Daily Technical Analysis by Capital Street FX

Bolstered by Better-than-expected Earnings, 3M Shares Jump Nearly 3%

Shares of 3M Co. rallied nearly 3 percent in premarket trade on Tuesday after the multinational conglomerate corporation reported profit and revenue for the third quarter that beat expectations.

3M’s shares jumped 2.91 percent to trade at $228.00, boosted by better-than-expected third-quarter earnings reports. Indeed, the industrial, safety and consumer products company said it earned $1.43 billion, or $2.33 a share in the three-month period to September, up from $1.33 billion, or $2.15 a share, in the same period a year ago.

Adjusted for non-incurring items, earnings per share came in at $2.21.

Meanwhile, revenue was reported to reach $8.17 billion, increasing for a reading of $7.71 billion recorded in the same quarter last year and easily topping market forecast calling or revenue of $7.92 billion. The Minnesota-based company raised its net EPS guidance to a range of $9.00 to $9.10 from $8.80 to $9.05.

Trade suggestion

Buy Stop at 228.00, Take profit at 230.00, Stop loss at 227.00


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U.S. Same-store Sales Advance in Q3, McDonald Shares Edge Higher in Pre-market Trade

Shares of McDonald’s Corp. rose in pre-market trading session on Tuesday after the world’s biggest fast-food chain published earnings for the third quarter that showed a bigger-than-expected increase in quarterly U.S. comparable sales.

McDonald’s shares gained 1.24 percent to trade at $165.36 after the fast food restaurant chain reported sales at U.S. restaurants that has opened at least 13 months jumped 4.1 percent. The rate was above the 3.4 percent growth expected by analysts.

The advance came as a result of attempts of McDonald to reverse a decline in traffic at its U.S. restaurants with offers such as soft drinks of all sizes for $1 and McPick 2 for $5 promotion.

Meanwhile, global comparable sales also rose, jumping 6 percent, above the 4.5 percent increase forecast by analysts. McDonald reported net income of $1.88 billion, or $2.32 per share, in the third quarter ended September 30th, up from $1.28 billion, or $1.50 per share, a year earlier.

Trade suggestion

Buy Stop at 165.50, Take profit at 168.00, Stop loss at 164.00


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NZD/USD

From GMT 14:40 24/10/2017
Till GMT 21:00 24/10/2017

Sell at 0.69000
Take profit at 0.68500
Stop loss at 0.69200

U.S. shares were mixed after the close on Friday with the Dow Jones Industrial Average dropping 0.71 percent, the S&P 500 index declining 0.09 percent while the NASDAQ Composite index adding 0.01%. Meanwhile, the U.S. dollar snapped three straight weeks of gains after having plunged to one-week lows against a basket of the other major currencies on Friday. Read More

GE Shares On track for Its Lowest Close Since June 2012 After Dividend Cut and Downbeat Outlook

Shares of General Electric Co. reversed lower to plunge toward a five-and-a-half low on Monday after the industrial conglomerate posted a downbeat profit outlook for next year and announced to cut its quarterly dividend by half.

GE’s shares lost more than 6.6 percent in very active morning North American trading session on Monday after having rallied as much as 2.4 percent in premarket trade. The company said that it would cut its dividend by half to 12 cents a share in order to preserve cash for a restructuring under new Chief Executive John Flannery.

Daily Technical Analysis
U.S. shares struggled for direction after early losses following bearish sentiment in Asian and European trading sessions. Uncertainties around the progress of Republican tax-cut legislation persists, holding back gains in U.S. major stock benchmark indices. The Dow Jones Industrial Average, the Nasdaq Composite Index and the S&P 500 were all up by less than 1 percent.
Meanwhile, the Stoxx Europe 600 Index shed 0.7 percent after having scored its fifth consecutive decline and hit the lowest in almost seven weeks. Most Asian markets closed lower with the MSCI Asia Pacific Index losing 0.6 percent. Japanese shares lost ground as the yen advanced 0.2 percent to 113.30 per dollar, the strongest in two weeks. The Nikkei 225 slid 1.32 percent – the most since April and the Japan’s Topix fell 0.9 at the close. Read More


Technicals

AUDUSD

EURCHF has been moving sideways to higher below a firm resistance at 1.16200. The price action has crossed over both the short-term MA20 and the long-term MA50. Bullish sentiment is dominating in the market, as indicated by the RSI index and the ADX index which are edging higher. The pair is anticipated to attempt a resistance at 1.16600.
Trade suggestion
Buy Stop at 1.16200, Take profit at 1.16600, Stop loss at 1.16000
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EURCHF

EURCHF has been moving sideways to higher below a firm resistance at 1.16200. The price action has crossed over both the short-term MA20 and the long-term MA50. Bullish sentiment is dominating in the market, as indicated by the RSI index and the ADX index which are edging higher. The pair is anticipated to attempt a resistance at 1.16600.
Trade suggestion
Buy Stop at 1.16200, Take profit at 1.16600, Stop loss at 1.16000
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AUDJPY

AUDJPY has penetrated a strong support at the level 86.700 from above with downward pressure from two moving averages that are hanging above the price action. Further declines are forecast for the currency pair as the bear is overwhelming in the market. While the RSI index is at as low as 31.88, the ADX index is on a rise, confirming the selling signal.
Trade suggestion
Sell Stop at 86.500, Take profit at 86.100, Stop loss at 86.700
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EURCAD

The currency pair EURCAD broke out of a trading range between a support at 1.47400 and a resistance at 1.48200, sending its price action above both the short-term MA20 and the long-term MA50. The RSI index is at as high as 67.08 while the ADX index is ticking higher with a widening gap between the +DI and –DI lines, suggesting further advances for the prices.
Trade suggestion
Buy Stop at 1.48500, Take profit at 1.49000, Stop loss at 1.48300
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NASDAQ 100

