Daily Technical Analysis by Capital Street FX

Pfizer’s Profit Misses Projections, 2016 EPS Outlooks Cut

Shares of Pfizer Inc were down in premarket trading, as the largest U.S. drugmaker surprised investors by announcing that it is ending development of a cholesterol-lowering treatment, which had been expected to be a blockbuster. The pharmaceutical corporation also reported third-quarter earnings that missed analysts’ forecasts.

Pfizer earned 61 cents per share in three months to September, falling short of average analyst estimate by 1 cent. The New York-based drugmaker shaved 4 cents off its 2016 earnings forecast as a result of the discontinuation of its cholesterol treatment program.

The company lowered the upper end of its 2016 adjusted earnings forecast by 5 cents to $2.43 from $2.48 per share, while reaffirming the lower end at $2.38. Pfizer also expects revenue in the range from $52 billion to $53 billion, bumping up the low end of the revenue forecast by $1 billion.

Trade suggestion
Sell Limit at 31.50, Take profit at 31.00, Stop loss at 32.00


Start Trading Forex, Indices, Commodities And Hundreds of Other Markets With Capital Street FX Now!

Concerns Over Fed Meeting and Presidential Election Drag on USDJPY

Japanese Yen reclaimed lost ground against the U.S dollar, sending the pair USDJPY to the lowest since last Wednesday at 104.225. The USD wobbled notably amid news that presidential polls have tightened significantly in recent days and ahead of a series of economic data and important events coming in the next two weeks.

The Yen weakened slightly after the Bank of Japan left its monetary policy unchanged while pushing back the timing for hitting its inflation target again on Tuesday. The BOJ Governor Haruhiko and his colleagues maintained targets for controlling short-term and long-term rates as well as asset-purchase programs, but shifted the projected timing for reaching its inflation target of 2 percent to “around fiscal 2018”.

The central bank stated that it would continue buying Japanese government bonds at an annual pace of about 80 trillion yen ($764 billion), and made no changes to its previous plans for purchases of other assets, such as exchange-traded funds.

The Yen rebounded as the greenback weakened across the board. The U.S dollar failed to benefit from higher-than-expected manufacturing data that supported the case of the Federal Reserve to increase interest rates at its December meeting.

The Institute for Supply Management reported its manufacturing index rose to 51.9% in October, the highest in three months. The reading was slightly ahead of 51.7% forecast by economists. A similar survey of industry executives produced by IHS Markit also pointed to an improvement in manufacturing activities last month. The Markit index hit a one-year high at 53.4.

However, the U.S construction spending released by the Commerce Department unexpectedly declined 0.4% in September, as spending on private nonresidential structures recorded the biggest decline in nine months.

Topping to mixed data that could not power the greenback’s strength, recent polls showing the tightening presidential race between Republican nominee Donald Trump and Democratic rival Hillary Clinton also weighed on the U.S dollar. Enthusiasm for the Democratic candidate has warned since FBI Director James Comey on Friday said the bureau would reopen the investigation into Clinton’s misuse of a private email server.

The U.S Federal Reserve will announce its rate decision on Wednesday, and is expected to leave rates unchanged ahead of the presidential election next week.

USDJPY has retreated below the 23.6% Fibonacci retracement at 104.750 after moving sideways above this level for two days. The price action has crossed over both two moving averages and brought market back into the bearish territory. As can be observed from indicator windows, RSI index has confirmed the downtrend by dropping below the 50 line – which devides the bullish zone from the bearish area.

Trade suggestion

Sell Stop at 104.250, Take profit at 103.160, Stop loss at 104.600

Daily Report on November 2, 2016

Asian shares tumbled on Wednesday, following U.S equities’ footsteps amid polls indicating a closing gap between Republican U.S. presidential candidate Donald Trump and his Democratic rival Hillary Clinton on the race to the White House. Some recent polls even showed Trump ahead with 46 percent support compared to Democrat Hillary Clinton’s 45 percent. This is the first time since May that the Republican nominee has taken the lead, which resulted from a lack of enthusiasm among Clinton supporters.

Against the background of share selloff, safe-haven assets rallied. The yen rose for a second day, while the Swiss franc and gold were approaching their highest levels in almost a month. The greenback, which is typically considered as one of the safe havens, slumped today. The U.S dollar fell to a three-week low against the euro and lost ground versus the yen overnight ahead of the Federal Reserve’s rate decision which will be announced later on Wednesday.

New Zealand dollar reached two-week highs in the wake of tightening labor market. In a report released earlier today, Statistics New Zealand said that the country’s unemployment rate unexpectedly fell to a seasonally adjusted 4.9% in three months to September, from 5.1% in the preceding quarter. Meanwhile, employment grew 6.1% on a yearly basis and 1.4% quarter-on-quarter with an increasing labor force participation.

