Daily Technical Analysis by Capital Street FX

Selling USD – Not Enough To Defend Weak Peso Weighed By Trump

Mexican peso rebounded after posting a record low at 21.624 per dollar on Wednesday as Mexico’s central bank sold dollars in Mexico and New York on Thursday to prop up the currency.

According to market sources, the central bank sold at least $1 billion in U.S. currency in morning trade in an attempt to fight off the peso’s steep down rally to record lows amid fears U.S. President-elect Donald Trump’s protectionist policies could further hurt Latin America’s second-biggest economy. The bank kept the amount confidential.

Last year, the peso was among the world’s worst performing currencies after having dropped around 20% in the wake of Trump’s presidential victory. The Mexico’s central bank had to intervene in the forex market by selling $2 billion to rescue the sinking peso. Nonetheless, the intervention was short-lived and the currency continued to trend lower.

The central bank sold at least $1 billion in U.S. currency in morning trade. The bank kept the amount confidential. The dollar sales mark the bank’s first currency intervention since February 2016, when it sold $2 billion to prop up the sinking peso. The peso depreciated 20 percent last year alone and was among the world’s worst performing currencies.

This time, the peso decline is expected to extend as Trump is putting pressure on U.S. companies to not build factory in Mexico. In a tweet on Thursday, the Trump threatened Toyota Motor Corp with a “big border tax” if it builds a new factory in Mexico to manufacture cars for the U.S. market.

Trade suggestion
Buy Limit at 21.25000, Take profit at 21.60000, Stop loss at 21.00000

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Daily Report on January 09, 2017

European stocks were mixed on Monday with U.K. shares advancing higher while German and broader European equities falling. Meanwhile, U.S. equity futures pointed to a positive territory as gains in most Asian markets helped fuel the bullish sentiment. Markets in Japan were closed for a holiday.

The Stoxx Europe 600 lost 0.41% to 363.85, with Lufthansa’s stock LHA topping the list of fallers. The German airline’s shares dropped more than 5% after it stated late Friday that fuel costs will rise this year. The company failed to provide an earnings forecast for 2017. Germany’s DAX 30 DAX shed 0.36% to 11556.14 and France’s CAC 40 slipped 0.56% to 4882.46.

Only the U.K.’s FTSE 100 was on a rise. The equity benchmark rose 0.22% to 7,227.25 as the pound fell following comments from Prime Minister Theresa May that signaled a “hard Brexit.” Sterling extended its decline from Friday. Britain’s Prime Minister Theresa May in an interview with Sky News on Sunday said that negotiations on Brexit will be about “getting the right relationship, not about keeping bits of membership.

The dollar strengthened as demand for the greenback was spurred by the latest non-farm payrolls which stoked optimism over the world’s largest economy’s growth and inflation moving towards the central bank’s 2% target. Data released last Friday showed the U.S. added 156,000 jobs in December and revised November’s reading sharply higher. More people attended the labour market and wage rose at a considerable rate, said the report.

Elsewhere, the offshore yuan witnessed its biggest two-day drop since June. The exchange rate fell another 0.6 percent on Monday, extending a 0.9 percent drop on Friday that was the biggest in a year. According to the People’s Bank of China, China’s foreign currency holdings fell for a sixth month in December. Due to the PBOC’s efforts to prop up the local currency, Chinese reserves plunged by $41.1 billion to a fresh five-year low of $3.01 trillion last month, sending last year’s drop to $320 billion.

Technicals
USDZAR

Fig: USDZAR H4 Technical Chart
USDZAR was on track to complete a double-bottom pattern after it rebounded from the 38.2% Fibonacci level. This is a strong support as it has prevented the pair from falling lower since mid-December, 2016. The price action has not only been able to cross over both short-term and long-term MAs but also did breach the resistance formed by connecting lower highs. The pair is expected to retest the resistance at 13.83700.
Trade suggestion
Buy Stop at 13.77500, Take profit at 13.83700, Stop loss at 13.75000

