[phpBB Debug] PHP Notice: in file /inc_viewtopic.php on line 1494: Undefined variable: sMetaDescription
Forex Forum to Share, Discuss, Communicate and Trade Forex • Daily Market Research by Capital Street FX
Page 2 of 80

Re: Daily Market Research by Capital Street FX

PostPosted: Fri Sep 02, 2016 11:15 am
by CSFX.Support
Image
Daily Report on September 02, 2016

Asian markets were flat on Friday as investors are nervously waiting for the U.S Non-farm Payrolls report, which is due later in day. Overnight, U.S shares fluctuated in a wide range, but finished mostly higher, with advances in the tech sector outweighing disappointing factory activity data and lower oil prices. The Dow Jones rose 0.1 percent to 18,419.3, the S&P500 was almost unchanged at 2,170.86, and the Nasdaq100 added 0.27 percent, to finish at 5,227.21.

Crude prices extended their losses, heading for the worst weekly slump since mid-January. Declining on worries over a supply glut, WTI crude settled down 3.5 percent at $43.16 a barrel, while Brent settled 3.1 percent lower at $45.45. The end of the U.S. driving season and the prospects of a global glut due to the recent buildup in U.S inventories have exerted downward pressure on oil prices.

A report from the Institute of Supply Management reported that U.S. factory activity in August contracted for the first time since February. The drop in new orders and production dragged the index down by 3.2 percentage points to a reading of 49.4.

However, solid performance in the labor market which has spurred hawkish comments from some Fed officials in recent weeks, probably could still act as a valid reason for a rate hike this month. Cleveland Fed President Loretta Mester on Thursday said that the U.S. labor market is at full strength and the Federal Reserve needs to embark on a path of gradual interest rate increases.



Technical

EURAUD



Fig: EURAUD H4 Technical Chart

Failing to breaking out the 38.2% retracement at 1.48779, EURAUD is moving in sideways fashion, below this level. Recently, the pair has been locked between the 50-period moving average and the resistance at 1.48500. Both buyers and sellers are not gathering enough momentum to define a clear direction within the market. As the price is heading towards a test of the MA20, the pair is expected to witness a bounce back.

Trade suggestion

Buy Limit at 1.48000, Take profit 1.48500, Stop loss at 1.47700.



GBPCAD



Fig: GBPCAD D1 Technical Chart

GBPCAD bounced back from the low at 1.66068 and is still retaining the bullish momentum to jump higher. The pair is highly likely to retest the high at 1.75441 before attempting a breach of the near term resistance at 1.76215 to complete the double-bottom pattern. The prices have moved past both the long-term and short-term MAs, while the RSI (14) has only surged to 60.91. There is still room for further advances.

Trade suggestion

Buy Stop at 1.73900, Take profit at 1.75441, Stop loss at 1.73500



USDCHF



Fig: USDCHF H4 Technical Chart

USDCHF peeked beyond the 0.98420 handle yesterday but could not sustain the up-move and had to fall back to trade under this level. The pair has turned its past resistance (purple line) into a new support zone and is crawling along this boundary. The pair is anticipated to inch up further as the market has fallen into the oversold zone and is signaling a bounce back.

Trade suggestion

Buy Stop at 0.98050, Take profit 0.98420, Stop loss at 0.97815



WTI



Fig: WTI D1 Technical Chart

The slump in the WTI crude prices has not yet come to an end as the convergence between the two MAs is signaling further declines in the commodity. The RSI (14) has dipped to 40.39, consolidating the downtrend. A short-term target that the market could aim for would be the 38.2% Fibonacci retracement at around 41.83.

Trade suggestion

Sell Stop at 43.30, Take profit at 42.50, Stop loss at 43.85



SUGAR



Fig: SUGAR H4 Technical Chart

Sugar pulled back after nose-diving steeply yesterday. The commodity easily broke through both the short-term MA and the long-term MA from above and is officially under the downward pressure created by these two MAs. The bear is prevailing in the market and has pushed the RSI index lower to 35.32.

Trade suggestion

Sell Stop at 19.53, Take profit at 19.15, Stop loss at 19.90



EUROSTOXX50



Fig: EURO50 H4 Technical Chart

Since the early part of this week, the EuroStoxx50 index has surpassed the 3015.00 resistance – the level had restrained the index’s rally for 2 weeks before the breakout. The Euro50 is trading in a new trading channel between 3015.00 – the old resistance which becomes the new support, and the upper boundary at 3049.45. With the support from two MAs placed below the price action, and a higher-than-average RSI, the index is forecast to attempt a retest of yesterday’s high at 3052.70.

