Daily Technical Analysis by Capital Street FX

Daily Report on November 15, 2016

The U.S. dollar lost its luster against the Euro and the Japanese Yen on Tuesday, as investors took profit after a rally following Donald Trump’s victory last week and his pledges to boost fiscal spending. The dollar index which measures the strength of the greenback versus a basket of currencies, pulled back from one-year high and looked set for the first loss since last Wednesday

Oil prices were pushed higher today by profit-booking and speculations that U.S. shale output will drop in December. Crude prices added 2% to move away from three-month lows logged the day before as market analysts forecast shale oil production in the U.S. would fall to its lowest since April 2014 at 4.5 million barrels per day (bpd) next month.

In the Eurozone, German economic growth was reported to slow more than expected in the third quarter of 2016. According to the Germany's Federal Statistics Office, the economy grew by 0.2% on the quarter between July and September, missing consensus forecast for 0.3% growth, as net exports fell following the Brexit vote. The Statistics Office said private consumption has overtaken foreign trade as the most important growth driven in Germany.

Meanwhile in France, Insee (French national statistics bureau) reported that the country's Consumer Price Index was unchanged on the month in October due to falling services and food prices. Insee also added that the harmonized measure of annual price change known as HICP--rose 0.5% on year in October, the same as in September.

Technicals
GBPUSD

Fig: GBPUSD H4 Technical Chart
The British Pound extended losses from over one-month highs at 1.26445. As can be seen from the chart, the price action has crossed over both short-term and long-term MAs, suggesting a reversal into downtrend. Coupled with soaring ADX, RSI index has dropped below the 50 line, indicating further declines.
Trade suggestion
Sell Stop at 1.24000, Take profit at 1.23500, Stop loss at 1.24400

EURUSD

Fig: EURUSD H4 Technical Chart
EURUSD resumed its down moves after the pair crawled back from the lowest since early January at around 1.07150 recorded yesterday. The bullish sentiment which may result from profit-booking succeeded in preventing the market from falling into an oversold zone but failed to push the prices higher. The pair has still been under downward pressure from the two MAs and may retest the support at 1.07150 again.
Trade suggestion
Sell Stop at 1.07700, Take profit at 1.07150, Stop loss at 1.07800

USDCAD

Fig: USDCAD H4 Technical Chart
USDCAD rebounded from 9-months high at 1.35882 recorded yesterday – which is also the 50% Fibonacci level. However, the short-term MA20 continued to support the price and may send it back to around the 50% retracement. RSI remaining in the bullish zone suggests a market in favor of buyers.
Trade suggestion
Buy Stop at 1.35400, Take profit at 1.35880, Stop loss at 1.35100

SILVER

Fig: SILVER H4 Technical Chart
SILVER has reversed lower at the handle of 17.075 – the level that has supported the metal yesterday. Silver corrects fell as low as 16.625 on Monday and sent its market into the oversold zone. Investors jumped in to buys the dips but sellers continued to damp the price lower. After a correction, the metal is anticipated to drop lower to test the 61.8% level.
Trade suggestion
Sell Stop at 16.900, Take profit at 16.550, Stop loss at 17.100

BRENT

Fig: BRENT H4 Technical Chart
Brent has been on a strong rise that brought the commodity to as high as 46.00 resistance. The price has broken above the short-term MA20 but is struggling around the long-term MA50 and the 46.00 level. RSI has surpassed the 50 level, consolidating the up moves.
Trade suggestion
Buy Stop at 46.10, Take profit at 46.80, Stop loss at 45.80

NASDAQ 100

Fig: NASDAQ 100 H4 Technical Chart
NASDAQ 100 has been sliding after the index failed to break a couple of MAs which are hanging above the price action. As can be observed from the RSI chart, bears had jumped in to prevent the market from penetrating the bullish area. With long upper shadows in recent candles that indicate overwhelming sellers in the market, NASDAQ may reattempt the support at 23.6% level.
Trade suggestion
Sell Stop at 4699.00, Take profit at 4675.00, Stop loss at 4712.00

AUD/CAD signal by Capital Street FX

From GMT 08:00 15/11/2016
Till GMT 21:00 15/11/2016

Sell at 1.02000
Take profit at 1.01400
Stop loss at 1.02300

Spurred by Growing Property Market, Home Depot Raises Earnings Forecasts

Shares of Home Depot Inc. rose 1.6% to $129.65 in premarket trading after the Atlanta-based company reported rising sales in the third quarter on Tuesday.
Home Depot posted a profit of $2 billion, or $1.60 a share, up from $1.73 billion, or $1.35, one year ago. In three months through September, sales at stores open at least a year advanced 5.5%, contributing to a continual increase in revenue which was reported to add 6.1% to $23.15 billion.

