Daily Technical Analysis by Capital Street FX

Dow Jones Sets New Record, Attempting 20,000 Threshold

U.S. shares set a new round of intraday records on Tuesday with Dow Jones Industrial Average nearing the 20,000 milestone ahead of the Federal Reserve’s two-day meeting stating today.

The benchmark jumped more than 0.6 percent to 19,940, heading for a seventh-straight session of gains. The rally was led by shares of International Business Machines Corp., Nike Inc. and Apple Inc. which rose more or less than 2 percent each. Indeed, at the time of writing, International Business Machines Corp. added 2.37%, Nike Inc. gained 1.85% and Apple Inc. climbed 2.15%.

Investors are focusing on the Fed’s coming interest-rate decision which is widely expected to witness a change by a quarter percentage point. Markets will also closely scrutinize the Fed’s President Janet Yellen’s remarks for clues to the central bank’s plans for 2017.

Trade suggestion
Buy Stop at 19,950.00, Take profit at 20,000.00, Stop loss at 19,920.00

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

Daily Report on December 14, 2016

Global shares were cautious ahead of the U.S. presumed second rate hike in the last ten years later Wednesday. The MSCI Asia Pacific Index edged 0.1 percent higher with Australia’s S&P/ASX 200 Index rising 0.7 percent. Hong Kong’s Hang Seng Index was also a rise but Japan’s Topix and the Shanghai Composite Index dropped 0.1 percent and 0.5 percent, respectively. European equities opened lower while U.S. futures indexes declined.

The U.S. dollar swung between gains and losses before the Federal Reserve’s expected interest-rate increase announced in late U.S. session. The greenback may have a muted reaction to the Fed’s decision to make a change to its key rates but will vacillate in a much wider range following Chair Janet Yellen’s subsequent press conference.

Crude oil fell on Wednesday on the back of a report that showed an unexpected climb in U.S. crude supplies for the week ended Dec. 9. The American Petroleum Institute late Tuesday post an increase of 4.7 million barrels in U.S. stockpiles last week, contrasting to forecasts calling for a stockpile decline of 1.7 million barrels by economists. Government’s official data will be released later today.
The Bank of Japan "tankan" survey published on Wednesday found big Japanese manufacturers' sentiment improved for the first time in six quarters to hit a one-year high while service-sector confidence was unchanged from three months ago. Falls in the yen and a pick-up in overseas growth brought the index measuring big manufacturers' business sentiment to plus 10 from plus 6 three months ago, which is the highest level since December 2015.

Technicals
GBPCHF

Fig: GBPCHF H4 Technical Chart
GBPCHF has broken below a couple of moving averages following a retreat from the resistance at 1.28880. The pair is likely to extend its downtrend after falling into a correction at around 1.27850. RSI index which is below 50 and is pointing down signals a strengthening bearish force.
Trade suggestion
Sell Stop at 1.27800, take profit at 1.27000, stop loss at 1.28200

Natural Gas

Fig: Natural gas H4 Technical Chart
Natural gas has been on a decline since the start of this week. The steady downtrend has sent the price to the lowest level since December 02nd. While the RSI index that gauges that relative strength between buyers and sellers are sliding, signaling a strengthening bearish momentum. The short-term MA20 has crossed over the long-term MA50 from above, suggesting further declines.
Trade suggestion
Sell Stop at 3.445, take profit at 3.360, stop loss at 3.480

SILVER

Fig: SILVER H4 Technical Chart
Silver bounced back after failing to broken below the short-term MA20. The price action has also crossed over the long-term MA50, which confirms a reversal into an uptrend. The RSI index has moved past the central line, supporting further advances. The metal may attempt the resistance at 17.200.
Trade suggestion
Buy Stop at 17.055, take profit at 17.200, stop loss at 16.900

DAX 30

Fig: DAX 30 Index H4 Technical Chart
Germany’s DAX 30 index rebounded from the 11300.00 threshold after a sharp rise that brought the market into the overbought zone. Profit taking has just helped send the market escape from the overblown state. However, the short-term MA20 may continue to support the bullish force, signaling a rebound around 11150.00.
Trade suggestion
Buy Limit at 11150.00, take profit at 11300.00, stop loss at 11100.00

EUR/CHF signal by Capital Street FX

From GMT 06:50 14/12/2016
Till GMT 21:00 14/12/2016

Buy at 1.07650
Take profit at 1.07900
Stop loss at 1.07500

Crude Prices Keep Declining Despite A Draw in U.S. Inventories

Oil futures recovered from some of their earlier losses on Wednesday following weekly report from the U.S. government that showed a draw in domestic crude inventories.