Crude oil prices fell for a fourth day on Wednesday following industry data showed a surprise build in inventories. The American Petroleum Institute (API) on Tuesday reported crude stockpiles increased by 9.3 million barrels in the week to Oct. 28, more than nine times the amount expected by analysts polled by Reuters.

Technicals
GBPUSD

Fig: GBPUSD H4 Technical Chart
GBPUSD has been trading sideways since the start of this week after a short rally from the low at 1.21426. The pair is on track to hit the upper boundary at 1.23300. While the short-term MA20 has converged with the long-term MA50 from below, the RSI index is moving in the bullish zone, supporting potential upbeat moves.
Trade suggestion
Buy Stop at 1.22500, Take profit at 1.23300, Stop loss at 1.22100

CADJPY

Fig: CADJPY H4 Technical Chart
CADJPY has broken through two major Fibonacci levels at 38.2% and 50.0% and is heading downwards towards the 61.8%. The pair failed to bounce back from the 50.0% level at 77.519 and is forecast to fall deeper as signal for a continual downtrend has come from two MAs which have just converged. A low-level RSI and a soaring ADX consolidate the uptrend.
Trade suggestion
Sell Stop at 77.400, Take profit at 77.020, Stop loss at 77.600

EURCAD

Fig: EURCAD H4 Technical Chart
After a correction on Monday that brought the pair near the 23.6% retracement, EURCAD has surged strongly. However, as the 38.2% level is within the sight, the rally seems limited. Furthermore, RSI index has penetrated the overbought market while +DI is heading down, suggesting potential reversal. Hence, 38.2% level can be aimed as near-term target.
Trade suggestion
Buy Stop at 1.48300, Take profit at 1.48800, Stop loss at 1.47900

GOLD

Fig: GOLD H4 Technical Chart
Gold has been on a strong rally since it bound back from the 38.2% Fibonacci retracement. The precious metal is approaching another important Fibonacci level at 23.6% which is at 1297.68. Gold’s bullish sentiment has been fueled by two MAs placed below the price action. However, as market has entered the overbought zone and buyers seem to get week (as indicated by the ADX chart), the yellow metal may move sideways or pull back from the 23.6% handle unless it gets a boost from the fundamental side.
Trade suggestion
Buy Stop at 1292.50, Take profit at 1297.68, Stop loss at 1287.00

WTI

Fig: WTI D1 Technical Chart
U.S. WTI is about to hit the 23.6% retracement at 46.00 which is also the lowest level since September 28th. A strong plunge has sent the commodity to trade below both the DMA20 and DMA50 and brought the market into the bearish territory. Crude investors are waiting for U.S official stocks data due later today. A larger-than-expected increase in U.S stockpiles may damp the commodity price to as low as 44.50.
Trade suggestion
Sell Stop at 46.00, Take profit at 44.50, Stop loss at 46.80

NASDAQ 100

Fig: NASDAQ 100 H4 Technical Chart
The U.S. NASDAQ 100 index fell to as low as 4723.63 yesterday. The index simultaneously breached the support at 4700.00 before pulling back from the lowest level since mid-September. However, the price failed to get back above the 4700.00 handle and may create a gap down following the selloff of global stock market. The support at 23.6% level is within the sight.
Trade suggestion
Sell Stop at 4745.00, Take profit at 4660.00, Stop loss at 4775.00

Copper Retreats From Two-month Highs, Time To Buy The Dips

Copper has fallen for the first time on Wednesday following a seven-day winning streak. The metal hit two-month highs on Tuesday as it was given fresh support from Chinese economic data which indicated robust demand for industrial metals.

Today’s fall is believed to be a correction after hefty gains as investors took profit. Manufacturing activities in China, the world’s biggest consumer of copper, were reported to expand at the fastest pace in more than two years in October. According to figures released on Tuesday, the PMI stood at 51.2 in October, much stronger than September and the highest reading since July 2014.

An expansion in Chinese manufacturing sector is expected to keep fueling demand for the copper.

Trade suggestion

Buy Stop at 2.2110, Take profit at 2.2300, Stop loss at 2.2000

BRENT/USD signal by Capital Street FX

From GMT 09:15 1/11/2016
Till GMT 21:00 2/11/2016

Sell at 47.50
Take profit at 46.40
Stop loss at 48.00

Alibaba’s Quarterly Results Top Estimates – Long Position Suggested

Shares of Alibaba Group Holding Ltd added 4.3% premarket to $105.50 after the Chinese e-commerce giant reported much better than expected fiscal second quarter earnings.

The Hangzhou, China-based company registered earnings per share of $0.79 for the last quarter, which was nine cents better than market’s $0.70 estimate. Alibaba’s revenue soared 55% from last year to $5.14 billion, betting analysts’ view of $5.05 billion.

The company reported revenue from core commerce surged 41%, while cloud computing revenues rose 130%. Additionally, revenue from digital media and entertainment jumped 302%, while innovation initiatives and other revenue rose 78% from the year-ago period.