All results beat expectations thanks to a growing housing market in the U.S. and the fact that Americans become increasingly willing to spend on home-improvement projects.

For the full year 2016, the company forecasts earnings per share of $6.33, up 2 cents compared to its previous guidance. Sales are expected to increase 6.3%.

Trade suggestion

Buy Stop at 129.00, Take profit at 131.00, Stop loss at 128.00

Euro Gives Up Earlier Gains, Resuming the Downtrend versus the Dollar

Euro has pared its earlier gains versus the dollar on Tuesday as positive data from the U.S. sustained the greenback’s rally which was powered by the spending plan of President-elect Donald Trump.

The pair EURUSD was trading near its lowest level since early January at 1.07150 after a batch of economic reports supported the case for the Federal Reserve to raise its rates next month.

As stated by the Census Bureau, sales at U.S. retailers soared in October after a revised 1% advance in the previous month. The rally marked the best two-month stretch since early 2014, indicating that low interest rates and improvements in the labor market are encouraging Americans to borrow and spend. Retail sales jumped 0.8% last month, topping economists’ forecast by 0.1%. The result was boosted by strong sales from auto dealers, whose sales hit an 11-month high.

Another report which is about New York-area manufacturing conditions swung to positive reading in November for the first time in the last four months. The Empire Fed index rose 8.3 points to 1.5 with new-orders index adding 8.7 points to 3.1 and shipments index rising 9.1 points to 8.5.

Adding to supports for the dollar rally, Boston Fed President Eric Rosengren on Tuesday said that speculations of an interest-rate hike this December are “plausible” given rising inflation and a job market near full employment.

A number of Federal Reserve officials will speak this week, and Chairwoman Janet Yellen’s testimony on Capitol Hill on Thursday will be closely watched.

EURUSD is struggling around the support at 1.07150 after falling off from the 61.8% Fibonacci retracement and another major support at 1.08000. As can be seen from indicator windows, the market has penetrated the oversold zone, which led to earlier correction today. In the event of continual down moves, the pair may reverse higher at 1.06300.

Trade suggestion
Sell Stop at 1.07100, Take profit at 1.06300, Stop loss at 1.07500

Daily Report on November 16, 2016

Asian shares advanced for the first time in the last four trading days, led by energy stocks. The MSCI Asia Pacific added 0.8% with energy sectors jumping 1.4%. Shares of energy companies surged high as crude oil has experienced the best daily gain in seven months, which was driven by OPEC efforts to agree output cuts.

Meanwhile, Japan’s Topix index rallied toa nine-month high thanks to gains in banking shares which have been powered by earnings reports and the recent surge in bond yields.

The dollar fell versus the euro and the yen in Asian morning session after extending its rally yesterday. However, investors are still betting on a high chance that the Federal Reserve will hike rates by the year’s end. Fed Governor Daniel Tarullo on Tuesday said that an interest-rate rise next month was more likely than before. Fed funds futures imply a 94 percent probability of an increase.

Other Fed Presidents including James Bullard, Neel Kashkari and Patrick Harker are scheduled to speak on Wednesday and may shed more light on the likely trajectory of borrowing costs.

Oil futures pared some of their gains nearly 6 percent from the session before, sliding on Wednesday after an industry report showed an unexpected build in U.S. crude stocks last week. According to the weekly report by the American Petroleum Institute, crude inventories climbed by 3.6 million barrels to 488.8 million barrels in the week to November 11. Analyst had expected for an increase of 1.5 million barrels. Official figures on stockpiles from the U.S. Energy Information Administration are due later today.