Trade suggestion

Buy Stop at 3036.50, Take profit at 3052.70, Stop loss at 3015.00

USDCAD Market Outlook by Capital Street FX

PostPosted: Fri Sep 02, 2016 1:01 pm
by CSFX.Support
Image

Caution Holds USDCAD Around Key Level 1.31000 – How To Trade The USDCAD From Here?

USDCAD has been nearly flat over the past three days, against the backdrop of all major markets bracing for the monthly jobs report which is due for release later on Friday. Disappointing factory activity data from the U.S yesterday, helped offset the effect of the sharp decline in crude prices on the CAD, easing the divergence between two currencies which has pushed the pair up nearly 3 percent in the past couple of weeks.

The Canadian dollar has been weakened recently due to renewed concerns over the global oil surplus, as well as a train of negative economic data from the Canadian economy.

Regardless of recent positive signals showing the good-will of the world’s major producers and exporters to cooperate and stabilize the oil market, the fear over U.S producers coming back to benefit from higher prices has cast downward pressure on oil prices. U.K benchmark Brent crude fell back to below $46 per barrel while U.S WTI crude prices also slumped to below $43 per barrel.

The U.S. Energy Information Administration on Wednesday indicated that domestic crude inventories rose by 2.3 million barrels in the week ended Aug. 26, while economists had forecast the report to show an increase of only 1.1 million barrels. Last week’s buildup has been the fifth jump in the last 6 weeks. The rise in inventories, after a period of decreases, is indicating that more U.S supply is pouring into an already imbalanced market

In an interview with Bloomberg on Thursday, Russian President Vladimir Putin stated that he expected that an output freeze deal could be reached at an informal meeting later this month in Algeria. The president stated that “it was the right decision for world energy.” In spite of calling on key oil-producing countries to cap output together, Putin argued that Iran could be granted an exemption and any agreement could be reached with the Saudi side, complimenting Saudi Arabia’s Deputy Crown Prince, Mohammed bin Salman, as “a very reliable partner”.

On Friday, Saudi Arabia’s Foreign Minister Adel al-Jubeir said that he was optimistic about producers moving to a common position on oil production. “We are beginning to have a meeting of the minds but it is a work in progress and we’ll see what happens in the meeting in Algeria. And I’m hopefully optimistic,” he told reporters.

Members of the Organization of the Petroleum Exporting Countries and other non-OPEC oil exporters are due to meet on the sidelines of the International Energy Forum late in September, and are expected to set a new celling on oil output.

In terms of economic data which is the second factor going against the CAD, Canadian Trade Balance is the latest data release being watched. It is set for release at the opening of the U.S session, and is forecast to show a deficit of 3.2 million dollars, while Canadian Labor Productivity for second quarter probably rose 0.2% compared to the June period. Recent data releases have painted a gloomy picture regarding the prospects of the commodity-based economy. Recent reports from Statistics Canada indicated that retail sales fell 0.1 percent in June while Core retail sales that strip out automobiles reported an even worse performance – reporting a 0.8 percent contraction.

The drop in energy prices caused prices to fall by 0.2 percent in July compared to June. According to Statistics Canada, domestic annual inflation slowed to 1.3 percent last month, led by a 14% slump in gasoline prices in July from a year ago.

On the other hand, the U.S dollar looks set to benefit from the second rate hike since December 2015 despite much-worse-than-expected manufacturing data published on Thursday. A report from the Institute of Supply Management reported that U.S. factory activity in August contracted for the first time since February. The drop in new orders and production dragged the index down by 3.2 percentage points to a reading of 49.4.

However, solid performance in the labor market which has spurred hawkish comments from some Fed officials in recent weeks, probably could still act as a valid reason for a rate hike this month. Therefore, the NFP report out later today is being closely watched and is being considered a key factor in helping the market assess the possibility of a rate increase at the Fed’s late-September meeting.

As can be seen from the stochastic chart, the market has been remained in the overbought zone for almost a week and the bull seems to be getting exhausted as it has not been able to support prices tick higher for the last three days. Despite having been supported by the two MAs placed below the price action, cautious sentiment has pinned the price around the 1.31000 psychological level. We may need a real push from the fundamental side to define a clear direction for the market.