EURCAD

Fig: EURCAD H4 Technical Chart
EURCAD has been moving sideways following a steep drop last Friday. The pair has been under downward pressure exerted by the short-term 20-period moving average. Sellers still dominated in the market, as suggested by the RSI indicator index that is under 50.
Trade suggestion
Sell Stop at 1.39300, Take profit at 1.38800, Stop loss at 1.3500

GOLD

Fig: GOLD H4 Technical Chart
Gold remained above the 61.8% Fibonacci retracement with the support from the short-term MA20. As can be observed from the RSI and stochastic charts, both indicators are pointing to overwhelming bullish force in the market. Gold may retest the resistance at 1185.00.
Trade suggestion
Buy Stop at 1178.00, Take profit at 1185.00, Stop loss at 1175.00

CAC40 Index

Fig: CAC40 Index H1 Technical Chart
CAC 40 index plunged steeply from one-week high at 4924.90. The downward rally sent the price back to a support at around 4875.00 and brought the market into the bearish territory, as indicated by the RSI chart. In the event of continual decline, the index may retest the support at 4855.00.
Trade suggestion
Sell Stop at 4875.00, Take profit at 4855.00, Stop loss at 4885.00.

GBPUSD Sells Off As May Prioritizes Greater U.K. Sovereignty

British Pound lost more than 0.7% on Monday after a gap down following remarks by U.K. Prime Minister Theresa May that showed her priorities on regaining control of immigration and lawmaking rather than remaining in Europe’s single market.

In the first televised interview of the year 2017, May stated that leaving the European Union will be about “getting the right relationship, not about keeping bits of membership” and that “We are not going to be a member of the EU any longer, so the question is what is the right relationship for the U.K. to have with the European Union when we are outside,”

While her counterparts in the EU have warned PM May that membership of the tariff-free single market requires maintaining free movement of goods, services, capital and labor, her comments on Sunday seemed to focus on greater sovereignty for the U.K. Investors are still cautiously waiting for the Supreme Court to make its decision on what part parliament will play in Brexit negotiations.

Trade suggestion
Sell Stop at 1.21900, Take profit at 1.21500, Stop loss at 1.22100

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GBP/CHF signal by Capital Street FX

From GMT 09:50 09/01/2017
Till GMT 21:00 09/01/2017

Sell at 1.23800
Take profit at 1.23400
Stop loss at 1.24000

Daily Report on January 10, 2017

Asian shares were mixed on Tuesday. The MSCI Asia Pacific Index rose 0.4%, led by gains in Hong Kong’s Hang Seng Index which added 0.5 percent. Equities in New Zealand and Singapore rose while stock benchmarks such as Australia’s S&P/ASX 200 Index, Korea’s Kospi index and Shanghai Composite Index were in red. Japan’s Topix also dropped on the back of a strengthening yen. The stock index lost 0.6%, after paring an earlier loss during the Asian morning trading session.

Crude price were struggling for direction ahead of European trading hours after losing nearly 4% on Monday. Expectations over output cuts planned by some members of the Organization of the Petroleum Exporting Countries (OPEC) and other producers such as Russia eased worries about rising oil rigs in the U.S., which was reported to have advanced for 10 weeks in a row.

According to the National Statistics Bureau on Tuesday, China's producer prices rose much better than expected last month. Led by prices of coal and other raw materials, the country’s prices of coal and other raw materials surged 5.5% in December from a year earlier. The headline reading reached a 3.3 percent increase, soaring past both expectations of a 4.5% gain and November’s result of a 3.3% increase.

Meanwhile, consumer prices remained subdued. Consumer inflation rose only 2.1 percent on a yearly basis, weighed down by food prices that rose at a more modest pace. The government research institute, the China Academy of Social Sciences (CASS), forecast a growth of 2.2 percent in CPI and an increase of 1.6 percent in PPI in 2017. This is good news for the country as for 2016, CPI rose 2.0 percent while PPI slid 1.4 percent.

In Australia, retail sales rose 0.2% in November compared to the previous month, as stated by the Australian Bureau of Statistics. The figure rose much less than economist’s expectation calling for a 0.4% rise.