Trade suggestion
Buy Limit at 98.00, Take profit at 100.00, Stop loss at 97.00

Daily Report on November 3, 2016

Global stocks’ selloff deepened on Thursday as a tightening race for the U.S. presidency triggered uncertainties about the outcome of Nov. 8 vote, which prompted investors to flock into traditional havens such as Japanese Yen, Swiss Franc and gold. U.S. equity index futures joined the U.S dollar and the Mexican peso on the defensive after Fox News reported that a FBI probe related to Democratic nominee Hillary Clinton’s misuse of private e-mail was intensifying.

Federal Reserve’s rate decision on Wednesday hit the market little since the central bank decided to stand pat on its monetary policy as markets expected. Fed kept the option open for a hike by year-end, stating in its statement that it needs “some” further evidence of improving inflation and employment before raising interest rates.

The British Pound is on the verge of wide fluctuation today as investors are waiting for data release on the country’s service PMI and the Bank of England’s monetary policy announcement which comes with the U.K’s quarterly Inflation Report. Markets expect no changes made to the BOE’s key rates and will focus on the bank’s economic forecasts, particularly expectations for inflation.

But before that, the Cable may vacillate strongly as three senior judges in London will publish their decision on whether the Parliament can play a role in the process of triggering Article 50. If Prime Minister Theresa May cannot begin Britain’s exit from the European Union without permission from Parliament, the process could be delayed by more than a year.

Technicals
EURGBP

Fig: EURGBP H4 Technical Chart
EURGBP has been trapped in a trading range for almost a month. The pair has slid since it nearly hit the upper boundary at 0.90555. The price action has crossed over two MAs, consolidating the downtrend. RSI that surpassed the 50 line also supports the down moves. The pair may fall as low as 0.88800 – which is the lower boundary.
Trade suggestion
Sell Stop at 0.89500, Stop loss at 0.89800, Take profit at 0.88800

NZDUSD

Fig: NZDUSD H4 Technical Chart
NZDUSD has been struggling around the one-month highs at 0.73000 after a strong rally from the 23.6% Fibonacci level. Bulls have lost their steam which sent the prices to move sideways. The upside seems limited as the market has been overblown while the major level at 0.73600 is within the sight.
Trade suggestion
Sell limit at 0.73600, Stop loss at 0.73800, Take profit at 0.73000

EURNZD

Fig: EURNZD H4 Technical Chart
As can be seen from the chart, EURNZD entered a short correction after falling to as low as 1.51692. However, a few up moves failed to help the pair breach the 23.6% level at 1.52546. The pair pulled back at this handle and is heading towards the 0.0% Fibonacci retracement. With RSI indicating a market in favor of bears, the pair is anticipated to fall deeper.
Trade suggestion
Sell Stop at 1.51800, Stop loss at 1.52650, Take profit at 1.51300

SILVER

Fig: SILVER H4 Technical Chart
Silver fell back below the 38.2% level after breaking above this handle on Tuesday. The metal hit one-month high at 18.716 before giving up its bullish strength and reversing lower. Silver is struggling with the short-term MA20 when the market has not entered the bearish zone yet, which is pointed out by the RSI. Therefore, there a chance that silver may bounce back after the current correction.
Trade suggestion
Buy Stop at 18.300, Stop loss at 17.950, Take profit at 18.700

Sugar

Fig: SUGAR H4 Technical Chart
Sugar resumed its downtrend after a correction from the low of 21.10. Buyers jumped in as a long streak of declines had brought the market into the oversold zone and opened the chance for buying the dips. However, with downward pressure from two MAs hanging above the chart, sugar is expected to extend its slide.
Trade suggestion
Sell Stop at 21.50, Stop loss at 21.80, Take profit at 21.10

CAC 40

Fig: CAC 40 H4 Technical Chart
France’s CAC 40 has broken through the 23.6% Fibonacci retracement from below after falling for four days in a row to as low as 4397.00. The index pulled back from the overbought zone and is heading upwards to test the resistance at 4495.00. As the %K line is taking the lead, CAC 40 is expected to surge higher.
Trade suggestion
Buy Stop at 4452.60, Stop loss at 4457.30, Take profit at 4495.00

AUD/JPY signals by Capital Street FX

From GMT 07:40 03/11/2016
Till GMT 21:00 03/11/2016

Sell at 78.790
Take profit at 78.000
Stop loss at 79.300

Sterling Takes Off After BOE Holding Rates, Can It Survive Friday’s NFP?

British Pound rallied to four-week highs versus the U.S dollar on Thursday, powered by both economic and political factors. The Bank of England (BOE) decided to hold its rates unchanged after a court ruling that the government must hold a vote in Parliament before triggering the Brexit process. Earlier on the day, the U.K’s Services PMI was reported to hit the highest level since January 2016.