U.S. NASDAQ 100 Index has been trading around a benchmark at 6300.00. However, as can be seen from the RSI index which rebounded from the 50 level, the market remained in the bullish territory. Further advances are forecast for the stock benchmark index with a resistance at 6350.00 within the sight.
Trade suggestion
Buy Stop at 6320.00, Take profit at 6350.00, Stop loss at 6305.00

Q3 German GDP Outstrips Market Expectations, Euro Rallies to Three-week Highs


The euro jumped against all its G-10 peers and hit the highest level in nearly three week versus its American counterpart on Tuesday after data on German GDP in the third quarter came in well above expectations.
The single currency added more than 0.7 percent in European trading session on Tuesday, sending the pair EURUSD to as high as $1.17500 – the strongest level since October 26th. The currency pair was also on course for its fifth consecutive advance and the biggest increase in almost 10 weeks.
Data released by Germany’s Destatis agency showed the eurozone’s biggest economy grew at a sequential clip of 0.8 per cent in the third quarter, outstripping economist expectations of 0.6 per cent. The expansion recorded last quarter resulted from buoyant growth in exports and capital investment. On a yearly base, the economy expanded at the rate of 2.8 percent, up from a revised 2.3% in Q2, which is the fastest in six years.
Trade suggestion
Buy Stop at 1.17500, Take profit at 1.17900, Stop loss at 1.17300

Technical Analysis

Global shares dropped on Tuesday with crude oil futures leading commodities lower. The S&P 500 Index lost 0.3 percent while the Stoxx Europe 600 Index sank 0.6 percent and recorded its sixth consecutive decline. Germany’s DAX Index shed 0.2 percent to hit the lowest in almost three weeks. By contrast, the U.K.’s FTSE 100 Index ticked down less than 0.1 percent after having pared early gains of as much as 0.2 percent.
In Asia, the MSCI Asia Pacific Index fell 0.2 percent in a third day of losses. Japanese shares extended their downbeat rally as the Yen strengthened. Indeed, the Topix index lost 0.3 percent in a fourth day of losses while the Nikkei 225 Stock Average closed little changed. The Shanghai Composite slid 0.5 percent while the Australia’s S&P/ASX 200 index and the Kospi index in Seoul slid 0.9 percent and 0.2 percent, respectively.

Technicals
EURAUD
As can be seen from the chart, the pair EURAUD has broken above a resistance at 1.53500 and is on its way to test a resistance at a significant level at 61.8% Fibonacci retracement. The RSI index which has soared to as high as 81.53 indicates that the pair has jumped into an overbought zone. With ADX index on a rise, the pair is anticipated to advance further.
Trade suggestion
Buy Stop at 1.53900, Take profit at 1.54500, Stop loss at 1.53600
EURJPY
EURJPY has been on a strong rise with a support from a couple of moving averages that are lingering below the price action. As can be seen from the chart, the short-term MA20 has penetrated the long-term MA50 from below, suggesting a strong uptrend. Both ADX and RSI indices are surging, signaling further advances for the pair.
Trade suggestion
Buy Stop at 133.650, Take profit at 134.050, Stop loss at 133.450
COPPER
Copper dropped from a resistance at 3.1350 with lower lows formed in the price chart. The price action once again fell below a couple of moving averages and has crossed over a firm support at 3.0700. The commodity price is expected to trade lower as the sellers are dominating in the market. A support at 3.0300 is within the sight.
Trade suggestion
Sell Stop at 3.0550, Take profit at 3.0300, Stop loss at 3.0650
Natural Gas
Natural gas futures prices have slumped from as high as 3.2150. Recent down moves have sent the price action below both the short-term MA20 and the long-term MA50, which confirms the reversal into a downtrend. The price action is heading towards a support at a significant level at 38.2% Fibonacci retracement. As RSI index is pointing downward, the commodity is expected to extend its downtrend.
Trade suggestion
Sell Stop at 3.0700, Take profit at 3.0300, Stop loss at 0.0850
GOLD
Gold fell below a firm support at 1274.00 after having failed to cross over a strong resistance at 61.8% Fibonacci retracement. The precious metal is likely to test another firm support at as low as 1266.00 as the market has been dominated by sellers. RSI index is at the low of 35.87 while ADX index is heading higher with a divergence between the –DI and +DI lines.
Trade suggestion
Sell Stop at 1271.00, Take profit at 1266.00, Stop loss at 1273.00
EURO 50 Index
Euro Stoxx 50 index reversed lower after a short correction that came after the stock benchmark index hit a one-and-a-half-month low on Monday. The index is on a strong decline with downward pressure exerted from a couple of moving averages that are hanging above the price action. While RSI index is at low levels, ADX index is pointing upwards with a widening distance between the –DI and +DI lines.
Trade suggestion
Sell Stop at 3555.00, Take profit at 3530.00, Stop loss at 3570.00

Yen Soars to Nearly One-month Highs Versus Dollar As Investor Appetite For Riskier Assets Wavers

The Japanese yen soared to the strongest level in nearly a month against its American counterpart on Wednesday as a slide in oil prices and concerns over the progress of a U.S. tax overhaul weighed on investor appetite for riskier assets.
The Yen added more than 0.8 percent versus the U.S. dollar in European trading session on Wednesday, sending the pair USDJPY to as low as 112.546 – the lowest level since October 19th. The currency pair was also on course for the biggest daily increase in almost 10 weeks.
Demand for safe-haven assets such as the Japanese Yen and Gold increased dramatically due to the fact that investors were running away from perceived riskier assets such as equities. European stocks followed declines in Asia with the Stoxx Europe 600 Index dipping 0.8 percent. The European stock benchmark index extended its slide to a seventh consecutive session and was trading at the lowest level in the last two months.
Trade suggestion
Sell Stop at 112.500, Take profit at 112.100, Stop loss at 112.700