Trade suggestion

Sell Stop at 1.31000, take profit at 1.30000, stop loss at 1.315000

Daily Report by Capital Street FX

PostPosted: Fri Sep 02, 2016 5:49 pm
by CSFX.Support
Image
Daily Report on September 02, 2016

Asian markets were flat on Friday as investors are nervously waiting for the U.S Non-farm Payrolls report, which is due later in day. Overnight, U.S shares fluctuated in a wide range, but finished mostly higher, with advances in the tech sector outweighing disappointing factory activity data and lower oil prices. The Dow Jones rose 0.1 percent to 18,419.3, the S&P500 was almost unchanged at 2,170.86, and the Nasdaq100 added 0.27 percent, to finish at 5,227.21.

Crude prices extended their losses, heading for the worst weekly slump since mid-January. Declining on worries over a supply glut, WTI crude settled down 3.5 percent at $43.16 a barrel, while Brent settled 3.1 percent lower at $45.45. The end of the U.S. driving season and the prospects of a global glut due to the recent buildup in U.S inventories have exerted downward pressure on oil prices.

A report from the Institute of Supply Management reported that U.S. factory activity in August contracted for the first time since February. The drop in new orders and production dragged the index down by 3.2 percentage points to a reading of 49.4.

However, solid performance in the labor market which has spurred hawkish comments from some Fed officials in recent weeks, probably could still act as a valid reason for a rate hike this month. Cleveland Fed President Loretta Mester on Thursday said that the U.S. labor market is at full strength and the Federal Reserve needs to embark on a path of gradual interest rate increases.

Technical

EURAUD

Failing to breaking out the 38.2% retracement at 1.48779, EURAUD is moving in sideways fashion, below this level. Recently, the pair has been locked between the 50-period moving average and the resistance at 1.48500. Both buyers and sellers are not gathering enough momentum to define a clear direction within the market. As the price is heading towards a test of the MA20, the pair is expected to witness a bounce back.


Trade suggestion

Buy Limit at 1.48000, Take profit 1.48500, Stop loss at 1.47700.

GBPCAD

GBPCAD bounced back from the low at 1.66068 and is still retaining the bullish momentum to jump higher. The pair is highly likely to retest the high at 1.75441 before attempting a breach of the near term resistance at 1.76215 to complete the double-bottom pattern. The prices have moved past both the long-term and short-term MAs, while the RSI (14) has only surged to 60.91. There is still room for further advances.


Trade suggestion

Buy Stop at 1.73900, Take profit at 1.75441, Stop loss at 1.73500

USDCHF

USDCHF peeked beyond the 0.98420 handle yesterday but could not sustain the up-move and had to fall back to trade under this level. The pair has turned its past resistance (purple line) into a new support zone and is crawling along this boundary. The pair is anticipated to inch up further as the market has fallen into the oversold zone and is signaling a bounce back.


Trade suggestion

Buy Stop at 0.98050, Take profit 0.98420, Stop loss at 0.97815

WTI

The slump in the WTI crude prices has not yet come to an end as the convergence between the two MAs is signaling further declines in the commodity. The RSI (14) has dipped to 40.39, consolidating the downtrend. A short-term target that the market could aim for would be the 38.2% Fibonacci retracement at around 41.83.


Trade suggestion

Sell Stop at 43.30, Take profit at 42.50, Stop loss at 43.85

SUGAR

Sugar pulled back after nose-diving steeply yesterday. The commodity easily broke through both the short-term MA and the long-term MA from above and is officially under the downward pressure created by these two MAs. The bear is prevailing in the market and has pushed the RSI index lower to 35.32.


Trade suggestion

Sell Stop at 19.53, Take profit at 19.15, Stop loss at 19.90

EUROSTOXX50

Since the early part of this week, the EuroStoxx50 index has surpassed the 3015.00 resistance the level had restrained the indexs rally for 2 weeks before the breakout. The Euro50 is trading in a new trading channel between 3015.00 the old resistance which becomes the new support, and the upper boundary at 3049.45. With the support from two MAs placed below the price action, and a higher-than-average RSI, the index is forecast to attempt a retest of yesterdays high at 3052.70.


