Daily Technical Analysis by Capital Street FX

Daily Report on January 17, 2017

Global stocks were broadly weaker on Tuesday as investors as investors waited for British Prime Minister Theresa May’s speech later on the day. PM May will lay out plans to exit the European Union amid fears Britain will lose access to the single market. In Asia, Japan's Nikkei .N225 dropped 1.5%, brushing a five-week low while Australia and Shanghai also suffered losses.

European shares opened lower and remained in a negative zone. Stoxx Europe 600 lost 0.46% at 361.43, and Germany's DAX slipped 0.65% to 14,479.38. France's CAC 40 and U.K.'s FTSE 100 shed 0.56% and 0.42%, respectively. U.S. market will reopen after a holiday on Monday. Futures on the S&P 500 Index slid 0.4 percent, weighed by heightened risk aversion stemming from Brexit and uncertainty over Trump's plans.

According to excerpts of a speech released by her office on Monday, Prime Minister Theresa May is set to declare Tuesday that the U.K. wants a clean break from the European Union. This means Britain will not seek a Brexit deal that leaves it “partial membership” in the EU “or anything that leaves us half-in, half-out,”, but a “hard” deal that may witness the U.K. leave the EU's single market. May has been reiterating that one of her priorities in upcoming divorce talks with the bloc is regaining full control of Britain's borders.

Safe-havens such as the yen, gold and Treasuries gained in turn. Gold for February delivery rose 1.47% to as high as $1213.18 an ounce, trading at levels not seen since November 23, 2016. Meanwhile, Japanese Yen extended its gains to a seventh consecutive trading day. The pair USDJPY plunged nearly 1% to trade at 113.0780.

Technicals
NZDUSD

Fig: NZDUSD H4 Technical Chart
Supported by the short-term MA20, the currency pair NZDUSD broke out of an indecisive trading mood to edge higher on Tuesday. The pair has also breached the 23.6% Fibonacci level at 0.71622 and is heading upwards the highest level since mid-December.
Trade suggestion
Buy Stop at 0.71800, Take profit at 0.72300, Stop loss at 0.71500

USDCAD

Fig: USDCAD H4 Technical Chart
USDCAD plunged sharply from as high as 1.31887 to the support at 1.30500. The price action did break through the short-term MA20 but failed to resist the downward pressure from the long-term MA50. The support at 23.6% Fibonacci retracement is within the sight.
Trade suggestion
Sell Stop at 1.30500, Take profit at 1.29900, Stop loss at 1.30800

BRENT

Fig: BRENT H4 Technical Chart
Brent crude has made a break-out from a sloping downward trading range that connects lower lows and lower highs. The commodity took off to more than one-week high at 56.72 before retreating a little bit and struggling around the 56.60 resistance. Observing previous cycles, this is not a so strong handle. In the event of continual uptrend, Brent crude may test the level 57.30.
Trade suggestion
Buy Stop at 56.70, Take profit at 57.30, Stop loss at 56.40

SILVER

Fig: SILVER H4 Technical Chart
Silver remained in a steady up trend with the price moving towards the one-month high level at 17.200. The metal has consistently been fueled by two moving averages that are hanging below the price action. RSI index is soaring but has not yet reached the overbought zone, suggesting rooms for further advance.
Trade suggestion
Buy Stop at 17.050, Take profit at 17.200, Stop loss at 16.900

Morgan Stanley Follows In Rivals’ Steps With Upbeat Earnings Report

Shares of Morgan Stanley added 1.8% to trade at $44.60 per share in pre-trading hours on Tuesday after the bank announced that its quarterly earnings climbed and beat analyst expectations.

The New York-based firm saw its strongest fourth-quarter profit since the financial crisis with a profit of $1.67 billion, or 81 cents a share. Fueled by a surge of post-election trading activity, the bank’s last-quarter result surpassed the $908 million, or 39 cents a share reported in the same period a year earlier.

Morgan Stanley stated that revenue grew to $9.02 billion in the three-month period ending December from $7.74 billion a year earlier, beating expectations of 65 cents a share on revenue of $8.47 billion in the fourth quarter.