The U.S. Energy Information Administration on Wednesday reported crude oil inventories of the country fell for a fourth week in a row, retreating by another 2.6 million barrels for the week ended Dec. 9. The EIA’s report has dispelled concerns over rising output from the U.S. on the back on soaring oil price as the API on Tuesday had posted nearly 5 million barrel build expectation.

However, price remained weak as data from the Organization of the Petroleum Exporting Countries and the EIA both showed record output of the group in November.

Trade suggestion
Sell Stop at 51.85, Take profit at 51.50, Stop loss at 52.00

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

Depressed By Higher U.S. Rates And Fed’s Steeper Path of Tightening, Gold Plummets

Gold prices tumbled to the lowest level in ten months on Thursday after the Federal Reserve officials on Wednesday raised interest rates for the first time since last December and forecast a more aggressively economic tightening program for 2017.

Gold dropped more than 2.3% to hit the level not seen since early February 2016 at $1134.70 per ounce troy in Asian trading hours, extending its steep slide since the U.S. central bank lifted its target for overnight borrowing costs by 0.25 percentage point to a range of 0.5 percent to 0.75 percent. According to a statement following a two-day meeting in Washington, the Federal Open Market Committee cited “realized and expected labor market conditions and inflation” as reason for this time’s rate hike.

The Fed is widely believed to shift from easing monetary policy toward a tightening territory, as its two main goals which are inflation and labor are moving towards its target. While inflation expectations have increased “considerably”, the labor market is tightening. The central bank stated that it expects three rate increases in 2017, up from two in its September forecasts.

The dollar index soared 0.27% to 102.62 – the highest in the last 13 years, putting pressure on dollar-nominated assets such as bullion as a stronger greenback tends to cause gold more expensive for buyers holding other currencies. In addition, higher interest rates also make noninterest paying assets like gold less attractive.

Gold extends its downtrend following a spike to one-and-a-half-month high at 1337.16. Since then, the precious metal has plunged steeply and has broken below four key Fibonacci levels. Strong bearish has kept the market in the oversold zone for more than 1 month. Although the ADX index has been soaring, the downtrend seems limited. A pull back in near term is expected.

Trade suggestion
Sell Stop at 1137.00, Take profit at 1125.00, Stop loss at 1145.00

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

NZD/USD signal by Capital Street FX

From GMT 07:00 15/12/2016
Till GMT 21:00 15/12/2016

Sell at 0.70900
Take profit at 0.70700
Stop loss at 0.71000

Daily Report on December 15, 2016

The U.S. dollar marched broadly higher versus all of its peers on Thursday after the Federal Reserve decided to make a change on its rates and boosted the outlook for the interest rate policy in coming years. The dollar index soared nearly 0.8% to 103.00, the highest level since early 2003 in early U.S. session.

The U.S. central bank hiked its target for overnight borrowing costs by 0.25 percentage point to a range of 0.5 percent to 0.75 percent on Wednesday, updating its forecast of median fed-funds rate to 1.4% by the end of 2017, 2.1% at the end of 2018 and 2.9% in 2019.

This means that there will be three quarter-percentage-point interest-rate increases over each of the next three years. This pace is faster than what was forecast in September, when there were only two rate increases next year projected.

Meanwhile, the Bank of England held its key interest rate unchanged on Thursday, warning about slower pickup in inflation next year due to recent appreciation in the British Pound. In its latest and final policy decision of 2016, the Monetary Policy Committee, led by Governor Mark Carney, voted unanimously to keep the benchmark rate at 0.25 percent as well as keep its two asset-purchase programs running intact.