Technicals
NZDJPY

Fig: NZDJPY H4 Technical Chart
NZDJPY has been on a decline with the price action crossing over a couple of moving averages from above. RSI has fallen below the 50 line, signaling strengthening sellers in the market. The pair may test the support at 80.800.
Trade suggestion
Sell Stop at 81.100, Take profit at 80.800, Stop loss at 81.200

USDMXN

Fig: USDMXN H4 Technical Chart
USDMXN extended its up moves after pulling back from as low as 21.21100. The pair has been supported by the short-term 20-period MA20 and is likely to attempt the all-time record high at 21.60000. While RSI is surging to the overbought zone, ADX index is edging higher with wide gap between the +DI and –DI lines.
Trade suggestion
Buy Stop at 21.50000, Take profit at 21.60000, Stop loss at 21.45000

AUDJPY

Fig: AUDJPY H4 Technical Chart
AUDJPT rebounded from the slopping uptrend line which has been formed by higher lows. Long lower shadows in recent candles also indicate strong bullish force that helped prevent the price from falling lower. RSI pulled back from the central line, indicating overwhelmingly dominating buyers.
Trade suggestion
Buy Stop at 85.400, Take profit at 85.900, Stop loss at 85.200

COFFEE

Fig: Coffee H4 Technical Chart
Coffee price once again moved past the 50.0% Fibonacci retracement. The commodity reversed higher after a correction. The short-term MA20 has penetrated the long-term MA50 from below, suggesting further advance. As can be seen from the stochastic chart, the %K line has crossed over the %D line, confirming the uptrend.
Trade suggestion
Buy Stop at 145.00, Take profit at 147.50, Stop loss at 144.00

GBP/AUD signal by Capital Street FX

From GMT 07:00 10/01/2017
Till GMT 21:00 10/01/2017

Sell at 1.64800
Take profit at 1,64000
Stop loss at 1.65200

Improved Same-store Sales And Share Buyback Program Rescue Chipotle Shares

Shares of Chipotle Mexican Grill Inc swung back into positive territory after losing nearly 4% in premarket trading hours. The sharp decline came after the burrito chain had stated that comparable sales would fall during the fourth quarter.

However, the result came in higher than previously anticipated. The company witnessed progressive improvement after each month of the last quarter. Indeed, Chipotle’s same-store sales slid just 1.4 percent in November, and increased 14.7 percent in December after having plunged as much as 20 percent in October.

The restaurant chain also authorized a new $100 million share repurchase program, which helped push the company’s shares around 4% higher in U.S. session on Tuesday.

Trade suggestion
Buy Stop at 410.60, Take profit at 414.00, Stop loss at 408.00
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Dow Pares Gains, Trump’s Press Conference Tempers Trading Enthusiasm

U.S. equities turned higher on Tuesday with major benchmarks trading near record levels. The Dow Jones Industrial Average hit an intra-day high at 19.957 before retreating to 19.912, up 0.13% compared to the open price.

Investors are awaiting a news conference from President-elect Donald Trump set for Wednesday and corporate earnings season. American Express Co. and Caterpillar Inc led gainers. The former gained 2.19% while the latter was up 1.97%.

Goldman Sachs Group was the biggest faller of the index as the bank was downgraded to “sell” citing valuation by Citigroup. The downgrade sent Goldman Sachs’s stock down as much as 1.6 percent. Large U.S. banks are due to start reporting fourth-quarter results on Friday. This is their first quarterly earnings reports since the election in November and the Federal Reserve’s rate hike in December.

Trade suggestion
Sell Stop at 19.900, Take profit at 19.840, Stop loss at 19.930
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Daily Report on January 11, 2017

Asian shares surged to two-month highs while European equities opened flat on Wednesday ahead of President-elect Donald Trump's news conference later in the day. Investors will be looking for clues on policies on taxes, fiscal spending, international trade and currencies under the new administration as Trump's election campaign has already called for tax cuts and more infrastructure spending, which helped boosted U.S. shares and the dollar.

MSCI's broadest index of Asia-Pacific shares outside Japan gained 0.5%, led by South Korean shares that hit a 1-1/2-year peak. The gains in Kospi Index in Seoul were thanks to Samsung Electronic - Asia's biggest company by market cap whose shares were spurred by solid earnings published last week. Meanwhile, Japanese benchmarks edged higher, curbing three days of losses.