Trade suggestion
Buy Stop at 44.60, Take profit 45.50, Stop loss at 44.00

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USD/CAD signal by Capital Street FX

From GMT 08:00 17/01/2017
Till GMT 21:00 17/01/2017

Sell at 1.30900
Take profit at 1.30500
Stop loss at 1.31100

Sterling On Track For The Best One-day Gain Following May’s Speech

Sterling surged steeply on Tuesday, on track for its best one-day gain against the dollar since 2008, after Prime Minister Theresa May said her country would leave the EU’s single market when it exits the European Union.

The currency pair GBPUSD hit 1.23970 – the highest level since January 06th even after PM May put an end to expectation that Britain may seek a “soft Brexit”. In a speech at London’s Lancaster House on Tuesday, the prime minister stated that she will try to achieve “the freest possible trade” with the EU while regaining the control of “the number of people who come to Britain from Europe”.

May said that she will reject the common external tariff which prevents Britain from negotiating separate trade deals with third countries and that both houses of parliament would have a vote on the final Brexit deal, expected in early 2019.

Trade suggestion
Buy Stop at 1.23900, Take profit 1.24300, Stop loss at 1.23700

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Daily Report on January 18, 2017

European equities opened higher while Asian stock markets stabilized near three-month highs on Wednesday, pushed higher by Hong Kong and Chinese shares. The MSCI's ex-Japan Asia-Pacific shares index advanced 0.4 percent, just shy of a three-month high hit last Thursday. Hong Kong’s Hang Seng rose 1.2 percent and continued its run to the highest level since November. Meanwhile, Tokyo shares erased losses as yen retreated.

Gold and Japanese yen lost ground for the first time in eight trading session although the U.S. dollar remained weak. The greenback fell against most peers after president-elect Donald Trump told the Wall Street Journal that the dollar is “too strong” while China holds down its own currency. Chinese shares gained amid speculation of state efforts to ensure market stability during President Xi Jinping’s appearance at the World Economic Forum in Davos.

The pound witnessed its biggest daily advance against the dollar since the global financial crisis on Tuesday, after Prime Minister Theresa May said U.K. lawmakers will get a vote on the final deal for an exit from the trading bloc. In a highly anticipated speech on Tuesday, PM May planned out the government’s Brexit strategy which involves pulling out of the EU’s single market.

The U.S. Energy Information Administration on Tuesday said that U.S. shale production was set to snap a three-month decline in February. Due to the fact that energy firms have been boosting drilling activity with crude prices hovering near 18-month highs, February production is forecast to edge up 40,750 barrels per day (bpd) to 4.748 million bpd, marking the first month-on-month increase in production since October.

In New Zealand, overall prices in the latest Global Dairy Trade (GDT) auction rose for the first time in three auctions. The index gained 0.6% to $3,517 following a 3.9% decline in the first auction of 2017, broadly in line with consensus expectations of a slight improvement.

Technicals
AUDCAD

Fig: AUDCAD H4 Technical Chart
AUDCAD has been swinging back and forth around the 50.0% Fibonacci since Tuesday, despite support from short-term MA20. As indicated by RSI index, buyers are overwhelming in the market, which may help the pair break out of the current trading range to surge higher.
Trade suggestion
Buy Stop at 0.98800, Take profit at 0.99200, Stop loss at 0.98600

EURNZD

Fig: EURNZD H4 Technical Chart
EURNZD has fallen back below the support at 1.48500 after brief correction. The pair looks set to extend its downtrend with bearish force reigning in the market. While RSI is heading towards the oversold zone, ADX index is edging higher, suggesting strong sellers.
Trade suggestion
Sell Stop at 1.48300, Take profit at 1.47700, Stop loss at 1.48600

WTI

Fig: WTI H4 Technical Chart
WTI crude prices have breached the support at 52.30 and also returned to the trading range formed by lower highs and lower lows. The price action has crossed over the moving averages from above, indicating a reversal into a down trend. The support at 51.50 is within the sight.
Trade suggestion
Sell Stop at 52.00, Take profit at 51.50, Stop loss at 52.25

EURO 50 Index

Fig: EURO 50 Index H4 Technical Chart
Euro 50 Index opened higher but soon pared all of its gains in early trade to head lower. It seems like the index failed to resist the resistance at 3300.00 and two MAs that are hanging above the price action. The stock benchmark may find its support at 3260.00.
Trade suggestion
Sell Stop at 3280.00, Take profit at 3260.00, Stop loss at 3290.00

CSX Shares Plunge After Company’s EPS Misses Q4 Earnings

Shares of CSX Corp. plummeted nearly 4% late Tuesday after the No. 3 U.S. railroad reported fourth-quarter earnings that missed expectations.
The Jacksonville, Florida-based company said it earned $458 million, or 49 cents a share, in the quarter, compared with $466 million, or 48 cents a share one year ago. CSX reported fourth-quarter sales of $3.04 billion, beating $2.78 billion in the year-ago period. However, analysts forecast the company’s adjusted earnings of 50 cents a share on sales of $2.88 billion.