Earlier on the day, the Swiss National Bank also kept interest rates unchanged at record low levels to keep a lid on the "significantly overvalued" Swiss franc. Given political uncertainties including upcoming elections in several countries in the euro area and the exit negotiations between the UK and the EU presumed to be triggered next March, the Swiss franc has strengthened against its major peers. A strong franc is considered to be negative for Switzerland's export-based economy, as it pushes up the price of Swiss products and slashes profit margins of companies.

Technicals
EURGBP

Fig: EURGBP H4 Technical Chart
EURGBP has been trading sideways to lower below the 38.2% Fibonacci level at 0.83950. The pair has also been under downwards pressure from the two moving averages that are hanging above the price action. These two MAs contributed to restraining the bullish force and damping the price lower. With RSI indicating overwhelming bearish momentum, EURGBP may attempt the support at 0.83000.
Trade suggestion
Sell Stop at 0.83500, Stop loss at 0.83750, Take profit at 0.83000

NZDUSD

Fig: NZDUSD H4 Technical Chart
NZDUSD has broken out of an upwards slopping trendline to fall as low as 0.70500 – the level not seen since the start of December. The price action has also crossed over two MAs, suggesting a reversal into a downtrend. Although the market has entered the oversold zone, as indicated by the RSI index, the ADX index is soaring, signaling further declines.
Trade suggestion
Sell Stop at 0.70400, Stop loss at 0.70600, Take profit at 0.70000

SILVER

Fig: SILVER H4 Technical Chart
Silver dropped steeply below the 61.8% Fibonacci level and even peeking out of the firm support at 16.000. The metal’s slide has sent the market into the oversold zone, as can be observed by two indicator windows. The pair bounced back after falling under 16.000 due to profit taking but the downtrend may bring the price to as low as 15.800.
Trade suggestion
Sell Stop at 16.000, Stop loss at 16.100, Take profit at 15.800

FTSE 100 Index

Fig: FTSE 100 Index H4 Technical Chart
FTSE 100 Index is struggling around the 6973.00 level after consistently failing to break above this level lately. In general, the price has been on an uptrend, which is indicated by higher lows formed in the price action. The short-term MA20 is another support for the bullish momentum. The index is anticipated to approach the 7000.00 milestone.
Trade suggestion
Buy Stop at 6975.00, Stop loss at 6960.00, Take profit at 7000.00

Euro Hits the Lowest Since Early 2003 In The Wake of FED’s Decision

In the aftermath of the event that the U.S. Federal Reserve (FED) announced its first interest-rate increase of 2016 on Wednesday, the greenback extended its strong rally versus all of its peers including the euro on Thursday.

The pair EURUSD hit fell more than 1.3% to an intraday nadir of $1.03984 – the lowest level for more than a decade as the Fed had signaled a more aggressive outlook for interest rate policy in coming years. After hiking its target for overnight borrowing costs by 0.25 percentage point to a range of 0.5 percent to 0.75 percent, the central bank stated that it expected the median fed-funds rate to be 1.4% by the end of 2017, soaring to 2.1% at the end of 2018 and 2.9% in 2019.

This means that there will be three quarter-percentage-point interest-rate increases over each of the next three years. This pace is faster than what was forecast in September, when there were only two rate increases next year projected.

Trade suggestion
Sell Stop at 1.04100, Take profit at 1.03700, Stop loss at 1.04300

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

Daily Report on December 16, 2016

The dollar halted its weekly climb on Friday, retreating nearly 0.1% to 103.00 versus a basket of six major currencies. Meanwhile, Asian shares pared some of their weekly drop with European stocks were little changed in early trading. Indeed, the MSCI Asia Pacific Index advanced 0.2 percent, curbing its decline in the week to 1.8 percent. This marked the worst weekly performance since September of the benchmark.

Japan’s Topix rose 0.5%, extending its rally to the sixth straight week. The steady advance has sent the index 1.7% higher, erasing its loss for 2016. Adding to the upbeat moves, China’s Shanghai Composite Index rose 0.2 percent, trimming its biggest weekly drop in eight months. Elsewhere, the Stoxx Europe 600 Index was little changed as of 8:24 a.m. in London, up 0.9 percent for the week.

According to the state-run Securities Daily, China’s central bank has pumped 600 billion yuan into the financial system over the past two days in an attempt to stabilizing the bond and stock markets. The move came as a result of an unprecedented plunge of the bond futures market that triggered a temporary trading halt yesterday.