Daily Technical Analysis
Demand for safe-haven assets such as the Japanese Yen and Gold increased dramatically due to the fact that investors were running away from perceived riskier assets such as equities. European stocks followed declines in Asia with the Stoxx Europe 600 Index dipping 0.8 percent. The European stock benchmark index extended its slide to a seventh consecutive session and was trading at the lowest level in the last two months.
The U.K.’s FTSE 100 Index lost 0.5 percent and the Germany’s DAX Index shed 0.9 percent, looking set to score their fifth consecutive decline. In Asia, while the Nikkei 225 Stock Average dropped 1.6 percent, the Topix index even plunged lower with a decline of 2 percent to mark its longest streak of losses since September 2016.
Australia’s S&P/ASX 200 Index and Kospi index in Seoul declined 0.6 percent and 0.3 percent, respectively while the Hong Kong’s Hang Seng Index and the Shanghai Composite Index tumbled at least 0.8 percent. Futures of U.S. shares were also trading in negative territory. Read More
Technicals
EURCAD
EURCAD has been on a strong uptrend which has brought the pair to retest a three-week high at 1.51158. The market has jumped into an overbought zone, as indicated by the RSI index that has soared as high as 89.62. ADX index is still heading upwards, suggesting a strengthening bullish momentum in the market. A resistance at 1.51700 is within the sight.
Trade suggestion
Buy Stop at 1.51200, Take profit at 1.51700, Stop loss at 1.51000
AUDJPY
AUDJPY resumed its downtrend following a consolidation at 85.600 after the currency pair had fallen into an oversold territory. The pair looks set to trade lower in response to an overwhelming and dominating bearish force in the market, as the ADX index is ticking higher. A support at 85.000 is expected to be tested.
Trade suggestion
Sell Stop at 85.500, Take profit at 85.000, Stop loss at 85.700
USDCAD
With the support from a couple of moving averages that are hanging below the price action, the pair USDCAD has broken out of a period of moving sideways below a significant level at 38.2% Fibonacci retracement. The pair is heading higher with a strong bullish momentum. While the RSI index is edging higher, the ADX index is reversing with a widening gap between the +DI and –DI lines.
Trade suggestion
Buy Stop at 1.27850, Take profit at 1.28300, Stop loss at 1.27650
COPPER
Copper has been ticking lower after its price action has crossed over a firm support at 3.0700. The RSI index continued to slide which indicates a strengthening bearish momentum in the market. The commodity is anticipated to extend its downtrend in attempt to test a firm support at 23.6% Fibonacci retracement.
Trade suggestion
Sell Stop at 3.0350, Take profit at 3.0100, Stop loss at 3.0450
CAC40 Index
France’s CAC 40 index has been on a downtrend for a seventh consecutive trading day. The stock benchmark index has plunged to its lowest level since late-September and has sent the market into the oversold zone. Further declines, however, are forecast for the index as the sellers are still getting stronger in the market, as indicated by the ADX index that is still on a rise.
Trade suggestion
Sell Stop at 5275.00, Take profit at 5240.00, Stop loss at 5290.00

Rosy Outlook Boosts Cisco Shares To Levels Not Seen for 15 Years

Shares of Cisco Systems Inc. rose drastically in the extended session Wednesday after the multinational technology conglomerate reported quarterly earnings that topped market estimates and forecast upbeat earnings outlook for the current quarter.
Cisco’s shares jumped more than 5.8 percent in after-hours trading on Wednesday after having closed the regular session up 0.21 percent. Shares were trading at as high as $36.10 – levels not seen for more than 15 years. The networking company posted fiscal first-quarter net income of $2.39 billion, or 48 cents a share, up from $2.32 billion, or 46 cents a share, in the year-ago period. Adjusted earnings were reported to hit 61 cents a share.
For the second fiscal quarter, Cisco forecast earnings to reach a range from 58 cents to 60 cents a share. Year-on-year revenue is expected to advance by 1% to 3%, to $11.7 billion to $11.93 billion. The forecast beat analysts’ expectations calling for earnings of 58 cents a share on revenue of $11.7 billion.
Trade suggestion
Buy Stop at 36.10, Take profit at 36.50, Stop loss at 35.90
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Euro Turns Lower on Concerns Over the Collapse of the German Coalition Talks
The euro reversed lower versus its American counterpart on Monday under downward pressure stemming from news that talks to form a new government in Germany had collapsed.
The single currency lost dropped nearly 0.4 percent against the U.S. dollar, sending the pair EURUSD down to as low as $1.17473 in the morning North American trading session. The currency was under pressure on the back of uncertainties regarding to who will govern the largest European economy as German Chancellor Angela Merkel failed to reach an agreement with two other political parties to form a new government.
The pro-business FDP (Free Democratic Party) was reported to pull out of the talks with lawmakers citing irreconcilable differences.
The collapse of the German coalition talks held over the weekend would mark the first time since World War II that a general election had not led to a new government. Merkel is consulting with the German president Frank-Walter Steinmeier on Monday to decide what to do next. New elections are likely to be called.
Trade suggestion
Sell Stop at 1.17400, Take profit at 1.17000, Stop loss at 1.17600