Australia’s S&P/ASX 200 Index and New Zealand’ S&P/NZX 50 Index rose on the back of strong miners and technology shares. Hong Kong’s Hang Seng Composite Index looked set for a 10th day of gains and the longest winning run since 2012 with a 0.5% rise.
Crude prices recovered from more than one-month lows recorded Tuesday. Oil slumped further after the American Petroleum Institution late Tuesday reported that U.S. crude supplies added 1.5 million barrels for the week ended Jan. 6. The U.S. Energy Information Administration (EIA), which is scheduled to release its latest figures on Wednesday, stated that American crude production would rise by 110,000 barrels per day (bpd) to 9 million bpd in 2017.

The up moves on Wednesday came amidst mounting reports of Saudi supply cuts. Saudi Arabia, the world's top oil exporter, was reported to cut crude supplies slightly from contracted volumes in February, including to India and Malaysia.

Technicals
EURAUD

Fig: EURAUD H4 Technical Chart
EURAUD has breached the major support at 1.43000 after two days of declines. The pair continued to be under downward pressure from the short-term MA20 and is heading towards another support at 1.42200. RSI has nearly reached the oversold territory while ADX is soaring with a wide gap between +DI and –DI lines.
Trade suggestion
Sell Stop at 1.42800, Take profit at 1.42200, Stop loss at 1.43100

AUDUSD

Fig: AUDUSD H4 Technical Chart
After a period of moving sideways, AUDUSD finally broke out of the range and ticked higher. The pair has been supported by the short-term 20-period moving average which may send the pair to the resistance at 0.74250. The level prevented the price from surging higher nearly one month ago.
Trade suggestion
Buy Stop at 0.73850, Take profit at 0.74250, Stop loss at 0.73650

BRENT

Fig: BRENT H4 Technical Chart
As indicated by the RSI indicator chart, Brent crude fell into the oversold market yesterday after a steep decline and is struggling to find the way back. The commodity recovered from as low as 53.57 due to a correction and is expected to retest the resistance at 54.35.
Trade suggestion
Buy Stop at 53.90, Take profit at 54.35, Stop loss at 53.70

CAC40 Index

Fig: CAC40 Index H4 Technical Chart
CAC 40 index has been on a sharp down move which helped bring the price action below both the short-term and long-term moving averages. The index was trapped between two MAs before breaking lower the long-term MA50 which may indicate a reversal into a downtrend. The support at 4825.00 is within the sight.
Trade suggestion
Sell Stop at 4855.00, Take profit at 4825.00, Stop loss at 4870.00

Weak Production and Strong Brazil Real Push Coffee Prices Up

Coffee futures rose on Wednesday, extending gains to the third-straight session and looked set to close higher for the seventh trading day in the last nine day.

The commodity was supported by report from Brazilian coffee exporter Terra Forte that showed arabica production down 13% on a yearly basis to 38.18 million 60-kg bags. The first crop report for 2017-18 also saw robusta production down 5% year on year, to 9.88 million bags.

In addition, the Brazil real strengthened versus the U.S. dollar, which tends to send prices of the agricultural commodity in real terms lower. This prompted Brazilian exporters to sell less to the foreign market. Furthermore, Brazilian farmers are also unwilling to sell their coffee stocks as they earn lower profits due to their expenses being mostly in reals.

Trade suggestion
Buy Stop at 148.50, Take profit at 150.00, Stop loss at 147.50

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EUR/GBP signal by Capital Street FX

From GMT 06:00 11/01/2017
Till GMT 21:00 11/01/2017

Buy at 0.86800
Take profit at 0.87200
Stop loss at 0.86600

Daily Report on January 12, 2017

The U.S. dollar slipped on Thursday, as President-elect Donald Trump's highly-awaited news conference contained no details on tax cuts and infrastructure spending. Trump, who takes office on Jan. 20, failed to offer details on those two factors that had fuelled the five-week rally in stocks and dollar, and instead took aim at pharmaceutical companies and U.S. intelligence agencies in his first news conference since the Nov. 8 election.