On the government debt market, yields on Japanese bonds due in a decade advanced as much as 1 and 1/2 basis points to 0.10 percent. In the U.S., Yields on benchmark 10-year treasury notes inched two basis points lower at 2.58 percent, set for their steepest weekly advance in a month after touching their highest level since September 2014.

Technicals
EURGBP

Fig: EURGBP H4 Technical Chart
EURGBP has broken above the 38.2% Fibonacci level at 0.83950. The pair has also penetrated both the short-term MA20 and the long-term MA50, confirming the uptrend. As RSI index is indicating stronger buyers in the market, the currency pair may approach the resistance at 0.84700.
Trade suggestion
Buy Stop at 0.84300, Stop loss at 0.84100, take profit at 0.84700

EURAUD

Fig: EURAUD H4 Technical Chart
EURAUD had to give up its bullish strength after hitting the long-term moving average at 1.41400. The pair had rebounded from the 50.0% Fibonacci level and the appreciation sent the %K line into the overblown market. As the %K line has reversed lower and is about to cross over the %D line from above, the pair may fall further to the support at 1.41600.
Trade suggestion
Buy Stop at 1.42000, Stop loss at 1.42200, take profit at 1.41600

WTI

Fig: WTI H4 Technical Chart
U.S. crude price resumed its down moves following a correction that sent the price to as high as 51.45. Two moving averages hanging above the price action are putting downward pressure on the commodity price, showing signs of a continual downtrend.
Trade suggestion
Sell Stop at 50.50, Stop loss at 51.00, take profit at 49.60

SP500 Index

Fig: SP500 Index H4 Technical Chart
SP500 index is likely to retest the all-time record high level at 2277.35. The index is heading upwards after a correction from the 0.0% Fibonacci level. As can be observed from the RSI chart, the market is in a bullish zone, suggesting further upbeat moves.
Trade suggestion
Buy Stop at 2265.00, Stop loss at 2260.00, take profit at 2277.00

Adobe Systems Records 12 Consecutive Quarters Earnings Beat Estimates

Shares of Adobe Systems Incorporated swung between gains and losses late Thursday after the software giant reported better-than-expected fourth-quarter earnings results but forecast weak outlook for its fiscal year 2017.

The San Jose-based company posted $0.90 for the last quarter’s earnings per share, which topped the EPS of $0.86 that analysts had expected and marked the 12th consecutive quarter that its earnings beat estimates. Adobe’s revenues surged 23.1% from last year to $1.61 billion, also beating economists’ estimates of $1.59 billion.

However, the company only expects EPS of $3.75 for the full year 2017, which was well short of the $3.84 that analysts were expecting. Full-year 2017 revenues are anticipated to reach $6.95 billion, missing Wall Street’s $7.08 billion projection.

Trade suggestion
Buy Stop at 105.15, Take profit at 106.50, Stop loss at 104.50

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

Russian Producers To Comply Output-cut Deal, Supporting Crude Prices

Crude oil futures advanced on Friday, spurred by a weakening U.S. dollar and reports indicate that major oil producers will comply with recent agreements to reduce their oil production.

Brent crude soared 1.7% to nearly $55 per barrel after Russian Energy Minister Alexander Novak stated today that all Russian oil companies including state-controlled Rosneft had agreed to trim their crude oil output on the back of the agreement Russia signed with the Organization of Petroleum Exporting Countries over the last weekend.

Before that, Kuwait and Saudi Arabia have also notified customers that they will cut beginning in January.

Trade suggestion
Buy Stop at 55.00, Take profit at 55.50, Stop loss at 55.25

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

GBP/USD signal by Capital Street FX

From GMT 17:50 16/12/2016
Till GMT 21:00 16/12/2016

Buy at 1.25000
Take profit at 1.25400
Stop loss at 1.24800

Dollar Remains Strong Against Euro and Gold, BOJ Meeting Awaited

The U.S. dollar’s bull ran out of steam on Friday when the currency retreated from a 14-year high on Friday following a rally coming after Fed’s first rate hike in a year. The U.S. dollar index edged lower against a trade-weighted basket of six major currencies, but remained near Thursday’s peak of 103.55, a level not seen since December 2002.