Trade suggestion

Buy Stop at 3036.50, Take profit at 3052.70, Stop loss at 3015.00

USDCAD Market Outlook by Capital Street FX

PostPosted: Fri Sep 02, 2016 5:51 pm
by CSFX.Support
Image

Caution Holds USDCAD Around Key Level 1.31000 – How To Trade The USDCAD From Here?

USDCAD has been nearly flat over the past three days, against the backdrop of all major markets bracing for the monthly jobs report which is due for release later on Friday. Disappointing factory activity data from the U.S yesterday, helped offset the effect of the sharp decline in crude prices on the CAD, easing the divergence between two currencies which has pushed the pair up nearly 3 percent in the past couple of weeks.

The Canadian dollar has been weakened recently due to renewed concerns over the global oil surplus, as well as a train of negative economic data from the Canadian economy.

Regardless of recent positive signals showing the good-will of the world’s major producers and exporters to cooperate and stabilize the oil market, the fear over U.S producers coming back to benefit from higher prices has cast downward pressure on oil prices. U.K benchmark Brent crude fell back to below $46 per barrel while U.S WTI crude prices also slumped to below $43 per barrel.

The U.S. Energy Information Administration on Wednesday indicated that domestic crude inventories rose by 2.3 million barrels in the week ended Aug. 26, while economists had forecast the report to show an increase of only 1.1 million barrels. Last week’s buildup has been the fifth jump in the last 6 weeks. The rise in inventories, after a period of decreases, is indicating that more U.S supply is pouring into an already imbalanced market

In an interview with Bloomberg on Thursday, Russian President Vladimir Putin stated that he expected that an output freeze deal could be reached at an informal meeting later this month in Algeria. The president stated that “it was the right decision for world energy.” In spite of calling on key oil-producing countries to cap output together, Putin argued that Iran could be granted an exemption and any agreement could be reached with the Saudi side, complimenting Saudi Arabia’s Deputy Crown Prince, Mohammed bin Salman, as “a very reliable partner”.

On Friday, Saudi Arabia’s Foreign Minister Adel al-Jubeir said that he was optimistic about producers moving to a common position on oil production. “We are beginning to have a meeting of the minds but it is a work in progress and we’ll see what happens in the meeting in Algeria. And I’m hopefully optimistic,” he told reporters.

Members of the Organization of the Petroleum Exporting Countries and other non-OPEC oil exporters are due to meet on the sidelines of the International Energy Forum late in September, and are expected to set a new celling on oil output.

In terms of economic data which is the second factor going against the CAD, Canadian Trade Balance is the latest data release being watched. It is set for release at the opening of the U.S session, and is forecast to show a deficit of 3.2 million dollars, while Canadian Labor Productivity for second quarter probably rose 0.2% compared to the June period. Recent data releases have painted a gloomy picture regarding the prospects of the commodity-based economy. Recent reports from Statistics Canada indicated that retail sales fell 0.1 percent in June while Core retail sales that strip out automobiles reported an even worse performance – reporting a 0.8 percent contraction.

The drop in energy prices caused prices to fall by 0.2 percent in July compared to June. According to Statistics Canada, domestic annual inflation slowed to 1.3 percent last month, led by a 14% slump in gasoline prices in July from a year ago.

On the other hand, the U.S dollar looks set to benefit from the second rate hike since December 2015 despite much-worse-than-expected manufacturing data published on Thursday. A report from the Institute of Supply Management reported that U.S. factory activity in August contracted for the first time since February. The drop in new orders and production dragged the index down by 3.2 percentage points to a reading of 49.4.

However, solid performance in the labor market which has spurred hawkish comments from some Fed officials in recent weeks, probably could still act as a valid reason for a rate hike this month. Therefore, the NFP report out later today is being closely watched and is being considered a key factor in helping the market assess the possibility of a rate increase at the Fed’s late-September meeting.



As can be seen from the stochastic chart, the market has been remained in the overbought zone for almost a week and the bull seems to be getting exhausted as it has not been able to support prices tick higher for the last three days. Despite having been supported by the two MAs placed below the price action, cautious sentiment has pinned the price around the 1.31000 psychological level. We may need a real push from the fundamental side to define a clear direction for the market.