Coupled with low commodity prices and strength in the U.S. dollar in 2016, higher costs for labor, materials and fuel were also headwinds that caused CSX’s profit to dip compared with a year earlier.

Trade suggestion
Sell Stop at 36.58, Take profit 35.50, Stop loss at 37.00

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GBP/USD signal by Capital Street FX

From GMT 07:00 18/01/2017
Till GMT 21:00 18/01/2017

Buy at 1.23500
Take profit at 1.24100
Stop loss at 1.23200

Daily Report on January 19, 2017

European shares were struggling for direction in the early trade on Thursday, with investors taking a cautious stance ahead of the European Central Bank’s first policy meeting of the year and then President-elect Donald Trump’s inauguration scheduled for Friday. The dollar eased off its gains stemming from hawkish remarks from Federal Reserve Chairwoman Janet Yellen late Wednesday.

Markets are focusing on the ECB meeting in Frankfurt. The European central bank led by President Mario Draghi is expected to make no changes to its easing position and interest rates, after extending the run of quantitative easing in December. The rate decision is due at 12:45 p.m. London time, or 7:45 a.m. Eastern Time, followed by Draghi’s press conference at 1:30 p.m. GMT.

The U.S. dollar strengthened in Asian session. Speaking before the Commonwealth Club of California in San Francisco yesterday, Fed Chair Janet Yellen stated that the national economy has been near full employment with inflation heading toward the Federal Reserve's 2 percent goal. This "makes sense" for the U.S. central bank to reduce the level of monetary support gradually and lift interest rates “a few times a year” through 2019.

Crude price remained subdued; paring earlier gains achieved after the American Petroleum Institute late Wednesday reported a drop in U.S. crude supplies last week. The API data showed a decrease of 5 million barrels in U.S. crude supplies for the week ended Jan. 13. However, the report also indicated a jump of 9.8 million barrels in gasoline supplies and a rise of 1.2 million barrels in distillates. Supply data from the Energy Information Administration will be released later on the day.

Elsewhere, the Australian Bureau of Statistics on Thursday reported the number of people employed rose by 13,500, compared with an expected 10,000 increase. With participation rate rising to 64.7% in December from 64.6% in November, the jobless rate advanced for a second-straight month, hitting a higher-than-expected seasonally adjusted 5.8% in December, from 5.7% in November.

Technicals
GBPJPY

Fig: GBPJPY H4 Technical Chart
GBPJPY has breached above the 23.6% Fibonacci retracement and is struggling around the 141.400 – the level it has moved sideways before. Both the RSI and ADX index are soaring, suggesting a strong uptrend. A firm support at 142.500 can turn into a resistance for the pair.
Trade suggestion
Buy Stop at 141.500, take profit at 142.500, stop loss at 141.000

EURGBP

Fig: EURGBP H4 Technical Chart
EURGBP reversed lower after a correction that took the pair to as high as 0.87066. However, the bull run failed to sustain its momentum and had to let the bear jump in. The short-term MA20 has crossed over the long-term MA50 from above, confirming the down move.
Trade suggestion
Sell Stop at 0.86500, take profit at 0.86000, stop loss at 0.86750

BRENT

Fig: BRENT H4 Technical Chart
Brent crude is swinging around the 54.35 level. Latest candles with short bodies and long shadows (both upper and lower) indicate that the market is struggling for direction. Steep drop yesterday brought the price into a correction but buyers could not retain its strength. The short-term MA20 has converged with the MA50 from above, suggesting further down moves.
Trade suggestion
Sell Stop at 54.20, take profit at 53.60, stop loss at 54.50

SUGAR

Fig: Sugar H4 Technical Chart
Sugar has broken out of a narrow trading range, which is between the support at 20.50 and the 23.6% Fibonacci retracement, to surge strongly higher. The commodity also surpassed the highest level since November 15th and is heading to the resistance at 21.80. The %K line is taking lead ahead of the %D line.
Trade suggestion
Buy Stop at 21.30, take profit at 21.80, stop loss at 21.00

Netflix Records Rising Earnings with Strong New Subscribers Globally

Shares of Netflix rose as much as 8.2 percent in after-hours trading after the company reported a profit for its fourth quarter that advanced compared to the same period last year.