As a result, the dollar index, which tracks the U.S. currency against a basket of six major counterparts, slipped 0.63 percent to 101.08 in early European trading hours. The benchmark had risen to a one-week high on Wednesday, ahead of Trump's news conference. The greenback fell to as low as 114.047 yen, its lowest since Dec. 9, down more than 1% on the day.

Trump did not mention possible tariffs against Chinese exports as well, which is considered a relief for Asian share markets that concerned the outbreak of a global trade war. MSCI's broadest index of Asia-Pacific shares outside Japan jumped 0.6 percent to its highest since late October. Shanghai stocks edged up 0.2 percent while Japan's Nikkei slipped 0.9 percent as the yen climbed on a retreating dollar.

According to NDRC spokesman Zhao Chenxi on Thursday, China approved 227 projects worth 1.704 trillion yuan ($246.55 billion) in 2016. In December only, the country’s National Development and Reform Commission (NDRC) approved 23 fixed-asset projects worth 184.0 billion yuan. China will invest 1.2 trillion yuan ($173.57 billion) between 2016 and 2018 in a three-year action plan to develop information infrastructure.

Technicals
USDJPY

Fig: USDJPY H4 Technical Chart
As can be seen from the price chart, USDJPY has breached the 61.8% Fibonacci retracement at 114.105. As the market has entered the oversold zone, the decline is expected to be short-lived. However, the –DI is soaring strongly, suggesting that the pair can attempt the support at 113.200 – the lowest level since December 08, 2016.
Trade suggestion
Sell Stop at 113.900, Take profit at 113.200, Stop loss at 114.200

NZDUSD

Fig: NZDUSD H4 Technical Chart
NZDUSD retreated from a one-month high at 0.71200 as the sharp rally had sent the market into the overbought one. The pair is expected to fall into a correction before resume its up moves. A surging ADX index with a divergence between the +DI and –DI lines show a strong bullish momentum in the market.
Trade suggestion
Buy Stop at 0.71200, Take profit at 0.71600, Stop loss at 0.71000

WTI

Fig: WTI H4 Technical Chart
U.S. light sweet crude price pulled back after hitting the short-term MA20 at 52.13. The commodity is swinging back and forth around the key level at 52.30. The dynamic resistance – long-term MA50 is within the sight. RSI moving past 50 line indicates further advances.
Trade suggestion
Buy Stop at 52.50, Take profit at 53.00, Stop loss at 52.25

EURO 50 Index

Fig: EURO 50 Index H1 Technical Chart
Euro 50 index opened today’s session with a wide gap down and kept falling lower to retest yesterday’s low at around 3283.40. Two latest bearish candles have no upper shadows, showing strong sellers in the market. RSI index which returned to the bearish zone also confirms further declines.
Trade suggestion
Sell Stop at 3285.00, Take profit at 3270.00, Stop loss at 3390.00

Natural Gas Extends the Rally on Colder Weather and Declining Storage Forecasts

Natural gas futures have been riding on a rally for three days in a row in the wake of forecasts for the weather to turn colder than normal in the last week of January. In addition, analysts expect that U.S. storage of the commodity would decline last week.

Latest weather forecasters at Commodity Weather Group pointed out “signs of colder change increasing for the final week of January”, predicting seasonal to below-normal temperatures for the US Midwest, East and South over the next 16 to 30 days.

Meanwhile, weekly storage data, which is due for release on Thursday, is anticipated to show a draw in a range between 135 and 143 billion cubic feet in the week ended January 6. According to the U.S. Energy Information Administration, total natural gas in storage currently stands at 3.311 trillion cubic feet. That is 9.9% lower than levels at this time a year ago and less than 1% below the five-year average for this time of year.

Trade suggestion
Buy Stop at 3.355, Take profit at 3.440, Stop loss at 3.315


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USD/CAD signal by Capital Street FX
From 1.31200
Till 1.30800
Option Digital
Direction Put
Expiry GMT 21:00 12/01/2017

EUR/GBP signal by Capital Street FX

From 0.87400
Till 0.88000

Buy Option Digital
Direction Call
Expiry GMT 21:00 13/01/2017

Daily Report on January 13, 2017

While Asian stocks slipped after rising to its highest levels since late October in the previous session, European and U.S. stocks looked to finish this week higher on Friday. The Stoxx Euro 600 Index rebounded from its biggest drop since the end of November recorded on Thursday. Market sentiment was supported by remarks of Federal Reserve Chair Janet Yellen reiterating that the U.S. economy is doing well.