Technicals
USDJPY

Fig: USDJPY H4 Technical Chart
USDJPY has been moving sideways under a major resistance at 109.200 after breaking above the 38.2% level at 108.320. As can be observed from the Stochastic chart, the market has penetrated the overbought zone, however, the ADX index is soaring, which implies that the pair may surge higher.
Trade suggestion
Buy Stop at 109.200, Take profit at 110.200, Stop loss at 108.700

AUDUSD

Fig: AUDUSD H4 Technical Chart
AUDUSD has been moving in a thin range under the resistance at 0.75600. The pair had to give up its strength as the price action failed to cross over short-term MA20. A sliding ADX indicates unclear trend on the market but a RSI index remaining in the bearish zone suggests that the Aussie may fall further.
Trade suggestion
Sell Stop at 0.75400, Take profit at 0.75100, Stop loss at 0.75600

Sugar

Fig: Sugar H4 Technical Chart
Sugar has broken below a shrinking trading range yesterday and even breached the support at 21.10 – the lowest level in two weeks. The commodity pulled back as it hit the 23.6% retracement and closed the trading session at the 21.10 level. As investors have already jumped in and bought the dips, sugar may fall lower as the market has still been in a favor of sellers, as indicated by RSI chart.
Trade suggestion
Sell Stop at 21.05, Take profit at 20.80, Stop loss at 21.25

S&P500

Fig: S&P500 H4 Technical Chart
S&P 500 index extended gains in yesterday session from the support at 2155.00. The U.S. benchmark has been powered by the short-term MA20 and may soar higher to attempt the record high at 2193.03 recorded three months ago. The last two candles with no shadows indicate a strong rally. RSI index which is pointing upwards also consolidates further up moves.
Trade suggestion
Buy Stop at 2180.00, Take profit at 2193.00, Stop loss at 2174.00

GBPUSD Slides Further As UK Jobless Claims Keep Soaring

GBPUSD looked set to decline for the third straight trading days after Claimant Count Change on Wednesday implied worsening labor conditions in the U.K.
According to the Office for National Statistics, the number of people claiming unemployment-related benefits during October rose by 9,800, topping market forecasts which called for an increase of 2,000. The data for September has also been revised to a rise of 5,600 from 700.

However, the U.K.’s unemployment rate fell to its lowest level in over a decade last quarter. In the three months to September, the unemployment rate stood at 4.8%, down from 4.9% in the preceding three-month period.

Trade suggestion
Sell Stop at 1.24300, Take profit at 1.23800, Stop loss at 1.24550


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

U.S. Crude Supplies On A Rise, Will Doha Leave OPEC Empty-Handed Again?

Oil futures turned lower on Wednesday after experiencing a significant rally the day before. Official data showing increasing crude supplies in the U.S. continued to weigh on oil prices, despite the fact that some OPEC and non-OPEC members have raised their voice to support an agreement to curb production which is expected to be finalized at the end of this month.

Reuters reported that Russia’s Energy Minister Alexander Novak on Wednesday stated that his country is ready to join OPEC’s deal an agreement to curb production. Novak also added that he saw big chances that the oil producers’ group can agree on the terms of the freeze by November 30th. The Russian Energy Minister is expected to have a bilateral meeting with his Saudi counterpart, Khalid al-Falih, at a gas conference in Doha this week.

According to an Algerian energy source, a number of energy ministers from OPEC countries are likely to meet informally in Doha to try to build consensus over specific quotas for each member after having reached a preliminary decision on snapping oil production in September in Algiers.

In the U.S., the Energy Information Administration reported that domestic crude supplies rose by 5.3 million barrels in the week ended November 11th. The result exceeded analysts’ expectations which called for 1.5 million-barrel build last week.

Trade suggestion

Sell Stop at 46.80, Take profit at 46.20, Stop loss at 47.20

GBP/AUD signal by Capital Street FX

From GMT 15:00 16/11/2016
Till GMT 21:00 16/11/2016

Buy at 1.66500
Take profit at 1.67500
Stop loss at 1.66000

Daily Report on November 17, 2016

Asian shares firmed while European stocks declined with Treasury yields on Thursday. The U.S. dollar also weakened as investors were cautiously waiting for report on American inflation data and the testimony of Federal Reserve Chairwoman Janet Yellen later on the day.