The pair GBPUSD hit its peak since October 07th at 1.24940 after the Bank of England kept interest rate intact. In a statement following the rate decision, the BOE Governor Mark Carney stated that the Monetary Policy Committee “have a neutral bias around policy going forward.” It means that the U.K’s central bank not only did not have the intention to cut rates further this year, but it was also considering tightening its monetary policy in the near term.

Carney almost wiped out market’s expectation that the bank will cut the key rate to a new record low by stating on Thursday that “Monetary policy can respond in either direction to changes to the economic outlook as they unfold to ensure a sustainable return of inflation to the target,”.

Sterling, which slumped strongly in the aftermath of Britain’s decision to leave the European Union, has played an important role in pushing up inflation. However, according to the MPC, the current rally in prices may be too strong to support growth. Therefore, a rate hike may be needed if faster-than-expected price gains cause adverse effect to the economy.

Another factor that gave a boost to the Cable today is the decision by a U.K. high court that forces the government to hold a vote in Parliament before triggering the Article 50 to start the two-year countdown to the nation’s exit from the European Union. The participation of Parliament whose members were overwhelmingly pro-EU before the June 23 referendum, may delay Prime Minister Theresa May’s plan to kick off the Brexit negotiations beyond March 2017 – her initial schedule.

In the U.S., the race to the White House has become unpredictable since the FBI reopened its investigation into Clinton’s use of private email while she was Secretary of State. The U.S dollar was weakened after some polls indicated the resurgence of Republican Donald Trump. However, the greenback has regained steam following fresh polls showing Hillary Clinton leading Donald Trump in the presidential race, although the gap is just a few percent points.

Investors are waiting for tomorrow’s monthly payrolls report, which is forecast by economist to show an increase of 174,000 new jobs in October. Upbeat data will strengthen the case for the Fed to raise rate next month. In a statement on Wednesday after the central bank opted to leave rates unchanged, the FOMC said it only needed “some” further evidence that inflation and employment were on track toward their goals to hike.
Fig: GBPUSD H4 technical chart

GBPUSD has broken its trading range from 1.20880 to 1.23300, within which the pair was locked for nearly a month. Sterling rallied sharply but failed to sustain the bullish momentum beyond the 1.24700 level. The pair had to reverse low against this handle also because the market has stepped in the overbought zone. Some corrective moves are expected.

Trade suggestion
Sell Stop at 1.24200, Take profit at 1.23300, Stop loss at 1.24800

Start Trading Forex, Indices, Commodities And Hundreds of Other Markets With Capital Street FX Now!

Daily Report on November 04, 2016

Stock markets extended their selloffs on Friday as investor confidence in riskier assets has been sapped ahead of next week’s U.S. presidential election. According to latest polls, Democrat Hillary Clinton maintained her lead over her rival Donald Trump. However, the presidential race may be tightening just days before Tuesday's vote. Wall Street sagged on Thursday, with the S&P 500's eighth straight losing session marking its longest streak since the 2008 financial crisis.

The MSCI Asia Pacific Index fell 0.9 percent on the last trading day of the week, heading for its worst close in seven weeks. Japan's Nikkei stock index slid 1.3% after trading resumed following a holiday on Thursday. Dragged down by the resurgence of the safe-haven yen, the Japanese benchmark has lost 3.1% for the week, the biggest weekly drop in four months.

In its November Monetary Policy Statement released on Friday, the Reserve Bank of Australia (RBA) kept its output growth and inflation forecasts virtually unchanged, and indicated its contentment with the current cash rate of 1.5%. The central bank expected GDP growth to average between 2.5% and 3.5% to June 2017, and core inflation increasing to 1.5 – 2.5% over the next two years. Stability in Chinese economy, higher commodity prices and record residential building approvals are expected to underpin Australian growth.

In the U.S., the nonfarm payrolls report due later today is forecast to show employers added 175,000 jobs in October. U.S. data on Thursday showed that services industry activity cooled last month amid a slowdown in new orders and hiring. The ISM's non-manufacturing registered at 54.8, below both expectations of 56.0 and last month's 57.1 reading.

Technicals
CADCHF

Fig: CADCHF H4 Technical Chart
CADCHF has been struggling above the 50.0% retracement at 0.72680 since it breached this level yesterday. The pair failed to soar higher as the short-term MA20 is exerting downward pressure on the price. The pair may dip below the 50.0% level again and find its support at 0.72400.
Trade suggestion
Sell Stop at 0.72650, Take profit at 0.72400, Stop loss at 0.72850

AUDJPY

Fig: AUDJPY H4 Technical Chart
Excluding a spike yesterday, the pair has moving sideways for nearly three-day following a steep drop from three-and-a-half-month highs at 80.624. The slide has helped the pair breached the support that is an upwards slopping trendline. With downward pressure from 2 MAs hanging above the price action and the fact that the %K line has crossed over the %D line from above, the pair is expected to break below the 79.000 support.
Trade suggestion
Sell Stop at 79.000, Take profit at 78.700, Stop loss at 79.300