Streaming video pioneer earned $66.75 million, or $0.15 per share in the three-month period ending December, which is up from 29.74 million, or $0.07 per share, in last year’s fourth quarter. Revenue for the quarter rose 36.3% to $2.48 billion, surpassing $1.82 billion recorded last year.

In its earnings report, Netflix said the number of new subscribers surged by 7.1 million globally, which is far more than the 5.2 million analysts had expected. The company also plans to release more than 1,000 hours of original programming this year, up from 600 hours last year.

Trade suggestion
Buy Stop at 143.80, Take profit 146.00, Stop loss at 143.00

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CAD/JPY signal by Capital Street FX

From GMT 10:00 19/01/2017
Till GMT 21:00 19/01/2017

Sell at 86.200
Take profit at 85.700
Stop loss at 86.400

Daily Report on January 20, 2017


European shares were mixed with the Stoxx Europe 600 Index poised for its worst week since early December, as investors remained cautious before Donald Trump delivers his inauguration speech and takes office as the 45th president of the United States. Meanwhile, U.S. stock futures were little changed Friday, keeping the equity market on track for weekly losses.


The dollar pared losses in European session after having lost ground in Asian trading hours. The decline came from U.S. Federal Reserve Chairwoman Janet Yellen’s remarks that she saw no reason to rapidly raise interest rates. In a speech at the Stanford Institute for Economic Policy Research, Yellen stated that she was not worried about the surge in inflation and headwinds from both domestic and international economic might restrain overall U.S. growth over the medium term.

Chinese stocks witnessed the biggest daily gain in more than two weeks following the report on the country’s gross domestic product data. China’s GDP was reported to have accelerated for the first time in two years in the final quarter of 2016, at the pace of 6.8%. This was above a 6.7 percent median estimate in a Bloomberg survey.

Elsewhere, the U.K. Office for National Statistics said on Friday said national retail sales fell at the fastest pace in almost five years in December. As rising prices caused consumers to buy less, the volume of goods sold in stores and online fell 1.9 percent from November. That was the biggest drop since April 2012 and far exceeded the modest decline predicted by economists.

Technicals
USDCAD

Fig: USDCAD H4 Technical Chart
USDCAD rebounded from the support at 1.32800 to breach the 38.2% Fibonacci retracement once again. The pair looks set to surpass a two-week high at 1.33528 logged yesterday. The resistance at major threshold 1.34000 is within the sight. The RSI has reached the overbought zone, suggesting an upcoming correction.
Trade suggestion
Buy Stop at 1.33600, Take profit at 1.34000, Stop loss at 1.33400

USDJPY

Fig: USDJPY H4 Technical Chart
Supported by the short-term 20-period moving average, the pair USDJPY pulled back to retest the resistance at 115.300. After a correction, the price is expected to break above this level and attempt another resistance at 116.300. Soaring RSI and ADX indexes confirm the uptrend.
Trade suggestion
Buy Stop at 115.500, Take profit at 116.300, Stop loss at 115.100

SILVER

Fig: SILVER H4 Technical Chart
Silver is facing the long-term MA50 at around 16.859 after the metal failed to break above the short-term MA20. In the event of continual decline, the commodity may fall to as low as the 61.8% retracement.
Trade suggestion
Sell Stop at 16.800, Take profit at 16.600, Stop loss at 16.900

DAX 30 Index

Fig: DAX 30 H4 Technical Chart
Germany’s Dax 30 index has been trading sideways since the start of this year. The index has been moving between the support at 11540.00 and the resistance at 11700.00. Currently, the stock benchmark has been supported by a couple of moving averages. In addition, RSI has pulled back from the 50 line, suggesting further advances as buyers are dominating in the market.
Trade suggestion
Buy Stop at 11650.00, Take profit at 11700.00, Stop loss at 11625.00

IBM Shares Plunge Despite Earnings and Revenues Above Forecasts

Shares of International Business Machines Corp (IBM) lost 2.4 percent at $162.80 after topping 52-week highs in late trading Thursday after the company reported its 19th straight quarter of declining revenue.