Investors were looking to earnings reports from U.S. big banks including JP Morgan Chase, Bank of America Merrill Lynch and Wells Fargo later in the day. Report on U.S. holiday-season retail sales will also be published by the Census Bureau before the U.S. session opens.

Meanwhile, the U.S. dollar was on track for its biggest weekly fall in two months as investors continued to assess whether market moves since the U.S. election have gone too far. The U.S. currency touched the lowest point in almost a month on Thursday. Gold increased on the back of a weak dollar. The precious metal rose for a fifth day, trading near the highest price in almost two months.
The Shanghai Composite Index slipped to its lowest level of the year on Friday following data showed China’s overseas shipments remained subdued. The world's largest trading nation witnessed exports fall 7.7 percent and imports slide 5.5 percent in 2016. Chinese exports dropped for the second year in a row and the most since the depths of the global crisis in 2009.

According to the country's customs agency, it will be tough for foreign trade to improve this year due to potential political changes in the U.S. under Trump’s administration which may result greater protectionist measures. China imported record amounts of crude oil, iron ore, copper and soybeans, especially coal used for heating and in steelmaking in 2016.

Oil futures prices fell on Friday even data showed China imported 8.56 million barrels of crude oil per day (bpd) in December. There are mounting concerns over rising U.S. shale output and increasing supply from OPEC members Nigeria and Libya which might offset any reductions from an output-cut deal signed between OPEC and non-OPEC members.

Technicals
NZDJPY

Fig: NZDJPY H4 Technical Chart
NZDJPY pulled back after failing to breach the 50.0% Fibonacci retracement. The pair extended its rally following a correction as investors took profit from the highest level since January 03rd. Bullish momentum is expected to push the pair as high as 82.000.
Trade suggestion
Buy Stop at 81.700, Take profit at 82.000, Stop loss at 81.550

GOLD

Fig: GOLD H4 Technical Chart
Gold rebounded from short-term MA20 at 1191.95. The dynamic support has helped the precious metal to pull back higher for two weeks. The market remained in the bullish zone which may fuel the price to as high as 23.6% Fibonacci resistance.
Trade suggestion
Buy Stop at 1198.00, Take profit at 1207.00, Stop loss at 1195.00

WTI

Fig: WTI H4 Technical Chart
U.S. crude price has been trapped in a slopping downward trading range. The commodity fell sharply to the support at 52.30 after struggling for direction around the upper boundary formed by lower highs. RSI has moved past the 50 line, suggesting an overwhelming bearish force in the market, but the short-term MA20 is within the sight.
Trade suggestion
Buy Limit at 52.00, Take profit at 52.70, Stop loss at 51.65

DAX 30 Index

Fig: DAX 30 Index H4 Technical Chart
German Dax 30 index is facing the long-term MA50 which has retrained the price’s rally before. In the event of continual up moves, the benchmark is expected to surge as high as 11650.00. RSI index has moved past the central line, confirming the uptrend.
Trade suggestion
Buy Stop at 11600.00, Take profit at 11650.00, Stop loss at 11575.00

USD/CHF signal by Capital Street FX

From GMT 06:30 13/01/2017
Till GMT 21:00 13/01/2017

Sell at 1.00900
Take profit at 1.00500
Stop loss at 1.01100

Daily Report on January 16, 2017

European equities were lower in early trade on Monday, dragged down by banking and auto shares. Meanwhile, weakness in the pound helped Britain's FTSE rise to a fresh record high. The Stoxx Europe 600 Index fell 0.6 percent, adding to a 0.3% decrease in the MSCI All-Country World Index.