USDCHF

Fig: USDCHF H4 Technical Chart
USDCHF reversed lower after the price action hit the short-term MA20 at 0.97516. The market has escaped from the oversold zone but it still remains in the bearish area. As indicated by the RSI which is pointing downwards, bears are overwhelmingly dominant on the market, suggesting further downtrend.
Trade suggestion
Sell Stop at 0.97400, Take profit at 0.96930, Stop loss at 0.97600

SILVER

Fig: SILVER H4 Technical Chart
After drifting lower to fall back below the 38.2% level at 18.289, silver rebounded and surpassed this handle again. The silver market survived from falling into the bearish territory, which is indicated by RSI index which crawled back from 50 line. Silver is expected to retest the high at 18.700 logged on Wednesday.
Trade suggestion
Buy Stop at 18.350, Take profit at 18.700, Stop loss at 18.165

COFFEE

Fig: Coffee H4 Technical Chart
Coffee has risen strongly since it pulled back from the support at 160.60. As can be seen from the chart, this price action has crossed over the MA20, consolidating the uptrend. As both RSI and ADX indexes are on a rise, the uptrend is strong. Coffee is expected to test the high at 166.70 logged one week ago.
Trade suggestion
Buy Stop at 165.60, Take profit at 166.70, Stop loss at 165.00

Sp500

Fig: SP500 H4 Technical Chart
SP500 index fell off from 23.6% level on Wednesday, recording the first time the price has fallen below this level since early-July. While the %K line and the %D line have neared the 20 threshold, ADX is still rising, supporting the downtrend. RSI may find its support at 2072.00.
Trade suggestion
Sell Stop at 2085.00, Take profit at 2072.00, Stop loss at 2095.00

FTSE 100 Keeps Falling, Weighed by Pound and U.S. Political Jitters

U.K. shares dropped on Friday, extending their losses to the sixth consecutive trading days. The FTSE 100 index headed for its worst weekly performance in 10 months, dragged down by the pound’s rise and the bearish sentiment from losses in U.S. markets.

With only a few shares trading higher, the U.K.’s benchmark lost 1.28% so far to fall to as low as 6,703.91. Uncertainties over the outcome of the White House race have worried investors. The gap between Republican nominee Donald Trump and his Democratic rival Hillary Clinton, who is seen as more positive for financial markets, has been narrowing since last Friday, when the case related to Clinton’s use of private emails was reported to be reopened.

The slide of the FTSE 100 index was also due to a strengthening Pound which has gained momentum since a U.K high court ruled that a parliamentary vote must be held before the government trigger the two-year negotiation on the U.K.’s withdrawal from the European Union. Furthermore, the Bank of England on Thursday decided to leave its rate unchanged, stating that the central bank can even raise rate if inflation grows too fast and cause adverse effects on the economy.

Many blue-chip stocks that had been benefitting from the fall in the pound, now retreated as foreign earnings for multinational companies will be dampened when converted into sterling if the cable strengthens.

Among multinationals, Hikma Pharma led losses on the market as the company’s shares dropped 5.9%, Shire PLC also declined, shedding 3.07%. Other market’s movers including housebuilding companies, with Taylor Wimpey plc losing 3.53% and Persimmon plc dropping 3.93%.

Also on the downtrend, shares of The British Airways parent, International Consolidated Airlines Group SA, plunged 3.59%. IAG cut a key medium-term earnings measure and lowered growth expectations as it adjusts to the post-Brexit vote slide in sterling.

FTSE 100 index has fallen below the 23.6% retracement at 6743.55 and is heading downwards to test the support at 6650.00. The index is under downward pressure from two MAs which hanging above the price action. RSI has entered the oversold area, signalling a pull back soon to come.

Trade suggestion

Sell Stop at 6700.00, Stop loss at 6750.00, Take profit at 6650.00

Kraft Heinz Co. Inches Lower Following Mixed Earnings Results

Shares of Kraft Heinz Co. fell 1.16% in extended session after the food giant posted a mixed third-quarter earnings results. While the company’s profit beat estimates, its revenue fell short of expectations.

The Pittsburgh-based company reported Q3 better-than-expected profit at 83 cents per share, which is higher than Wall Street’s 74 cents EPS estimate. Overall, revenue sales declined 1.5% to $6.27 billion from $6.36 billion, assuming Kraft Foods Group and H.J. Heinz had been merged.

For the quarter ended October 2, the world’s fifth largest food and beverage company witnessed declines in net sales year-over-year in half of its four regions. The U.S., Kraft Heinz Co.’s biggest market, posted a 1.2% retreat, while European market fell 14.5%. Canadian area’s sales edged up 2%, and revenue from the rest of the world rose 4.4%.