For the week, the index soared around 1.3% as the U.S. Federal Reserve increased its benchmark rates by 0.25 percentage point on Wednesday and signaled a prospect of a more-aggressive rate-hike path in 2017. The central bank’s President Chair Woman Janet Yellen stated that the Fed may raise rates more quickly than previously anticipated with three rate increases in 2017, which is up from the two hikes predicted in September.

In the week ahead, there will be not much in the way of U.S. data but the release of Thursday’s final reading on U.S. third quarter gross domestic product. Market players will be eyeing fresh indications on the strength of the economy and further hints on the future path of monetary policy.

Closing the week, the Japanese Yen fell to 117.97 per dollar, trimming its losses to 2.2% on the week after dropping to Thursday’s 11-month trough of 118.65. The Bank of Japan is expected to hold its negative interest rates and 10-year government bond yield target steady at its monetary policy meeting on Tuesday.

Also on Tuesday, the Reserve Bank of Australia is scheduled to publish the minutes of its latest monetary policy meeting. Investors will be looking for insight into how the RBA’s officials view the economy and their policy options.

Last week was also a big loss for the euro when the single currency plummeted more than 1% and fell as low as 1.0365, the weakest level since January 2003. The pair EURUSD rebounded on Friday, finishing the week at 1.0450.

Gold prices recorded its sixth straight weekly decline on Friday, weighed by expectations for higher U.S. interest rates in the months ahead. Gold for February delivery on the Comex division of the New York Mercantile Exchange ended its last session of the week at $1,137.40 a troy ounce, pulling back from $1,124.30 logged on Thursday, a level not seen since February 2.

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

Can Weak Dollar and OPEC Deal Beat the Fear of Coming-back U.S. Crude?

Crude prices extended their gains on Monday on the back of a weakening U.S. dollar and anticipation that oil supplies will be tighter next year following the output-cut deal between OPEC and non-OPEC members.

February Brent crude advanced 0.71% to $55.63 per barrel on London’s ICE Futures exchange as market focus shifts back to the recent commitments from world’s top oil producers to trim their production. Almost 1.8 million barrels per day in global supply will be curbed from January 2017. Of that, the OPEC led by Arab Saudi pledged to cut production by 1.2 million barrels per day starting next month while other producers led by Russia committed to a cutback of 558,000 barrels per day.

On the other hand, the U.S. dollar continued to slide from its 14-year high recorded last Thursday. The dollar index, which gauges the relative strength of the greenback versus a basket of other leading currencies, has dropped 0.9% so far on the day. A retreat in the dollar is favorable for oil demand as crude prices tend to become more affordable for any country using its own currency domestically.

However, while major oil producers are making efforts to deplete the global supply glut by sticking to their agreement to cut production next year, U.S. producers, who did not join the production cut deal, are coming back to the market to take advantage of higher oil price. According to energy services firm Baker Hughes, drillers in the U.S. added 12 oil rigs in the week to Dec. 16, bringing the total to 510, the highest since January. The country’s production was also reported to edge higher, soaring from below 8.5 million bpd in July to almost 8.8 million bpd by mid-December.
Brent crude has been on a rise for three consecutive trading days after falling from the high at 57.23. As can be observed from the chart, crude price has been trading in an upwards trading range which has been formed from higher highs and higher lows. Oil price attempted to make a breakout of this range last Monday but failed to sustain its up moves. With RSI is heading upwards, the price action is expected to test the upper boundary but the upside seems limited.


Trade suggestion
Buy Stop at 55.60, Take profit at 56.50, Stop loss at 55.20

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

CAD/JPY signal by Capital Street FX

From GMT 07:00 19/12/2016
Till GMT 21:00 19/12/2016

Sell at 87.800
Take profit at 87.400
Stop loss at 88.000

Daily Report on December 19, 2016

The U.S. dollar, Treasuries bond yields and global shares declined on Monday after soaring last week. Asian equities fell a four-week low with MSCI's broadest index of Asia-Pacific shares outside Japan extending its losses for the third straight day, shedding 0.3 percent. European stocks also declined as investors cashed in profit. After having reached the highest level of the year on Friday, the Stoxx 600 Index retreated, weighed by bank stocks.