The New York–based enterprise technology company posted quarterly earnings and revenues above analyst estimates. Excluding items, IBM earned $5.01 per share on revenues of $21.77 billion, beating analysts’ average estimate of $4.88 per share on revenue of $21.64 billion in the fiscal fourth quarter.

However, compared to one year ago, IBM’s revenue fell 1.3 percent in the quarter ended Dec. 31 as income from newer areas such as cloud-based services and analytics failed to offset declines in IBM’s core business, such as hardware and services.

Still, for the coming year, IBM forecast $13.80 adjusted earnings per share, above the $13.48 per share expected by analysts.

Trade suggestion
Sell Stop at 162.80, Take profit 160.00, Stop loss at 164.00

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USD/CHF signal by Capital Street FX

From GMT 07:30 20/01/2017
Till GMT 21:00 20/01/2017

Sell at 1.00400
Take profit at 1.00000
Stop loss at 1.00600

Daily Report on January 23, 2017

The dollar slumped broadly on Monday after President Donald Trump’s protectionist tone overshadowed his sketchy details of tax policies and other stimulus that he had pledged to implement to boost the U.S. economy. The dollar index fell as much as 0.4% to hit an intra-day low at 100.21, on fading optimism over the U.S. economy spurred by the government cutting tax and increasing spending.
At a swearing-in ceremony for his top White House advisers on Sunday, Trump said that he planned talks soon with the leaders of Canada and Mexico to begin renegotiating the North American Free Trade Agreement (NAFTA). Trump seems to stick to his pledge during his presidential campaign that if elected he would renegotiate the NAFTA trade pact to provide more favorable terms to the United States. The 45th U.S. president also and vowed to put "America first", laying out two simple rules - buy American and hire American in his inaugural address last Friday.
With the Trump administration declaring its intention to withdraw from the Trans-Pacific Partnership (TPP), shares of Japan and Australia – two countries that have signed up for the agreement – fell. Japan's Nikkei dropped 1.1 percent while shares in Australia dropped 0.8 percent. However, other parts of Asia remained resilient. MSCI's broadest index of Asia-Pacific shares outside Japan rose 0.3 percent, with Taiwan shares leading the gains and coming just shy of 1-1/2-year highs.
On the contrary, European shares were expected to open lower and U.S. stock futures dipped 0.3 percent, erasing gains made on Friday. Britain's FTSE might witness a drop of 0.4 percent on the opening while Germany's DAX looked set to lose 0.3%.
Oil struggled for direction on Monday, weighed down by prospects of rising U.S. production. Statements over the weekend from OPEC and other producers that they have been successfully in implementing output cuts failed to offset data that showed U.S. energy companies added more rigs last week. Energy services firm Baker Hughes late Friday reported that Drillers added 29 rigs in the week to Jan. 20, bringing the total count up to 551, the most since November 2015.

Technicals
EURUSD

Fig: EURUSD H4 Technical Chart
Euro remained on an uptrend with steady support from two moving averages that are hanging below the price action. The pair EURUSD pulled back from the support at 1.07200 and is heading to the resistance at 1.08000. RSI is moving upwards, suggesting further advances.
Trade suggestion
Buy Stop at 1.07500, Take profit at 1.08000, Stop loss at 1.07250

COFFEE

Fig: Coffee H4 Technical Chart
Coffee is surging steadily, extending gains following a breakout from the 38.2% Fibonacci retracement. Although recent candles with long bodies show a strong uptrend, the market has entered the overbought zone, which signals a short-live advance. The resistance at 157.00 may witness a pullback.
Trade suggestion
Buy Stop at 154.10, Take profit at 157.00, Stop loss at 153.00

BRENT

Fig: H4 Technical Chart
Brent crude fell sharply after a short period of time moving sideways around 55.50 level. The commodity dropped below the 55.00 support and headed lower to another major stance at 54.00. Recent declines have brought the market into the bearish territory, as indicated by RSI index whi

USD/JPY signal by Capital Street FX
From GMT 07:00 23/01/2017
Till GMT 21:00 23/01/2017
Sell at 113.200
Take profit at 112.600
Stop loss at 113.500

Yahoo Posts Quarterly Earnings and Sales Above Market Forecasts

Shares of Yahoo Inc. rose as much as 2% late Monday before retreating to trade at $42.88 per share, up 1.13% in after-trading hours. The internet company reported fourth-quarter adjusted earnings and sales above expectations.