Trade suggestion

Buy Limit at 85.25, Stop loss at 88.00, take profit at 84.00

EUR/CHF signal by Capital Street FX

From GMT 16:00 04/11/2016
Till GMT 21:00 04/11/2016

Sell at 1.07700
Take profit at 1.07570
Stop loss at 1.07800

Politics To Overshadow Market Fundamentals In Quiet Data Week

Global financial markets were rattled last week after polls showed the U.S. presidential election race between Democrat candidate Hillary Clinton and Republican nominee Donald Trump was tightening. At the close in NYSE, the S&P 500 index declined 0.17% while the NASDAQ Composite index lost 0.24%. The Dow Jones Industrial Average lost 0.24% to hit a new 3-months low.

Overall, opinion polls still give Clinton the edge in national terms, but a tightening race has sapped market confidence and weighed on the dollar. A solid U.S. employment report for October failed to prevent to greenback from sliding against a basket of the other major currencies on Friday as investors remained cautious ahead of the upcoming U.S. presidential elections.

The Labor Department on Friday said that the U.S. economy added 161,000 jobs in October from the prior month. Economists had expected 175,000 new jobs. The unemployment rate dropped back to 4.9% last month from 5% in September, in line with expectation. The data supported the case that the U.S. central bank will hike interest rates at its next policy meeting in December.

The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, slid 0.26% to 96.94. For the week, the index posted a fall of 1.27%.

Sterling ended the week with gains of 2.74% against the dollar after the U.K. high court ruled Thursday that Prime Minister Theresa May must have parliament’s approval to trigger the Brexit process. For the week ahead, U.K. industrial production and trade balance are scheduled for release, but these reports will matter little to a market focused on the U.S. election.

The same is true for the other currencies but the New Zealand dollar. The Reserve Bank of New Zealand is to announce its benchmark interest rate and publish a policy statement on Thursday. The central bank’s decision may be affected by developments of the market after the U.S Election Day on Tuesday. However, the country’s inflation and trade have been falling even though employment growth, dairy prices and business confidence is improving. Therefore, a rate cut by the RBNZ is expected, especially when its housing market is cooling down.

If RBNZ slash its rate next Thursday, it will stand in sharp contrast to the outlook of the Reserve Bank of Australia, which left rates unchanged this past week. The RBA also issued a statement with a relatively optimistic tone, which helped send the Australian dollar sharply higher versus its major peers. Furthermore, Chinese PMI reports were also better than expected, which helped to boost AUD.

Next week will be a quiet week for the Aussie as no important data of Australian economy will be released. Along with the volatility from the USD, the AUD will be driven by economic reports from China. The Chinese closely-watched monthly export and import readings are due on Tuesday. Exports are forecast to fall at an annual rate of 6.0% in October, while Imports are also estimated to continue falling at the rate of -1.0% in the same month. However, October’s readings are expected to show an easing in the rate of decline compared to the prior month.

Meanwhile, inflation numbers out on Wednesday are expected to show further firming of prices in China with both consumer and producer price inflation edging higher. Annual CPI is forecast to rise by 2.1% in October, up from 1.9% the previous month. Besides, PPI is forecast at 0.8% in October after turning positive for the first time in four years in September.

Daily Report on November 07, 2016

Global stocks and the U.S dollar were given a fresh boost on Monday after the Federal Bureau of Investigation said it maintained the view that Hillary Clinton’s handling of her e-mails wasn’t a crime. The news dispelled a cloud over the Democrat candidate's presidential campaign two days before the U.S. election, and is likely to rescue the S&P 500 Index from its longest losing streak in more than 35 years.

In in a letter to Congress on Sunday, director James Comey said that no criminal charges were warranted against Democrat Hillary Clinton, after the FBI reviewed new e-mails potentially related to its investigation of Clinton’s use of a private e-mail server. The greenback rose for the first time in seven days against a basket of major currency following the news.

Amidst investor optimism about the victory of Clinton, safe-haven assets declined. The yen weakened more than 1% to 104.578 per dollar after jumping 1.6% last week. The Swiss franc also slipped 1%, after surging 2% the week before. After gaining as much as 2.3% in the week to November 04th amid concern Republican Donald Trump may capture the White House, gold fell around 1.5% to $1,287.80 an ounce on Monday.

Crude prices rallied as Algeria's Energy Minister Nouredine Bouterfa stated on Sunday he was confident OPEC members would stick to a deal made in Algiers in September to cut output, according to state news agency APS. Bouterfa also added that the group's technical committee was working on applying the deal.
The High Level Committee of experts is scheduled to meet again in Vienna on Nov. 25 ahead of the next meeting of OPEC ministers on Nov. 30.