The dollar index, which measures the greenback's strength against a basket of major currencies, retreated by 0.15% to 100.15 after reaching its highest since April 2003 at 100.570 overnight. Fed President Yellen will be addressing Congress for the first time since Republican Donald Trump won the presidential election on November 08th.

His plans for fiscal stimulus including cutting rates and ramping up government spending are expected to spur inflation in the U.S. and thus quicken the pace of Fed interest-rate hikes. Speculation over a December rate increase has been rising, which triggered a global bonds rout and powered the dollar since the start of last week.

As a result of global bonds selloffs that caused Japanese government bonds yields to surge higher, the Bank of Japan on Thursday fired a warning shot against excessive yield moves by offering to buy an unlimited amount of JGB at fixed rates for the first time since the introduction of a new policy framework. The move reiterated Japanese central bank’s pledge to keep the benchmark yield pinned around zero percent.

Elsewhere, Australia's unemployment rate was reported to have been unchanged at 5.6% in October. As stated by the Australian Bureau of Statistics, the number of people employed rose by 9,800, driven by an increase in fulltime jobs. However, economists had expected overall employment to soar by 18,000 positions.

Technicals
EURGBP

Fig: EURGBP H4 Technical Chart
EURGBP has been trading in a thin range in the last two days as the pair failed to breach the support at 0.85800. Nonetheless, the Euro is likely to lose ground versus its British counterpart as the short-term MA20 is containing the price. In the event of continual down moves, the pair may find its support at 0.84800.
Trade suggestion
Sell Stop at 0.85800, Take profit at 0.84800, Stop loss at 0.86300

AUDCAD

Fig: AUDCAD H4 Technical Chart
AUDCAD has extended its downtrend for the third consecutive trading day. Sellers have been overwhelmingly dominant in the market that forced the pair to remain in the oversold zone. Although ADX is surging, the +DI line has been pointing downwards, suggesting an underlying correction. The support at 38.2% retracement is expected to be the point the prompts the price to reverse higher.
Trade suggestion
Buy Limit at 0.99860, Take profit at 1.00400, Stop loss at 0.99600


Fig: USDCHF H4 Technical Chart
USDCHF retreated from over 8-month highs near 1.00600. The pair is approaching the milestone at 1.00000 and the Fibonacci retracement at 61.8% level. As can be seen from the Stochastic chart, USDCHF has almost reached the oversold zone. Hence, a pullback is expected.
Trade suggestion
Buy Limit at 1.00000, Take profit at 1.00600, Stop loss at 0.99800

COFFEE

Fig: Coffee H4 Technical Chart
After a correction at the start of this week, coffee price resumed its slide but is trading sideways to lower above the support at 160.60. As can be observed from the ADX chart, there are no clear trend in the market yet, as the ADX has fallen below 20. However, sellers are overwhelming and may send the price lower after this consolidation.
Trade suggestion
Sell Stop at 160.60, Take profit at 157.50, Stop loss at 162.60

BRENT

Fig: BRENT H4 Technical Chart
Brent crude resumed its uptrend after retreating from two-week highs at 47.54 logged yesterday. The level at 47.54 is also near the 23.6% Fibonacci retracement. With the short-term MA20 that has penetrated the long-term MA50 from below, the commodity price is expected to extend its uptrend, at least to re-attempt the 23.6% resistance.
Trade suggestion
Buy Stop at 46.75, Take profit at 47.50, Stop loss at 46.20

DAX 30

Fig: DAX 30 H4 Technical Chart
Germany DAX 30 index has been on a decline which sent its price action to below the short-term MA20 for the first time since November 08. The crossover suggests a reversal into a downtrend, which has been confirmed by the RSI index that has just moved past the 50 line. The support at 50.0% retracement is within the sight.
Trade suggestion
Sell Stop at 10620.00, Take profit at 10580.00, Stop loss at 10640.00

Cisco’s Executives Optimistic Inspite of Weak Outlook, Time To Buy The Dips?

Shares of Cisco Systems Inc. plummeted more than 4% in Wednesday’s extended session after the network equipment company reported weak results for the last quarter and also issued a gloomy second-quarter earnings forecast.