In Asia, Japanese shares lost ground on the back of a strengthening Yen with Topix index slipping 0.9 percent, while the Nikkei 225 Stock Average erasing its gains for 2017. Shanghai Composite fell 0.3 percent after paring a loss of as much as 2.2% and Hong Kong’s Hang Seng gauge lost 1%, weighed down by China’s Shenzhen Composite Index which tumbled as much as 6.1 percent.

Stocks in China’s second-largest equity market scored the biggest loss since Feb. 29, showing the increasing fragility of the nation’s financial assets. There are mounting concerns that regulators will accelerate the pace of initial public offerings which is already at a 19-year high. This will divert liquidity from existing shares.

Sterling dropped to as low as $1.1986 – an all-time record low level amidst mounting concerns that U.K. Prime Minister Theresa May will emphasize that she priorities curbing immigration and striking commercial deals with other countries over preserving tariff-free trade with the region. Although the U.K. Treasury was reported to plan to calm investors after May’s speech and the Times of London reported Donald Trump would offer a quick trade deal to Britain when he assumes power, the sterling is expected to remain under pressure until May has delivered her speech on Tuesday.

Crude futures edged lower on Monday, driven mainly by a stronger U.S. dollar while investors are nervously awaiting reports on major global producers’ output. U.S. markets are closed on Monday for Martin Luther King Jr. Day; therefore, the release of U.S. oil output and inventory for the week ending Jan. 13 will be delayed one day to Thursday. Before that, market participants will pay attention to the monthly production data released by OPEC on Wednesday.

Technicals
USDJPY

Fig: USDJPY H4 Technical Chart
USDJPY is trading around the 61.8% Fibonacci level at 114.100. The pair is under downward pressure created by two moving averages but at the same time is supported by the 61.8% Fib. handle. The dollar had tried to break below this stance last week and the market fell into a correction. Now bears have come back and may push the pair lower. The support at 113.200 is within the sight.
Trade suggestion
Sell Stop at 114.000, Take profit at 113.200, Stop loss at 114.400

EURAUD

Fig: EURAUD H4 Technical Chart
EURAUD has been weighed down by a couple of moving averages. The currency pair reversed lower from the key resistance at 1.40000 and is heading downwards to the support at 1.38800. RSI index remains under 50 line, indicating an overwhelmingly dominating sellers in the market.
Trade suggestion
Sell Stop at 1.39000, Take profit at 1.38600, Stop loss at 1.39200

BRENT

Fig: BRENT H4 Technical Chart
Brent crude has been locked in a slopping downward trading range but is supported by the level 55.30. The commodity is trading near the upper boundary, and if the pair could not break out of this range, a decline to as low as 54.35 is possible.
Trade suggestion
Sell Stop at 55.30, Take profit at 54.35, Stop loss at 55.80

DAX 30 Index

Fig: DAX 30 Index H1 Technical Chart
Dax 30 index opened the market with a gap down, which brought the price action below both the short-term and long-term moving averages. That suggested the bearish force is dominating in the market and may send the benchmark to the support at 11540.00. If this level is broken, another support at 11500.00 may be tested.
Trade suggestion
Sell Stop at 11540.00, Take profit at 11500.00, Stop loss at 11560.00

May’s Brexit Speech Pushes Pound To Record Low Versus Dollar

The British pound tumbled on Monday versus its American counterpart after a report on the Sunday Times said that U.K. Prime Minister Theresa May might sacrifice the European’s single market for the ability to regain control of Britain’s borders and laws.

Sterling dropped to as low as $1.1986 – an all-time record low level amidst mounting concerns that May on Tuesday will emphasize she priorities curbing immigration and striking commercial deals with other countries over preserving tariff-free trade with the region.

Although the U.K. Treasury was reported to plan to calm investors after May’s speech and the Times of London reported Donald Trump would offer a quick trade deal to Britain when he assumes power, the sterling is expected to remain under pressure until May has delivered her speech on Tuesday.

Trade suggestion
Sell Limit at 1.20500, Take profit at 1.19900, Stop loss at 1.20800

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NZD/JPY signal by Capital Street FX

From GMT 07:00 16/01/2017
Till GMT 21:00 16/01/2017

Sell at 80.800
Take profit at 80.450
Stop loss at 81.000