Yahoo said it earned $162 million or 17 cents a share in the three-month period ending December. The result contrasted with a loss of $4.43 billion, or $4.70 a share, in the year-ago quarter. Adjusted for one-time items, Yahoo recorded earnings of 25 cents a share in the quarter, up from 13 cents a share a year ago. Revenue also witnessed an increase compared to that of one year ago.

Yahoo’s revenue reached $1.47 billion, up from $1.27 billion reported a year earlier.

The internet advertising technology company also said the sale of its core business to Verizon will be delayed to close in the second quarter instead of in the first quarter “given work required to meet closing conditions”.

Trade suggestion
Buy Stop at 42.90, Take profit 44.50, Stop loss at 42.60
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AUD/NZD signal by Capital Street FX

From GMT 09:00 24/01/2017
Till GMT 21:00 24/01/2017

Sell at 1.04650
Take profit at 1.04300
Stop loss at 1.04800

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

Daily Report on January 24, 2017

The U.S. dollar extended its downward rally to a fourth day after U.S. Treasury Secretary Nominee Steven Mnuchin stated that a strong currency could hurt the economy. The dollar traded at the lowest level since early December, also weighed down by concerns about the impact of U.S President Donald Trump's protectionist trade stance.
The dollar index, which tracks the greenback against a basket of six major peers, slipped as much as 0.2 percent to 99.92 - seven-week lows in Asian trade on Tuesday. U.S. President Donald Trump had signed a memorandum directing the U.S. Trade Representative to withdraw the U.S. as a signatory to the Trans-Pacific Partnership accord with 11 other nations.
Meanwhile, Australia and New Zealand said on Tuesday they hoped to salvage the Trans-Pacific Partnership (TPP) by encouraging China and other Asian nations to join the trade pact after U.S. President Donald Trump kept his promise to withdraw his country from the trade deal.
The dollar's weakness gave an additional lift to other currencies including sterling. The pound was slightly lower on Tuesday after reaching six-week peaks a day earlier. Britain's Supreme Court is expected to rule that the government needs parliamentary approval to trigger formal talks about the country's exit from the European Union later on the day.
Elsewhere, the Nikkei-Markit flash manufacturing purchasing managers index (PMI) for Japan was reported to climb to 52.8 in January, up from 52.4 in December. This is the highest level seen since March 2014, indicating that activity levels improved during the month.

Technicals
NZDUSD

Fig: NZDUSD H1 Technical Chart
NZDUSD pulled back after having fallen below the support at 0.72200. The price action has crossed over the short-term MA20 but failed to sustain the bearish force. As can be observed from ADX chart, the index is heading downwards, suggesting a weakening downtrend. The resistance at 0.72600 is within the sight.
Trade suggestion
Buy Stop at 0.72300, Take profit at 0.72600, Stop loss at 0.72150

EURNZD

Fig: EURNZD H4 Technical Chart
EURNZD has been trading sideways around the support at 1.48500. The pair has also been depressed by two moving averages hanging above the price action. RSI index remained under the central line, indicating an overwhelming bullish force in the market. The pair may fall as low as 1.47700.
Trade suggestion
Sell Stop at 1.48400, Take profit at 1.47700, Stop loss at 1.48700

BRENT

Fig: BRENT H4 Technical Chart
Brent crude is retesting the highest level since last Friday at 55.79. The commodity price fell as low as 54.63 yesterday and was supported by the short-term MA20 to rebound higher. The RSI index is soaring to the overbought zone. Dominating buyers in the market may bring the price to as high as 56.60 – the level not seen in a week.
Trade suggestion
Buy Stop at 55.80, Take profit at 56.60, Stop loss at 55.40

FTSE 100 Index

Fig: FTSE 100 Index H4 Technical Chart
FTSE has been moving sideways to higher since the start of this week but in general the index has been under downward pressure created by the short-term MA20. The stock benchmark may fall below the 7260.00 level again as RSI one more time headed back to the bearish zone.
Trade suggestion
Sell Stop at 7260.00, Take profit at 7230.00, Stop loss at 7275.00
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Daily Report on January 25, 2017

Asian stocks joined a global equities rally after U.S. shares closed higher on Tuesday. At the close in NYSE, the Dow Jones Industrial Average added 0.57% and the NASDAQ Composite index gained 0.86%. Meanwhile, the S&P 500 index closed at a record, up 0.66%. The MSCI Asia Pacific Index headed toward the highest closing level since September as equity markets from Tokyo to Australia climbed.