Daily Technical Analysis
Global shares pushed higher on Tuesday with automakers and insurance companies leading the advance in the Stoxx Europe 600 Index. The European stock benchmark index added 0.5 percent to trade at the strongest level in more than a week. German shares outperformed with DAX Index soaring 0.9 percent to reach the highest in more than a week. The U.K.’s FTSE 100 Index also hit one-week highs, up 0.3 percent.
In Asia, the MSCI Asia Pacific Index climbed 0.9 percent. Japan’s Nikkei closed 0.7 percent higher and Chinese stocks rose also ended in positive territory. The Shanghai Composite and the Shenzhen Composite both jumped nearly 0.8 percent. Meanwhile, the Australia’s S&P/ASX 200 stock index closed up 0.3 percent after the Australian central bank suggested that interest rates will stay lower for longer.
U.S. stock futures indices were also on a rise with Nasdaq-100 futures up 0.5% at 6,344. While Dow Jones 30 futures added 0.4% at 23,493, futures on the S&P 500 Index gained 0.3 percent to the highest in almost two weeks. The U.S. dollar was steady on Tuesday with the ICE U.S. Dollar index little changed at 94.120.
At an event later in the day, Federal Reserve Chair Janet Yellen is expected to answer questions on her term atop the central bank and the direction of policy and Wall Street oversight in the years ahead.

Technicals
EURGBP
The currency pair EURGBP has been on a steady down trend that brought its price action below a couple of moving averages. Moreover, the short-term MA20 has crossed over the long-term MA50 from above, which confirms the downtrend. The price is expected to trade lower, possibly testing a support at 0.88000. RSI index continued to point lower, suggesting further declines.
Trade suggestion
Sell Stop at 0.88400, Take profit at 0.88000, Stop loss at 0.88600

EURCAD
EURCAD retested a support at 1.49950 after sending its price action below the short-term MA20. The RSI index has fallen to as low as 47.40, indicating a strengthening bearish force in the market. The currency pair is forecast to make a breakout which can send the price to another firm support at 1.49500.
Trade suggestion
Sell Stop at 1.49950, Take profit at 1.49500, Stop loss at 1.50150

USDJPY
USDJPY reversed lower after having fallen to sustain its bullish momentum above the short-term MA20. Under the pressure of this moving averages, the currency pair is forecast to retest a low at 111.900 recorded on Monday. As can be seen from the indicator window, the RSI index keeps moving in negative zone, indicating a dominating bearish force in the market.
Trade suggestion
Sell Stop at 112.300, Take profit at 111.900, Stop loss at 112.500

Dow Jones
Supported by a couple of moving averages that are lingering below the price action, the Dow Jones 30 index rebounded from a consolidation. With the RSI index heading higher and a ADX index on a rise, not to mention a divergence between the +DI and –DI lines, the U.S. benchmark stock index is anticipated to retest an all-time high at 23620.00.
Trade suggestion
Buy Stop at 23520.00, Take profit at 23620.00, Stop loss at 23470.00

SP500
As can be seen from the chart, the SP500 index has crossed over a firm resistance at 2588.00 after reversing higher with the support from a couple of moving averages. The short-term MA20 has penetrated the long-term MA50 from below, supporting for further advances. Both ADX and RSI indices are pointing upwards, signaling an extending uptrend.
Trade suggestion
Buy Stop at 2590.50, Take profit at 2596.00, Stop loss at 2588.00

Medtronic Shares Jump High As Fiscal Q1 Earnings Beat Expectations

Shares of Medtronic PLC jumped more than 3 percent in pre-market trading on Tuesday after the world’s largest standalone medical equipment Development Company reported a better-than-expected earnings report for the last quarter.
Medtronic’s shares added 3.05 percent to trade at $81.31 before the opening bell on Tuesday, reversing higher after having closed Monday’s regular trading session in a sour note. The medical device company posted net income of $2.01 billion, or $1.48 a share, in its fiscal second quarter ended October 28th. The reading marked an advance compared to net income of $1.12 billion, or 80 cents a share, in the year-earlier period.
The company reported adjusted per-share earnings came of $1.07 on profit of $1.46 billion. Although the figure declined from $1.56 billion, or $1.12 per share, in last year’s second quarter, it surpassed analysts’ forecast for adjusted EPS of 98 cents.
Trade suggestion
Buy Stop at 81.35, Take profit at 82.00, Stop loss at 81.00
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U.S. Dollar Plummets to Two-month Lows versus Yen after Dovish Fed Meeting Minutes

The U.S. dollar hit a two month low versus its Japanese counterpart on Thursday after having stumbled overnight due to the minutes of the Federal Reserve’s latest meeting which triggered speculation that the U.S. central bank might not tighten U.S. policy as aggressively as previously thought.
The greenback dropped 0.1 percent against the yen in early European trading session on Thursday, sending the pair USD/JPY to as low as 111.150 – the weakest level since September 20th. The pair plunged by as much as 0.7 percent on Wednesday, marking the largest single-day fall since May.
The minutes of the Fed’s last meeting showed some of the central bank’s policymakers were concerned about persistently low inflation. Meanwhile, Fed Chair Janet Yellen on Thursday said that she was also uncertain about the outlook for inflation.
Although a move of the Fed raising rates to between 1.25 and 1.5 percent in December is still almost fully priced in, markets pared back pricing for more hikes next year. Indeed, Fed fund futures indicated that market participants only forecast the rate to rise to as high as 1.75 percent by the end of next year.
Today Japanese financial markets shut for a public holiday while U.S. markets will be closed for the Thanksgiving holiday. Therefore, trading conditions were thinner than usual.
Trade suggestion
Sell Stop at 111.150, Take profit at 110.750, Stop loss at 115.350
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Daily Technical Analysis
Asian markets were mostly subdued on Thursday with trading conditions thinner than usual as Japanese financial markets shut for a public holiday while U.S. markets will be closed for the Thanksgiving holiday. The MSCI Asia Pacific Index increased less than 0.05 percent, lingering near its highest on record. While other Asian stock markets closed flat, Chinese equities and shares in Hong Kong fell sharply.
Indeed, the Shenzhen Composite index tumbled by nearly 3 percent while the Hang Seng index pared early gains to close 0.93 percent lower. The Shanghai Composite Index recorded its biggest slide since December with a decline of nearly 2.3 percent. Market participants have been rattled in recent weeks by a bond market rout and concerns the government is trying to rein in gains in surging stocks.
In Europe, shares also declined with the Stoxx Europe 600 Index shrinking 0.5 percent. The U.K.’s FTSE 100 Index dropped 0.5 percent to trade at the lowest in more than a week while Germany’s DAX Index lost 0.6 percent to hit the lowest in more than seven weeks. France's CAC 40 shed 0.2% to 5,341.01 Futures on the S&P 500 Index declined 0.2 percent to 2,590.50. Read More