Technicals
EURUSD

Fig: EURUSD H4 Technical Chart
EURUSD is about to break the 50.0%Fibonacci level at 1.10578 after creating a wide gap down on the market open. The pair failed to cover the gap and has been heading downwards since the price action pulled back from two MAs. The short-term MA20 has converged with the long-term MA50 from above, suggesting further down moves.
Trade suggestion
Sell Stop at 1.10500, Take profit at 1.10000, Stop loss at 1.10700

USDCHF

Fig: USDCHF H4 Technical Chart
USDCHF left a gap up on the market open on Monday which sent the price action to cross over the short-term MA20 and turned this resistance into a dynamic support. The 20-period MA has sustained the pair’s bullish momentum after a short slide following the gap. RSI has surpassed the 50 line, indicating that the pair may soar higher.
Trade suggestion
Buy Stop at 0.97800, Take profit at 0.98600, Stop loss at 0.97500

CADJPY

Fig: CADJPY H4 Technical Chart
CADJPY has been struggling under the 38.2% retracement after jumping more than 1% on the opening. The sharp rally has brought the price action to penetrated both long-term and short-term MAs, signaling a reversal into an uptrend. As can be observed from the Stochastic chart, %D line and %K line has been surging. A breakout thought the 38.2% level is expected.
Trade suggestion
Buy Stop at 78.100, Take profit at 78.500, Stop loss at 77.900

GOLD

Fig: GOLD H4 Technical Chart
Gold dropped back to an intra-day low after surging to as high as 1295.72 in an attempt to cover the wide gap down created on the market open. Gold fell back below the 23.6% retracement and may slide deeper to test the support at 1279.00. While RSI is ticking lower, ADX has been soaring, confirming the downtrend.
Trade suggestion
Sell Stop at 1287.00, Take profit at 1279.00, Stop loss at 1295.00

WTI

Fig: WTI H4 Technical Chart
WTI has been trading sideways under the long-term MA50 at 44.80. The commodity has been on a rise after bottoming out at 43.56. RSI index that has surged above 50 line and continues to pointing upwards suggesting a crossover of the price action through the 50-period MA.
Trade suggestion
Buy Stop at 45.00, Take profit at 45.70, Stop loss at 44.60

CAC40

Fig: CAC40 H4 Technical Chart
CAC40 has witnessed a big jump that sent the price above 23.6% level. The index escaped from a six-day losing streak and is on course to pare its losses. The %K line has crossed over the %D line from below and liberated from the oversold zone. With a wide gap between two lines of Stochastic chart, the index is expected to extend its rally.
Trade suggestion
Buy Stop at 4445.00, Take profit at 4473.00, Stop loss at 4420.00

HSBC’s Profit Tops Estimates, One-time Items Weigh on Bottom Line

HSBC Holdings Plc on Monday reported third-quarter underlying profit that beat analysts’ estimates but overall profit was weighed by the impact from the sale of its Brazilian business.

The Europe’s largest bank said its adjusted pretax profit, which excludes one-time charges, rose 7 percent from a year earlier to $5.59 billion, thanks to attempts of Chief Executive Officer Stuart Gulliver to pare costs and bolster the lender’s capital cushion. In three months to September, the bank’s adjusted revenue added 2.4% to $12.79 billion with adjusted operating costs dropping 3.5% to $7.25 billion.

However, HSBC’s overall profit swung to a loss of $204 million from a year-earlier profit of $5.23 billion, due in part to a $1.74 billion loss from the disposal of its operations in Brazil which was sold to Banco Bradesco S.A. in July.

HSBC shares have rallied more than 11% since August, when it announced a plan to spend up to $2.5 billion in the second half to repurchase shares. The U.K. banking giant said it had completed 59% of its share-repurchase plan, which is expected to conclude in late 2016 or early 2017.

HSBC Trade suggestion
Buy Stop at 595.00, Take profit at 605.00, Stop loss at 590.00

Clinton Remains Strong Favourite, FTSE 100 Reverses Higher

U.K. stocks jumped on Monday, as investor confidence was fueled by news that the FBI would not bring fresh charges against Hillary Clinton over a batch of newly discovered emails. The news dispelled a cloud over the Democrat candidate’s presidential campaign two days before the U.S. election and triggered dollar buying, which indirectly dampened British Pound price.

The FTSE 100 index lost more than 4.5% last week with every single trading day closing lower partly due to concerns over tightening race between Republican presidential nominee Donald Trump and his Democrat rival Hillary Clinton. Investors’ worries have mounted since the FBI announced on October 28 that it had found new evidence in its investigation of Clinton’s emails.

On the FTSE 100, mining and banking shares were heading the risers as investors piled back into riskier assets. Rising industrial metal prices pushed mining shares up, with Glencore Plc adding 4.12%, BHP Billiton gaining 3.99%. Antofagasta and Rio Tinto plc rose 3.86% and 3.04%, respectively.

However, as haven assets such as gold and silver slipped back, shares of Randgold Resources were down 0.15% and Fresnillo fell 1.54%.

HSBC Holdings plc topped the market and banking stocks following its latest update on third-quarter earnings. HSBC rallied 4.96% after the lender reported underlying profit that beat analysts’ estimates. On the contrary, Tesco dropped 0.77% after its banking service was reported to hit by fraudulent activity.