A surge in commodities prices bolstered raw-materials companies. Copper prices rose steeply on Tuesday to an 18-month high, with the latest leg up fanned by global production problems at BHP Billiton Ltd. The world's largest miner by market value has been facing with a prolonged power blackout at a vast Australian mine and threatened strike action by workers in Chile which may trim its output at the Escondida mine.

As a result, the company lowered its full year guidance for this fiscal year given a sharp fall in first-half output. BHP forecast a supply of 1.62 million metric tons of the metal during the year through June, down 2% or 40,000 tons on a prior estimate.

In a report published on Wednesday, the RBA said that Australian trimmed mean CPI advanced to a seasonally adjusted 0.4%, from 0.4% in the preceding quarter. The figure fell short of consensus estimate calling for an increase of 0.5%.

Official data from Australian Bureau of Statistics also reflected slower-than-forecast inflation which was partly due to the weakness of China’s currency against the local dollar. Decreasing cost of imports like clothing only pushed quarterly headline CPI 0.5% higher compared a forecast of 0.7% by economists. Annual CPI rose 1.5%, remaining below the bottom of the central bank’s target range for a ninth straight quarter.

Oil edged lower on Wednesday as concern over an increase in U.S. inventories weighed on the market. Weekly inventory data from the American Petroleum Institute showed U.S. crude, gasoline and diesel stocks all rose last week. The Energy Information Administration will report its data later on the day.

Technicals
EURAUD

Fig: EURAUD H4 Technical Chart
EURAUD one more time had to give up its bull run at the resistance at 1.42400. The last pullback was also due to downward pressure created by the short-term MA20. This time, the price action has crossed over both long-term and short-term MAs. Moreover, the MA20 has converged with the MA50 from below, suggesting a reversal into an uptrend.
Trade suggestion
Buy Stop at 1.42400, take profit at 1.43000, stop loss at 1.42100

WTI

Fig: WTI H4 Technical Chart
WTI has been tracing a downtrend with the resistance formed by connecting lower highs recorded in the last 3 weeks. The price action has twisted with the moving averages, suggesting an unclear trend in the market. RSI has been swung around the 50 line, confirming indecisive moves. The support at 52.00 is within the sight.
Trade suggestion
Sell Stop at 52.80, take profit at 52.00, stop loss at 53.20

Natural Gas

Fig: Natural Gas H4 Technical Chart
Natural Gas has been trapped between a narrow trading range recently. The commodity has swung back and forth within a support at 3.260 and a resistance at 3.350. The RSI that has moved past the 50 line signals the price may test the upper range bounce again.
Trade suggestion
Buy Stop at 3.300, take profit at 3.350, stop loss at 2.275

Dow Jones

Fig: Dow Jones H4 Technical Chart
Dow Jones broken out of a slopping downtrend yesterday after having breached the resistance formed by lower highs. The sharp moves also brought the price action above two moving averages. Both RSI and ADX are heading upwards, suggesting a strong uptrend which may send the index to the 20,000.00 threshold.
Trade suggestion
Buy Stop at 19,950.00, take profit at 20,000.00, stop loss at 19,925.00

Slower-than-forecast Inflation Data Drags Australian Dollar Down

Australian dollar fell to the lowest level versus its American counterpart since last Friday after the Reserve Bank of Australia reported a weaker-than-expected data on change in the price of goods and services purchased by consumers in last quarter.

In a report published on Wednesday, the RBA said that Australian trimmed mean CPI advanced to a seasonally adjusted 0.4%, from 0.4% in the preceding quarter. The figure fell short of consensus estimate calling for an increase of 0.5%.

Official data from Australian Bureau of Statistics also reflected slower-than-forecast inflation which was partly due to the weakness of China’s currency against the local dollar. Decreasing cost of imports like clothing only pushed quarterly headline CPI 0.5% higher compared a forecast of 0.7% by economists.
Annual CPI rose 1.5%, remaining below the bottom of the central bank’s target range for a ninth straight quarter.

Trade suggestion
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