Technicals
USDCAD
As can be seen from the price chart, the USDCAD’s price action has crossed over a firm support at 1.27000 and looks set to slide further towards another strong handle at 1.26300. The short-term MA20 is heading towards the long-term MA50 that shows a strengthening bearish force in the market. With the RSI index heading downwards and the ADX index edging higher with a convergence between the –DI and +DI lines, the pair is expected to trade lower.
Trade suggestion
Sell Stop at 1.26800, Take profit at 1.26300, Stop loss at 1.27000
AUDNZD
ADX index has been trading sideways to lower with lower highs formed in the price chart while a support at 1.10600 is holding back the prices from falling lower. RSI index remained under the 50 line, which indicates a dominating bearish force in the market. A support at 1.10100 is anticipated to be tested.
Trade suggestion
Sell Stop at 1.10600, Take profit at 1.10100, Stop loss at 1.10800
EURUSD
EURUSD has been trading in a steady uptrend with the support from a couple of moving averages that are lingering below the price action. The long-term MA50 has approached the short-term MA20, further reinforcing the uptrend. Bothe the ADX and RSI index are on a strong rise, signaling an extending upbeat moves.
Trade suggestion
Buy Stop at 1.18400, Take profit at 1.18800, Stop loss at 1.18200
Natural Gas
Natural gas futures prices have been on a downtrend under downward pressure from a couple of moving average. As can be seen from indicator windows, while the RSI index is heading lower, the ADX index is on a rise with a widening gap between the –DI and +DI lines, which indicates a strengthening bullish force in the market and suggests further declines for the pair.
Trade suggestion
Sell Stop at 2.9450, Take profit at 2.9050, Stop loss at 2.9600

U.S. PCE Inflation Report and China Manufacturing Data Draw Attention, OPEC Meeting Highly Awaited
U.S. shares recorded another weekly gain after two out of three major stock indices finished at all-time highs Friday. The S&P 500 added 0.21 percent to 2,602.42, closing at a record. The Nasdaq Composite Index gained 0.32 percent to 6,889.16, also clinching an all-time high. Meanwhile, the Dow Jones Industrial Average inched 0.1 percent higher to 23,557.99, less than half a percentage point from its record finish at 23,590.83. For the week, the S&P 500 and the Dow both posted a weekly gain of 0.9%, and the Nasdaq rose 1.6 percent.
By contrast, the U.S. dollar hit its lowest since Sept. 25 on Friday and marked its third weekly loss in a row on Friday, weighed down by concerns that the Federal Reserve may be hesitant to deliver further interest-rate increases next year due to stubbornly low inflation. The ICE U.S. Dollar Index lost 0.5% to 92.781, a two-month low. While a rate hike in December is still almost fully priced in, investors pared back expectations for further rate hikes in 2018, which puts pressure on the dollar.
On the data front, a pair of surveys of American companies showed that domestic businesses grew in November at the slowest pace in four months. Indeed, the Markit flash manufacturing PMI dropped to 53.8 from 54.6, while the flash services PMI edged lower to 54.3 from 54.6.
In the week ahead, market participants will focus on comments from a number of Federal Reserve speakers, including Fed Chair Janet Yellen testifies on the economy on Capitol Hill, before the Joint Economic Committee on Wednesday. One day before, Fed governor Jerome Powell, selected by President Donald Trump as the next Fed chair, is scheduled to appear before the Senate Banking Committee for his confirmation hearing.
U.S. second estimate of GDP growth for the third quarter will be released on Wenesday amidst expectations calling for a small upward revision from 3.0% to 3.2%.
After Fed’s policymakers’ speeches, the Commerce Department is due to publish data personal income and consumer spending for October, which include the personal consumption expenditures (PCE) inflation data, the Fed’s preferred metric for inflation on Thursday. Analysts expect the report to show U.S. core PCE price index advanced by 0.2% last month, which would send the index 1.4% higher on an annualized basis.
This week’s calendar also features reports on ISM manufacturing sector growth, CB consumer confidence, new home sales, pending home sales and monthly auto sales
Turning to the euro, the single currency added nearly 0.7 percent on Wednesday to trade at as high as $1.1932 – the strongest level since September 22. For the week, the common currency jumped 1.14%, its second consecutive weekly gain of more than 1%.
Next week, the euro zone will publish flash inflation figures for November on Thursday, which is forecast to rise 1.6 percent following an increase of 1.4% in October. The core figure, which strips out volatile energy and food prices, is anticipated to increase by 1.0% from volatile energy and food prices. CPI reports from Germany, France, Italy and Spain will also be on the agenda.
In China, the Federation of Logistics and Purchasing is to release data on November manufacturing sector activity on Thursday with expectations for a modest downtick to 51.5 from a reading of 51.6 in October. Meanwhile, the Caixin manufacturing index, which focuses more on small and mid-sized firms, is due on Friday and is expected to dip by 0.1 points to 50.9.
U.S. oil prices finished at a 2½-year high in an abbreviated session on Friday. While West Texas Intermediate crude futures for January delivery rose 1.64 percent to $58.95 a barrel, settling at levels not seen since the summer of 2015, Brent futures added 0.28% to trade at $63.73. Both global crude oil benchmarks logged four consecutive weekly gains.
Next week, Oil ministers from the Organization of Petroleum Exporting Countries and other major producing countries will meet in Vienna on Thursday to decide whether to extend their current production agreement beyond a March 2018 deadline.
Market analysts forecast that the oil cartel would extend output cuts for a further nine months until the end of next year.