The San Jose, Calif.-based networking giant said that is fiscal first-quarter earnings dropped to $2.3 billion, or 46 cents a share, from $2.4 billion, or 48 cents a share, a year earlier. During the three-month period through October, Cisco generated $12.4 billion in revenue, which is lower than forecasts of $12.33 billion.
For the second quarter, Cisco projects revenue to decline 2% to 4% compared to the same period last year with adjusted earnings per share of 55 cents to 57 cents. Meanwhile, analysts expect quarterly earnings of 59 cents a share on revenue of $12.14 billion.

However, the company’s Chief Executive Chuck Robbins and his peers were optimistic about the possibility of a repatriation holiday some of President-elect Donald Trump’s proposed policies, especially the tax cut plan.


Trade suggestion
Buy Limit at 30.20, Take profit at 31.50, Stop loss at 29.50

U.K. Shares Tick Up, But Struggling Around Technical Level

U.K. stocks edged higher on Thursday, with retail stocks soaring after government data showed U.K. retail sales easily beat expectations. Mining shares also contributed to the bullish sentiment, spurred by higher metals prices as the U.S. dollar retreated ahead of Federal Reserve Chairwoman Janet Yellen’s testimony before the Congress later today.

The Office for National Statistics on Thursday reported that the country’s retail sales grew by 7.4% last month compared with the same period one year ago. On a monthly basis, sales rose by 1.9%, significantly topping economists’ expectations calling for 0.4% month-over-month increase.

U.K. retail sales grew at the fastest annual pace in nearly 15 years in October, driven by cooler temperature last month and stronger-than-usual Halloween sales at supermarkets. British shoppers were not only willing to buy more winter clothing but also snapped up Halloween costumes and treats.

Shares of apparel and home furnishing retailer Next PLC added 1.38%, while those of Marks & Spencer picked up 0.51%. Supermarket chain J Sainsbury PLC gained 0.42%. Mining shares were also trading higher. Anglo American PLC rose 1.46% and BHP Billiton PLC ticked 0.84% higher.

Shares of CRH PLC turned higher on Thursday, advancing 1.81% after the Dublin-based building materials supplier reported positive sales result and confirmed its full-year guidance.

On the down side, Royal Mail PLC led decliners, plummeting nearly 6.0%. Dragged down by shrinking marketing activity after the Brexit vote in June, the postal service posted a decline in its half-year net profit.

FTSE 100 index has been supported by the 23.6% Fibonacci retracement at 6742.80 since the start of this week. However, the U.K. stocks benchmark has also been under downward pressure from two MAs hanging above the price action. As can be seen from the chart, recent candles showed long lower shadows, which indicate firm support. The price is expected to edge higher, as indicated by the Stochastic chart, where the %K line has crossed over the %D line from below.

Trade suggestion

Buy Stop at 6780.00, Take profit at 6820.00, Stop loss at 6740.00

USD/ZAR signal by Capital Street FX

From GMT 19:45 17/11/2016
Till GMT 21:00 17/11/2016

Buy at 14.32500
Take profit at 14.50000
Stop loss at 14.23000

https://capitalstreetfx.com/en/wp-co...ner_report.jpg

Daily Report on November 18, 2016

Most Asian stock markets turned higher on Friday, tracing gains of the U.S. shares overnight. At the close in NYSE, and the NASDAQ Composite index soared 0.62% and the Dow Jones Industrial Average edged 0.1% higher. The benchmark S&P 500 index added 0.39%, heading closer to its record high on Thursday. While consumer discretionary sectors got a boost from positively economic data and earnings, bank stocks were fueled by prospect of higher interest rates.

The U.S. dollar surged to a 13-1/2-year high after U.S. Federal Reserve Chair Janet Yellen, who testified on the economic outlook before the congressional Joint Economic Committee on Thursday, bolstered the case for raising interest rates next month. Yellen indicated little had changed following the victory of Donald Trump U.S. presidential election earlier this month, and added that she would serve out her full term, which ends in 2018.