The dollar index ticked lower, as heightened geopolitical tensions over China’s seizure of a U.S. naval drone magnified bearish sentiment on the greenback which resulted from profit-taking following the currency’s rally since 2008.

Crude prices extended their gains on Monday on the back of a weakening U.S. dollar and anticipation that oil supplies will be tighter next year following the output-cut deal between OPEC and non-OPEC members. Almost 1.8 million barrels per day in global supply will be curbed from January 2017. However, U.S. producers, who did not join the production cut deal, are coming back to the market to take advantage of higher oil price. According to energy services firm Baker Hughes, drillers in the U.S. added 12 oil rigs in the week to Dec. 16, bringing the total to 510, the highest since January.

Metal prices fell on Monday following data from China that showed growth of housing prices slowed down in November from the month before. According to the report from the National Bureau of Statistics, China’s average price of new homes in 70 cities rose 0.6% in November compared to a 1.1% gain in October thanks to the government’s stringent property-buying controls in major cities and greater scrutiny of loans made to developers.

Elsewhere, Australia Treasury reported its Mid-Year Economic and Fiscal Outlook on Monday, stated that the government forecast a A$10 billion deterioration in its budget deficit over the next four years. The update has mounted concerns about a cut in the country's prized triple-A rating but S&P Global Ratings said the update had no immediate impact on the rating. Nonetheless, the rating agency still warned more revenue or saving steps would be needed to get back to surplus.

Technicals
USDCAD

Fig: USDCAD H4 technical chart
USDCAD rebounded from the 38.2% Fibonacci level at around 1.33100 and is heading upwards to the resistance at 1.34000. In a long term, the pair has been in a downtrend with lower highs formed along the way. In addition, the RSI has neared the oversold zone. Therefore, the upside seems limited.
Trade suggestion
Buy Stop at 1.33650, Take profit at 1.34000, Stop loss at 1.33300

USDJPY

Fig: USDJPY H4 technical chart
USDJPY has rebounded from the short-term 20-period moving average at 117.200 after a slide that sent the market near the oversold zone. As can be seen from the stochastic chart, the %K line has crossed over the %D line from below, suggesting a potential reversal into an uptrend.
Trade suggestion
Buy Stop at 117.600, Take profit at 118.300, Stop loss at 117.300

GBPCHF

Fig: GBPCHF H4 technical chart
After falling out of an upwards slopping trendline, the pair GBPCHF attempted to get back to the uptrend. However, the one-time support has turned into a new resistance which is putting pressure on the pair. RSI has move past the 50 line, indicating a strengthening bearish momentum.
Trade suggestion
Sell Stop at 1.27500, Take profit at 1.27000, Stop loss at 1.27750

WTI

Fig: WTI H4 technical chart
U.S. crude price is struggling around the resistance at 52.30 – the solid level that has been played as both resistance and support for the price since early this month. As the market has been in a bullish zone, the crude price may break above this handle and soar higher.
Trade suggestion
Buy Stop at 52.40, Take profit at 53.10, Stop loss at 52.00

USDJPY Plummets Ahead of BOJ’s Policy Decision

The dollar lost ground to its Japanese counterpart on Monday after six consecutive weeks of trading higher. The pair USDJPY fell nearly 1% to as low as 116.616 due to geopolitical tensions over China’s seizure of a U.S. naval drone that magnified bearish sentiment on the greenback which resulted from profit-taking following the currency’s rally since 2008.

The Bank of Japan will hold its final meeting of the year 2016 on Tuesday. The bank is expected to leave policy unchanged as a weakening yen in the last one and a half month has helped boost Japanese exports and inflation expectations.

Meanwhile in the U.S., Federal Reserve Chairwoman Janet Yellen is due to have a speech on the job market at 1:30 p.m. EDT. Yellen’s appearance comes less than a week after the U.S. central bank decided to hike rates and indicated a faster pace of rate increases next year than had previously been expected.