Sterling Jumps to Two-month Highs Vs Dollar Following Brexit Progress Reports
The British pound strengthened versus almost all of its major rivals on Wednesday after multiple media reports showed that the European Union and the United Kingdom reached a deal on the so-called Brexit bill.
Sterling jumped more than 0.6 percent against its American counterpart in early European trading session on Wednesday, sending the pair GBP/USD to as high as $1.34250 – the strongest level in two months. The pound has been boosted by news that British and EU negotiators had broken the deadlock on the Brexit divorce bill which is the amount of money the U.K. would pay the E.U. after it leaves the Union.
According to market sources, an agreement-in-principle has been struck over the EU’s demand for a 60 billion euro (roughly $71 billion) financial settlement, which would allow talks to move on to other issues such as trade and future relationship between the U.K. and the EU.
Trade suggestion
Buy Stop at 1.34250, Take profit at 1.34650, Stop loss at 1.34050
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Technicals Analysis
European stock markets advanced on Wednesday following gains on Wall Street overnight and most Asian benchmarks. Investor sentiment was boosted after the U.S. Senate budget committee advanced the Republican tax bill. The MSCI Asia Pacific Index rose 0.3 percent while the Stoxx Europe 600 Index headed for a three-week high with all industry sectors trading in positive territory. The index soared 0.7 percent.

Germany’s DAX Index also traded higher, up 0.7 percent and France’s CAC 40 Index jumped more than 0.5 percent. By contrast, U.K. shares declined on the back of a strengthening British pound. The U.K.’s FTSE 100 Index shed 0.5 percent, which is the largest dip in two weeks. The Shanghai Composite Index and Australia’s S&P/ASX 200 Index rose 0.1 percent and 0.5 percent, respectively. While Hong Kong’s Hang Seng Index was down less than 0.1 percent, the Kospi index was flat.
The British pound strengthened versus almost all of its major rivals on Wednesday after multiple media reports showed that the European Union and the United Kingdom reached a deal on the so-called Brexit bill. According to market sources, an agreement-in-principle has been struck over the EU's demand for a 60 billion euro (roughly $71 billion) financial settlement, which would allow talks to move on to other issues such as trade and future relationship between the U.K. and the EU.
Crude oil futures remained weak on Wednesday after the American Petroleum Institute released a surprise build in U.S. weekly crude inventories. January West Texas Intermediate crude and Brent dropped at least 0.34 percent. The API on Tuesday reported that U.S. crude supplies climbed by 1.8 million barrels for the week ended Nov. 24 amidst expectations calling for a decline of 3 million barrels. Supply data from the Energy Information Administration will be released Wednesday.

EURGBP
EURGBP has broken below an upward trend line which connects higher lows. The pair resumed its downtrend following a brief correction and is heading towards a firm support at 0.88000. While the RSI index has tumbled to as low as 33.69, the ADX index reversed higher with a widening gap between the –DI and +DI lines, which suggests a strengthening bullish momentum in the market.
Trade Suggestion
Sell Stop at 0.88450, Take profit at 0.88000, Stop loss at 0.88650

EURCHF
EURCHF rebounded after having hit supports from a couple of moving averages. Recent upbeat moves sent the market back into the bullish territory, as indicated by the RSI index that has edged higher to as high as 55.18. The ADX index also reversed higher and witnessed a divergence between the +DI and –DI lines, signaling further advances for the pair.
Trade Suggestion
Buy Stop at 1.16800, Take profit at 1.17200, Stop loss at 1.16600

Natural Gas
Natural gas gapped up on Tuesday and continued to sustain its bullish trend further above a couple of moving averages. The commodity prices are facing a firm resistance at 3.1500 as the market as inched into the overbought zone. However, a breakout is anticipated as buyers are still dominating in the market with a ADX index on a strong rise.
Trade Suggestion
Buy Stop at 3.1500, Take profit at 3.2150, Stop loss at 3.1200

COPPER
Copper has been moving sideways around a firm support at 3.0700. As can be seen from the chart, the short-term MA20 is pointing downward, looking set to penetrate the long-term MA50 from above, which indicates a strengthening bearish force in the market. A support at 3.0350 is within the sight.
Trade Suggestion
Sell Stop at 3.0650, Take profit at 3.0350, Stop loss at 3.0800

DAX 30 Index
Germany’s DAX 30 index has been on a steady uptrend after having rebounded from a significant level at 100.00% Fibonacci retracement. The stock benchmark index is forecast to trade higher given a strong bullish momentum in the market. Both RSI and ADX indices are heading upwards, suggesting further moves that can bring the price to as high as 13245.00.
Trade Suggestion
Buy Stop at 13160.00, Take profit at 13245.00, Stop loss at 13120.00