FTSE 100 created a wide gap up on the market open. The index witnessed a big jump that brought the prices above the 23.6% level at 6742.67. As can be seen from the stochastic chart, the %K line has crossed over the %D line from below, suggesting a reversal into an uptrend. The index is expected to find its resistance at 6920.00.

Trade suggestion
Buy Stop at 6790.00, take profit at 6920.00, stop loss at 6760.00

EUR/AUD signal by Capital Street FX

From GMT 17:00 07/11/2016
Till GMT 21:00 07/11/2016

Sell at 1.43350
Take profit at 1.43000
Stop loss at 1.43550

Daily Report on November 08, 2016

Asian shares advanced while European stocks pared losses after opening lower, amidst opinion polls showing Hillary Clinton ahead of Donald Trump. However, financial investors and traders’ caution was evident as the U.S dollar has weakened while gold rose. The dollar index, which measures the strength of the currency against a basket of its peers, has slid 0.14% to 97.60.

According to data from the Customs General Administration of China on Tuesday, China's exports and imports fell more than expected in October. In the last month, the country’s exports and import fell 7.3 percent and 1.4 percent from a year earlier, respectively. While imports extended losses for the second month in a row, exports fell for a seventh month in October, leaving the country with a trade surplus of $49.06 billion, versus forecasts of $51.70 billion.
Weak domestic and global demand has raised fears that a broader recovery in Chine which has been seen in recent months could falter, as analysts have warned that a property boom may be peaking. A red hot housing market, which has generated a significant share of the growth by boosting demand for building materials, has been under control by Chinese government.

Oil prices were higher on Tuesday after the OPEC Secretary- General Mohammed Barkindo stated that Russia is “on board” with an Organization of Petroleum Exporting Countries agreement to snap production to help re-balance the crude market. China imported 6.78 million barrels of oil from abroad in October, down 12.9 percent from the previous month. This is one of the lowest volumes this year on a daily basis.

Technicals
AUDJPY

Fig: AUDJPY H4 technical Chart
AUDJPY has been struggling around the major level at 80.600 since yesterday. The pair reached this level last Monday but failed to make a breakout. The Aussie had to retreat after peeking out of this handle yesterday as the market has entered the overbought zone. After a brief correction, AUDJPY is expected to breach the 80.600 resistance as the pair is being supported by two MAs placed below the price action.
Trade suggestion
Buy Stop at 80.700, Take profit at 81.500, Stop loss at 80.200

EURCAD

Fig: EURCAD H4 technical Chart
EURCAD has been trapped between two MAs since the start of this week following a wide gap down on the market open on Monday. The pair has pulled back consistently after hitting the resistance that is the short-term MA20 and the support which is the long-term MA50. As the pair is lingering around the lower boundary and RSI is indicating a market in favor of sellers, the pair may fall further.
Trade suggestion
Sell Stop at 1.47500, Take profit at 1.46800, Stop loss at 1.47900

AUDNZD

Fig: AUDNZD H4 technical Chart
AUDNZD resumed the downside following a correction on Monday. The pair crawled back from the resistance at 1.05380 and is heading to the support at 23.6% retracement. Before reaching the 23.6% level, the pair need to break below the short-term 20-period MA. As can be observed from earlier cycle, 23.6% level is not a strong support. Therefore, the pair may fall to as low as 1.04500 once it breaks out of the dynamic support.
Trade suggestion
Sell Stop at 1.04900, Take profit at 1.04500, Stop loss at 1.05150

WTI

Fig: WTI H4 technical Chart
WTI crude price has been on a steady rise which helped the price action cross over the short-term MA20. The prices trimmed its slide on last Friday after having fallen for more than 2 weeks. The RSI index has been soaring to as high as 47.00. However, to confirm an uptrend, we may need to be patient until the RSI surpasses 50.
Trade suggestion
Buy Stop at 45.25, Take profit at 46.00, Stop loss at 44.70

Natural Gas

Fig: Natural gas H4 technical Chart
Natural Gas has dropped back below the 38.2% Fibonacci level at 2.804 after moving indecisively around this level for nearly a week. The commodity has broken below the short-term MA20 as well and is heading downwards to the support at 2.670. RSI is pointing to the oversold zone, confirming the downtrend.
Trade suggestion
Sell Stop at 2.750, Take profit at 2.670, Stop loss at 2.820

EURO STOXX 50

Fig: EURO STOXX 50 H4 Technical Chart
Euro Stoxx 50 extended its gains on Tuesday despite a small gap down on the market open. The index has been supported by the 38.2% Fibonacci level and the short-term MA20. As can be observed from the indicator chart, RSI is heading upwards, suggesting further advances. The index is expected to test the resistance at 3040.00.
Trade suggestion
Buy Stop at 3015.00, Take profit at 3040.00, Stop loss at 2995.00

AUD/USD signals by Capital Street FX

From GMT 07:00 08/11/2016
Till GMT 21:00 08/11/2016

Sell at 0.76900
Take profit at 0.76500
Stop loss at 0.77060