Trade suggestion
Sell Stop at 117.000, Take profit at 116.000, Stop loss at 117.500

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

Daily Report on December 20, 2016

Asian shares declined on Tuesday amid rising political uncertainties globally. Russia’s ambassador to Turkey was shot dead at an Ankara art exhibit by a lone Turkish gunman on Monday evening. The assassination of Russia’s envoy was believed to be a backlash against Russian military involvement in the Syrian civil war. Also contributing to sapping investor confidence in risky assets is violent incidents in Germany which killed 12 people and injured 48 others. Berlin police said they didn’t have firm evidence on whether this was a deliberate attack or just an accident.

The Japanese Yen, which is considered to be one of safe-haven assets, weakened in such a fragile stock market as the Bank of Japan left its monetary policy unchanged. The central bank kept its rate on some bank reserves intact at -0.1 percent and preserved its pledge to keep the yield on the 10-year Japanese government bond at around 0 percent.

As widely expected by economists, the BOJ upgraded its assessment of the economy on Tuesday, forecasting real gross domestic product will rise 1.5 percent in the next fiscal year starting April 1, nominal growth will increase to 2.5 percent and overall consumer prices will advance 1.1 percent. However, inflation expectations will remain in a weakening phase, it said.

Crude prices ticked lower on Tuesday with U.S. West Texas Intermediate crude oil futures trading at $51.87 per barrel while International Brent crude oil futures at $54.78 per barrel, both down from their last settlements. Traders began to unwind positions ahead of the upcoming Christmas weekend and the week running up to New Year.

Technicals
AUDUSD

Fig: AUDUSD H4 Technical Chart
AUDUSD is moving in a thin range after falling as low as 0.72420. The pair broke out of an upwards trading range last Wednesday and has been nose-diving since then. The pair has crossed over two major Fibonacci levels at 38.2% and 50.0% and is likely to test another important support at 61.8%.
Trade suggestion
Sell Stop at 0.72400, Take profit at 0.72100, Stop loss at 0.72550

USDCHF

Fig: USDCHF H4 Technical Chart
USDCHF reversed higher on the support of the short-term MA20. The pair was on a slide since it reached the high at 1.03430. Nonetheless, a short correction could not sustain its bearish momentum and had to give up its strength. Buyers have jumped in and may support the pair to re-attempt the 100% Fib. level.
Trade suggestion
Buy Stop at 1.02900, Take profit at 1.03300, Stop loss at 1.02700

Natural Gas

Fig: Natural gas H4 Technical Chart
Natural gas prices are ticking downwards under pressures from the short-term 20-period moving average. At the same time, the commodity is being supported by the level at 3.360 which has prevented the price from falling lower. However, with RSI index sliding in the bearish zone and a divergence between the +DI and –DI lines, natural gas is expected to test the support at 3.260.
Trade suggestion
Sell Stop at 3.340, Take profit at 3.260, Stop loss at 3.380

SP500

Fig: Sp500 H4 Technical Chart
Sp500 index has been moving sideways to higher for nearly a week. The price action is twisting with the short-term MA20. Steady up moves have retained the market in the bullish zone, where may support the index to retest the all-time record high at 2777.35.
Trade suggestion
Buy Stop at 2267.00, Take profit at 2277.00, Stop loss at 2262.00

EUR/AUD signal by Capital Street FX

From GMT 07:00 20/12/2016
Till GMT 21:00 20/12/2016

Sell at 1.43000
Take profit at 1.42600
Stop loss at 1.43200

Surprise Profits and Upgraded Outlook Lift BlackBerry Shares

Shares of BlackBerry Ltd. soared 3.11% in premarket trade on Tuesday after the Canadian software and device company reported its fiscal third-quarter earnings that came in better-than-expected.

BlackBerry narrowed its net loss to $117 million or 22 cents a share in the three-month period to November 30, from $372 million, or 71 cents a share, in the same period a year ago.

Adjusted to exclude items, the software and mobile security company posted a surprise profit for the quarter, earning 2 cents a share. Analysts had forecast a loss of one cent a share while the adjusted loss last year was three cents a share.

BlackBerry now expects to reach an adjusted per-share profit for the full current fiscal year. This is an positive update from the prior outlook that projects a range of breaking even to a loss of five cents a share.

Trade suggestion
Buy Stop at 7.97, Take profit at 8.20, Stop loss at 7.80

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