DAILY REPORT ON DECEMBER28, 2017

In the report released by New York Stock Exchange, on Wednesday short interest on the fell 0.2 percent in mid-December. Short interest fell to about 16.350 billion shares as of December 15, compared with 16.387 billion shares as of Nov. 30. Investors who sell securities short borrow shares and then sell them, expecting the stock to fall so they can buy the shares back at the lower price.
According to a Resic Inc report the U.S. apartment vacancy rate increased in fourth quarter from the third as supply exceeded demand. The national apartment vacancy rate rose to 4.5% from 4.4%, the real estate research firm said.
U.S. stocks edged higher in late morning trading on Wednesday, supported by gains in tech and healthcare shares. The Dow Jones 30 rose 0.11% (28.09 points), the S&P 500 increased 0.08% (2.12 points) and Nasdaq100 was up 0.0.04% (3.09 points).
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Technicals

EURUSD

EURUSD continues to see bullish forces underpinning the market. The price action is hovering around the upper band of the Bollinger bands. The MACD has made a positive crossover indicating an uptrend. The 20 day EMA has made a positive crossover to the middle band of the Bollinger bands. Major resistance is at 1.19640 and support is at 1.18790
Trade suggestion:
Buy stop at 1.19360, take profit at 1.19640, stop loss at 1.19002

GBPUSD

GBPUSD has made a break out above the 61.8% Fibonacci retracement level (from 1.3028 to 1.3650). The RSI is currently at 57.20. The MACD is ready to make a positive crossover. Important resistance is at 1.34762 and support is at 1.34101.
Trade suggestion:
Buy stop at 1.34465, take profit at 1.34760, stop loss at 1.34105

AUDUSD

AUDUSD is behaving bullish. The MACD has is positive indicating an uptrend. The market is trading above all the moving averages (9 day and 20 day). Major resistance is at 0.78080 which is the 50% Fibonacci retracement level (from 0.74960 to 0.81201).crucial support is at 0.77790.
Trade suggestion:
Buy stop at 0.77980, take profit at 0.78080, stop loss at 0.77915

LTCUSD

LTCUSD has turned bearish. The market is hovering around the 38.2% Fibonacci retracement level (from 127.220 to 414.50).the price action is trading below all the moving averages (9 day and 20 day). The RSI is at 50.949. The MACD is placed in the negative zone below the signal line.
Trade suggestion:
Buy stop at 246.76, take profit at 269.93, stop loss at 230.13

GOLD

Gold is behaving bullish, and is targeting the 61.8% Fibonacci retracement level (from 1203 to 1361.7). The MACD is at its high. The RSI is at 63.52. The market is trading above all the moving averages (9 day and 20 day). Crucial resistance is at 1300 and support is at 1287.
Trade suggestion:
Buy stop at 1293, take profit at 1305, stop loss at 1287

SILVER

Silver is trading positive. The market is trading above all the moving averages (9 day and 20 day). The 9 day EMA has made a positive crossover above 20 day EMA. The RSI is at 61.49. The MACD is also positive. The price is currently testing the upper band of the Bollinger bands, indicating a strong uptrend.
Trade suggestion:
But stop at 16.817, take profit at 16.897, stop loss at 16.761
DOW JONES30
Dow Jones30 is moving sideways and hovering above the middle band of the Bollinger bands. The market is trading above all the moving averages (9 day and 20 day). The MACD has made a positive crossover. The RSI is moving sideways at 55.113.Important resistance is at 24843 and support is at 24756.
Trade suggestion:
Buy stop at 24815, take profit at 24850, stop loss at 24798

DAILY REPORT ON DECEMBER29, 2017

Global equity issuance rose by almost a fifth in 2017 and bankers expect issuance to increase further in 2018 as the improving global economy and buoyant stock markets drive larger flotations and rights issues to finance acquisitions. Companies raised $780.2 billion in equity in 2017, up 19 percent from $656.4 billion last year, Equity Capital Markets (ECM) data up to Dec. 26 showed.
Investors poured $24.1 billion into U.S.-based stock funds in the week to Dec. 27, Lipper said on Thursday, sending a gift to equity markets already on pace to record a year of double-digit percentage gains. Cash is also shuffling around during a typically active period for funds, despite holidays, as investors plan for taxes and report end-of-year performance statistics. Equity fund outflows totaled $22.2 billion the week prior.
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Technicals
GBPUSD
Fig: GBPUSD D1 Technical chart
GBPUSD has made a higher bottoms formation pattern at 1.34360 in the daily chart. The RSI is currently at 59.84. The MACD is ready to make a positive crossover. Important resistance is at 1.34890 and support is at 1.34260. On Thursday the market had closed above the 78.6% Fibonacci retracement level (from 1.25860 to 1.36561).Gradually the market is on the rise with a positive bias.
Trade suggestion:
Buy stop at 1.34710, take profit at 1.34890, stop loss at 1.34271
USDJPY
Fig: USDJPY D1 Technical chart
USDJPY is trading in the negative zone, after testing the 78.6% Fibonacci retracement level (from 107.34 to 114.75). The MACD is ready to make a negative crossover. The RSI is placed below 50 at 46.908. Currently the market is trading below all the moving averages (9 day and 20 day).
Trade suggestion:
Sell stop at 112.60, take profit at 112.48, stop loss at 112.70
EURUSD
Fig: EURUSD D1 Technical charts
EURUSD has made higher highs on the daily chart. Currently the market is testing the upper band of the Bollinger bands. The RSI is at 65.22. The MACD is also positive. Important resistance is at 1.1977, which is the 78.6 % Fibonacci retracement level (from 1.15445 to 1.20950). Major support is at 1.19230.
Trade suggestion:
Buy stop at 1.1963, take profit at 1.1977, stop loss at 1.19310
ETHUSD
Fig: ETHUSD D1 Technical chart
ETHUSD has been in a consolidation phase and currently the market is indicating a positive candle on the daily chart. The price action has maintained above the moving averages (9 day and 20 day).The RSI is at 60.66. The MACD is ready to move into positive territory. Crucial resistance is at 785.14 and support is at 385.76.
Trade suggestion:
Buy stop at 720.12, take profit at 755.05, stop loss at 700.12
SILVER
Fig: SILVER D1 Technical chart
Silver is hovering near the 50% Fibonacci retracement level (from 15.641 to 18.164). The market is trading above all the moving averages (9 day and 20 day). The 9 day EMA has made a positive crossover above the 20 day EMA. The RSI has made a pullback at 62.78. The MACD is positive. The price is currently testing the upper band of the Bollinger bands, indicating a strong uptrend.
Trade suggestion:
Buy stop at 16.915, take profit at 16.978, stop loss at 16.850
GOLD
Fig: GOLD D1 Technical chart
GOLD is forming pattern of higher highs on the daily chart. The market is currently testing the upper band of the Bollinger bands, indicating a strong uptrend and hovering near the 50% Fibonacci retracement level (from 1237.37 to 1362.65). The RSI is at 65.32. The MACD is also positive.
Trade suggestion:
Buy stop at 1297.60, take profit at 1308, stop loss at 1288