Oil prices ticked lower on Friday, but looking set to finish the week higher. The strength in the greenback is contemporarily overshadowing expectations of an OPEC agreement to curb crude production. However, focus will be on the informal meeting of the cartel in Doha this weekend where at least 11 OPEC members will gather in an attempt to finalize the deal reached this September to cut or freeze oil output.

Elsewhere, Mexico's central bank on has raised its key rate 50 basis points (bps) to 5.25 percent, the highest level since May 2009. The Banco de Mexico warned that the outcome of the U.S. election had cast doubt on the relationship between two countries. In his presidential campaign, Trump did threaten to unwind a free trade deal with Mexico and block the money sent home by migrants to pay for a border wall. The victory of Trump on November 8th had sent the Peso to its record low level, which marked the biggest two-day loss of the currency since the historic devaluation in 1995.

Technicals
GBPCHF

Fig: GBPCHF H4 Technical Chart
GBPCHF has broken out of the trading range from 1.24000 to 1.25140. The pair has been powered by the short-term MA20 and is likely to test the 23.6% level at 1.26160. While RSI chart indicates an overwhelmingly bullish force, ADX also shows a wide gap between +DI and –DI lines.
Trade suggestion
Buy Stop at 1.25400, Take profit at 1.26100, Stop loss at 1.25000.

AUDNZD

Fig: AUDNZD H4 Technical Chart
AUDNZD extended its slide to the third consecutive day. The pair is approaching the 23.6% level at 1.04790. The pair has been under downward pressure from two MAs which may help the price to breach the 23.6% handle as this is not a firm handle. The price may find its support at around 1.04500.
Trade suggestion
Sell Stop at 1.05000, Take profit at 1.04500, Stop loss at 1.05250

BRENT

Fig: BRENT H4 Technical Chart
Brent crude retreated from the 23.6% Fibonacci retracement and has broken below the support at 46.00. The commodity price action has also crossed over both short-term and long-term MAs, suggesting a reversal into a downtrend. RSI that moved past the average line supports the case for Brent crude to fall deeper.
Trade suggestion
Sell Stop at 45.80, Take profit at 45.00, Stop loss at 46.25

NASDAQ 100

Fig: NASDAQ 100 Index H4 Technical Chart
The U.S. benchmark NASDAQ 100 is on track to complete the double bottom pattern after the index rebounded from the low at 4675.80 (which is also the 23.6% retracement). The price has surpassed the neck level at 4778.36 to reattempt the resistance at 4880.00. The RSI index is pointing upwards, supporting further advances.
Trade suggestion
Buy Stop at 4835.00, Take profit at 4880.00, Stop loss at 4800.00
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Gold Approaches 1200.00 Threshold, Will The Metal Bottom Out?

Gold prices plunged to the lowest level since late May on Friday, set for a second-straight week of decline as the U.S. dollar soared strongly after comments from the Federal Reserve President Janet Yellen bolstered expectations that the central bank’s key rates would rise next month.

The precious metal hit $1202.80 per ounce earlier in the session, dragged down by the rally of the greenback, which is experiencing the biggest weekly gain in a year after Fed Chair Yellen said a U.S. interest-rate hike could come “relatively soon.”

Yellen’s remarks which came on the heels of strong economic data on Thursday, which indicated U.S. jobs market is tightening and inflation is gaining traction. Although Yellen, who testified on the economic outlook before the congressional Joint Economic Committee yesterday, stated that little had changed following the victory of Donald Trump U.S. presidential election earlier this month, Trump’s pledges to administration cuts taxes and increases fiscal spending have bolstered markets’ confidence as well as the dollar.

Speculations over accelerating U.S. growth rate and inflation may prompt the Fed to make a move on its rate next month. As a result, gold has been on a decline as the prospect of higher interest rates is considered to be negative for the dollar-denominated asset, which bears no yield.

On Friday, the Dollar index, which measures the currency against a basket of six rivals, rose to 101.37, its highest level since April 2003. The index has risen over 4 percent in the last two weeks, its biggest fortnightly rise since March 2015.


As can be seen from the chart, gold has broken below the 50.0% retracement at 1211.11 and is heading downwards to test the lowest level since May 30th at the 1,200.00 milestone. As indicated by the RSI chart, the gold market has entered the oversold zone, signalling a potential correction. However, there is a wide gap between the +DI and -DI line. Therefore, the metal is expected to fall deeper. As it is the last session of the week, traders should be careful as buyers may take profit.

