months.

The dollar index – which measures the greenback against a basket of six major currencies – lost more than 0.2 percent to trade around 97.33 in European trading session. Next week, U.S. calendar features data on June consumer confidence indicator, pending home sales, crude oil inventories, revised first quarter GDP and the PCE price index.

Meanwhile, crude oil futures prices scaled back from 10-month lows which they hit on Wednesday, adding strength to the Canadian dollar which has already been spurred by upbeat data on April retail sales. Brent crude futures added 0.51 percent while U.S. West Texas Intermediate (WTI) crude futures jumped 0.54 percent, at $42.80 per barrel.

Trade suggestion

Sell Stop at 1.32100, Take profit at 1.32700, Stop loss at 1.32300

 

[CSFX.Support]

GBP/USD signal by Capital Street FX

From GMT 08:20 23/06/2017
Till GMT 21:00 23/06/2017
Buy at 1.27400
Take profit at 1.28000
Stop loss at 1.27100