DAX30
Fig: DAX30 D1 Technical chart
DAX30 is currently trading below both moving averages (the 9 day and the 20 day). The RSI is placed below 50, at 44.199. The MACD has made a negative crossover and moved below the signal line. The 9 day EMA has made a negative crossover below the middle band of the Bollinger bands. Important resistance is at 13058 and support is at 12888.92.
Trade suggestion:
Sell stop at 12950, take profit at 12920, stop loss at 13020

DAILY REPORT ON JANUARY 2, 2018

The U.S. medical device tax of 2.3% on the sale of medical device went back into effect on Monday after a two-year suspension, despite opposition by U.S. lawmakers and the medical manufacturing industry. The excise tax on catheters, pacemakers and other healthcare products was among several fees and taxes imposed in January 2013 to help fund the Affordable Care Act, also known as Obamacare. It was projected to raise roughly $30 billion over a decade.
Analysts expect a strong pullback this year for the Dow. The Dow Jones30 fell by 118.29 points and closed at 24,719.2, the S&P 500 was 0.52% down and Nasdaq100 was lower by 0.86% (13.27 points) as on 30th December 2017Germany factory growth hits record higher in December as strong foreign demand propelled growth in activity to a record high. Markit’s Purchasing managers index (PMI) for manufacturing has jumped to an all-time high of 63.3 from 62.5 in the previous month.

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Technicals
EURUSD
Fig: EURUSD D1 Technical charts
EURUSD has made higher highs on the daily chart. Currently the market is testing the upper band of the Bollinger bands. The RSI is at 70.75. The MACD is also positive. Important resistance is at 1.2092, which is the 78.6 % Fibonacci retracement level (from 1.15445 to 1.20920). Major support is at 1.19230.
Trade suggestion:
Buy stop at 1.2036, take profit at 1.2048, stop loss at 1.2009
AUDUSD
Fig: AUDUSD D1 Technical charts
AUDUSD has formed a higher bottoms pattern at 0.7840 on the daily chart. The RSI is currently at 75.38. The MACD is already moving higher into the positive zone. Important resistance is at 0.7871 and support is at 0.7759. The market had closed above the 78.6% Fibonacci retracement level (from 0.7499 to 0.8121).Gradually the market is on the rise with a positive bias.
Trade suggestion:
Buy stop at 0.7836, take profit at 0.7850, stop loss at 0.7818
USDJPY
Fig: USDJPY D1 Technical charts
USDJPY is trading sideways, below the 50% Fibonacci retracement level (from 110.82 to 114.72). The MACD has made a negative cross over. The RSI is placed below 50 at 46.631. Currently the market is trading below all the moving averages (9 day, 20 day, and 50 day). The market is hovering below 50 day EMA.
Trade suggestion:
Sell stop at 112.66, take profit at 112.50, stop loss at 112.77
ETHUSD
Fig: ETHUSD D1 Technical charts
ETHUSD has made higher highs on the daily chart. Currently the market is testing the upper band of the Bollinger bands. The RSI is at 67.77. The MACD is ready to make a positive crossover. Important resistance is at 860.89, which is the 100 % Fibonacci retracement level (from 274.45 to 860.89). Major support is at 787.14.
Trade suggestion:
Buy stop at 842, take profit at 860.89, stop loss at 787
SILVER
Fig: SILVER D1 Technical charts
Silver is hovering above the 78.6% Fibonacci retracement level (from 15.634 to 17.372). The market is trading above all the moving averages (9 day, 20 day, 50 day and 100 day). The 9 day EMA is ready to make a positive cross over above the 100 day EMA. The RSI is at 67.29. The MACD is positive. The price is currently testing the upper band of the Bollinger bands, indicating a strong uptrend.
Trade suggestion:
Buy stop at 17.110, take profit at 17.189, stop loss at 17.070
COPPER
Fig: COPPER D1 Technical charts
Copper is hovering below the 100% Fibonacci retracement level (from 2.196 to 3.297). The market is trading above all the moving averages (9 day, 20 day, 50 day and 100 day). The RSI is at 74.48. The MACD is positive.
Trade suggestion:
Sell stop at 3.2890, take profit at 3.2701, stop loss at 3.2990
DOW JONES30
Fig: DOW JONES 30 D1 Technical charts
DOW JONES30 has pulled back after testing the 100% Fibonacci retracement level (from 23213.12 to 24865.80). The MACD has made a negative cross over. The RSI is at 67.79. The 20 day EMA has made a negative cross over below the middle band of the Bollinger bands.
Trade suggestion:
Sell stop at 24780, take profit at 24700, stop loss at 24795