Trade suggestion

Sell Stop at 1208.00, Stop loss at 1200.00, take profit at 1212.00

AUD/USD signal by Capital Street FX

From GMT 06:30 18/11/2016
Till GMT 21:00 18/11/2016

Sell at 0.73800
Take profit at 0.73300
Stop loss at 0.74050

Brexit Preparations Are “On track”, GBPUSD Slides Further

GBPUSD headed for closing the week lower on Friday. The British Pound, which has been weighed by a strengthening U.S. dollar, retreated for every trading day this week. The pair fell deeper after Prime Minister Theresa May on Friday said that preparations for Britain’s exit from the European Union were on schedule.

Speaking during a joint media briefing in Berlin ahead of a bilateral meeting with German Chancellor Angela Merkel, the U.K. PM May stated that her government stood ready to trigger Article 50 by the end of March next year. The legal process had been expected to be delayed by a legal decision that she must gain parliamentary approval before triggering the two-year period of negotiation.

The greenback, which has strengthened since Federal Reserve Chairwoman Janet Yellen’s testimony on Thursday, was given a fresh boost by other Fed officials today. While New York Fed President William Dudley stated that the post-election market reaction is not concerning in terms of planned interest rate rises, St. Louis Federal Reserve President Bullard said he is leaning toward supporting an interest rate increase in December.

Trade suggestion
Sell Stop at 1.23200, Take profit at 1.22800, Stop loss at 1.23400



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

Daily Report on November 21, 2016

European shares were trading lower in the morning session after opening higher on Monday. Meanwhile, commodity prices rebounded as the dollar’s rally lost its stream. The dollar index, which measures the strength of the greenback versus a basket of major currencies, slid by 0.35% to 101.06 after soaring to the highest level since April 2003 last Friday. Dollar-dominated metals such as nickel, copper and zinc gained at least 2 percent.

Oil jumped around 1% on Monday thanks to optimism OPEC will reach a supply-cut deal later this month. OPEC was reported to move closer to its output cut agreement as Iran, which has been ramping up its crude production to regain lost market share following years of sanctions, may be given an exemption if it agrees to at least cap its output at the current level. Iranian Oil Minister Bijan Namdar Zanganeh met OPEC’s secretary-general Mohammed Barkindo in in Tehran on Saturday to discuss a proposal that offers Iran to reduce output by as much as 1.3 million barrels a day.

The euro gained more than 0.4% today after German chancellor Angela Merkel on Sunday said that she would seek re-election as chairwoman of her party and contest next year’s federal election

Elsewhere, China and New Zealand were reported to have agreed to start formal negotiations to upgrade their bilateral free trade agreement (FTA). The first round of the negotiation process would begin in the first half of 2017. China has become New Zealand's largest goods export partner with about NZ$12.2 billion ($8.54 billion) of goods and services exported to China in the year to June. An upgraded agreement could benefit both countries, especially the world's largest dairy exporter.

Technicals
USDCAD

Fig: USDCAD H4 Technical Chart
In general, USDCAD has been trading in a range from 1.34000 to 1.35700, which is also the 50% retracement. The pair has been on a slide since it reversed lower from the upper boundary and has crossed over a couple of MAs at around 1.34700, which suggests further declines. With RSI index falling below the 50 line, USDCAD is expected to retest the lower boundary.
Trade suggestion
Sell Stop at 1.34500, Take profit at 1.34000, Stop loss at 1.34750

EURUSD

Fig: EURUSD H4 Technical Chart
EURUSD has been trading sideways to higher since last Friday but a weak bullish momentum which has helped prevent the pair from falling deeper seems not strong enough to beat downward pressure from the short-term MA20. The pair is likely to reverse lower and approach the lowest level since late November 2015 at around 1.05.
Trade suggestion
Sell Stop at 1.06200, Take profit at 1.05700, Stop loss at 1.06500

Sugar

Fig: Sugar H4 Technical Chart
Sugar bottomed out near 20.00 level. The price fell off from a triangle pattern and broke below the 23.6% retracement at 20.80. As can be seen from the stochastic chart, the market has escaped from the oversold zone with the %K line and %D line heading upwards. As a result of a market correction, sugar may retest the resistance at 23.6% level.
Trade suggestion
Buy Stop at 20.45, Take profit at 20.80, Stop loss at 20.20

WTI

Fig: WTI H4 Technical Chart
WTI crude oil has breached the 23.6% again following a few failed attempts. Basically, the pair has been supported by two MAs moving below the price action. RSI index is edging higher, suggesting strengthening bullish force. The commodity price is anticipated to attempt the resistance at 47.30.
Trade suggestion
Buy Stop at 46.50, Take profit at 47.30, Stop loss at 46.00

DAX

Fig: DAX 30 H4 Technical Chart
Germany’s DAX 30 index is swinging back and forth around the 10700.00 level. The short-term MA20 has twisted with the price action, suggesting indecisive moves. However, a RSI that remains in the bullish zone indicates a market in favor of buyers which may send the price to the resistance at 10800.00.
Trade suggestion
Buy Stop at 10730.00, Take profit at 10800.00, Stop loss at 10650.00

Colder Weather Forecasts Give Natural Gas Prices A Boost

U.S. natural gas futures extended their rally this week after having closed higher for the first time in the last five weeks. The commodity price hit the highest level since the start of this month at $2.944/Btu on Monday amid weather forecasts that showed lower temperatures in the next few weeks.

According to business weather intelligence firms, the big shift in the weather pattern that brought the first snowflakes to the U.S. over the weekend will keep a chill in the air this week too. In the next several weeks, colder weather will lower temperatures and is highly expected to provide support to an already pessimistic natural gas market.

The International Energy Agency (IEA) released its annual World Energy Outlook last week, stating that regardless of uncertainty around renewable energy and the Paris Agreement, natural gas will replace coal to play an important role in the mix of global fuels through to 2040.


Natural Gas Trade suggestion
Buy Stop at 2.935, Take profit at 3.000, Stop loss at 2.900

GBP/JPY signal by Capital Street FX

From GMT 18:30 21/11/2016
Till GMT 21:00 22/11/2016

Buy at 138.500
Take profit at 140.500
Stop loss at 137.500

Buoyed By Weak Dollar and OPEC Optimism, Brent Hits Three-Week High

Brent crude took off more than 3.3% on Monday, soaring to the highest level in three weeks. The commodity price was boosted by a weakening U.S. dollar and rising speculations that the Organization of the Petroleum Exporting Countries might agree to a supply-cut deal later this month.

Speaking at a news conference in Lima after an Asia-Pacific Economic Cooperation summit on Sunday, Russian President Vladimir Putin said he sees a “high probability” that an agreement to curb oil production will be reached at the meeting in Vienna on November 30. Russia’s President added that “We will do everything that our partners from OPEC are expecting. To freeze crude production is not an issue for us”.

OPEC was reported to move closer to its output cut agreement as Iran, which has been ramping up its crude production to regain lost market share following years of Western sanctions, may be given an exemption if it agrees to at least cap its output at the current level. Other OPEC members including Iraq, Libya and Nigeria, whose exports have been restrained by violence, have also asked to be exempted from any output-cut deal.

Iranian Oil Minister Bijan Namdar Zanganeh, who met OPEC’s secretary-general Mohammed Barkindo in in Tehran on Saturday to discuss a proposal that offers Iran to reduce output by as much as 1.3 million barrels a day, claimed after the meeting that OPEC is “highly likely” to reach a final agreement to curb oil production in its Nov. 30 meeting.

Meanwhile, the U.S. dollar retreated from last week’s 13-1/2-year highs, bolstering oil price as the dollar-dominated commodity becomes more affordable for purchasers using other currencies.

After two failed attempts to break above the 23.6% Fibonacci level last week, Brent crude has finally breached this level and also crossed over the short-term MA20. The RSI index which has surpassed 50 line confirms the uptrend. The commodity price is heading upwards to the long-term MA50 at around 48.97.

Trade suggestion

Buy Stop at 48.20, Take profit at 49.00, Stop loss at 47.80