Trade suggestion

Sell Stop at 1.31000, take profit at 1.30000, stop loss at 1.315000

Gold Signal by Capital Street FX

PostPosted: Fri Sep 02, 2016 5:54 pm
by CSFX.Support


Gold Gains on Smaller-Than-Expected NFP – But Be Careful, September Hike Has Not Been Off The Table


Gold traded higher on Friday, supported by a weakening U.S dollar. Following a 255,000 gain in July that bulldozed all forecasts, the U.S Labor Department slightly disappointed the financial markets with only 151,000 rise in the headline non-farm payrolls number for August. The result missed analysts’ estimate of an 180,000 jobs increase last month.

Average hourly earnings rose by 0.1% to $25.73, falling shy of expectations, while the participation rate and unemployment rate were unchanged at 62.8 percent and 4.9 percent, respectively. Regardless of a weaker-than-expected monthly jobs report, the possibility of an interest rate hike later this month has not been completely ruled out as August payrolls are usually affected by seasonal factors in terms of vacation period and school calendars.

Given the labor market near full employment, Yellen has said the economy needs to create just under 100,000 jobs a month to keep up with population growth. According to CME Group’s Fed Watch tool, the odds of a Fed move in September lowered to 21% after the jobs report, while the possibility of a change in December posted at 43.6 percent.

Trade suggestion

Sell Limit at 1325.00, Take profit at 1320.00, Stop loss at 1327.00

NZD/USD signal by Capital Street FX

PostPosted: Fri Sep 02, 2016 5:55 pm
by CSFX.Support
NZD/USD

From GMT 15:30 01/09/2016
Till GMT 21:00 02/09/2016

Buy at 0.73300
Take profit at 0.73550
Stop loss at 0.73175

Daily Report on September 05, 2016 by Capital Street FX

PostPosted: Mon Sep 05, 2016 6:57 am
by CSFX.Support
Image

Daily Report on September 05, 2016

Asian stocks took their cue from the rally in U.S shares on Friday, after weaker-than-expected U.S. jobs reduced the chances of the Federal Reserve raising interest rates this month. MSCI's broadest index of Asia-Pacific shares outside Japan added 1.3% in early trade. Japan's Nikkei stock index surged 1 percent to three-month highs while Hong Kong’s Hang Seng Index climbed to its highest in a year.

The Caixin survey published by Markit on Monday reported that China’s services purchasing managers' index (PMI) picked up to 52.1 in August on a seasonally adjusted basis, from 51.7 in July. Growth in the service sector was powered by modest gains in new orders and a stable labor market. Despite being in line with expectations, the rate of expansion remained well below the average and was considered as “relatively underwhelming".

Speaking at the Kyodo News event, in Tokyo on Monday, Bank of Japan Governor Haruhiko Kuroda stated that “there is ample room for further monetary easing ... and other new ideas should not be off the table,". Further cuts in interest rates and increased purchases of assets are expected to be made full use of by the BOJ to achieve the policy mandate of bringing inflation closer towards the target of 2%, at the earliest possible.

Crude prices continued to slump in the Asian trading session as concerns over a supply glut are mounting after news from a Yemeni industry official said the country’s 150,000 barrels-per-day Aden oil refinery resumed operations on Sunday. The refinery had previously been shut down for more than a year as the conflict in the country worsened.

With the US Markets closed in observance of the Labour Day holiday in the US, the markets are expected to be relatively quiet and thin today.



Technicals

EURUSD
EURUSD seemingly could not stand the heat of the 50-period moving average and has been moving lower after coming up against this moving resistance. The short-term MA has just crossed over the long-term MA from above, signaling a reversal into a downtrend. In the stochastic chart, the %K line has pulled back from the overbought area and is about to cross the %D line from above.

Trade suggestion

Sell Stop at 1.11685, Take profit at 1.11300, Stop loss at 1.11920



NZDUSD
NZDUSD is on course to retest the major resistance at 0.73420 after peeking through this level on Friday. The pair could not retain the bullish momentum to surge above this handle and pulled back to hit the support at 0.72639. Having been supported by the two moving averages placed below the price action, the New Zealand dollar has been pushing to get into rally mode. Nevertheless, the price is expected to give up the gains once more, and retreat from the resistance.

Trade suggestion

Sell Limit at 0.73420, Take profit at 0.72940, Stop loss at 0.73600



AUDNZD
AUDNZD resumed its slide after some corrective moves from the one-month low at 1.03140. The pair fell back from the resistance at 1.03950 – the level that forced the price to reverse lower on Thursday. The market has remained in a bearish setup for almost a month and is expected to extend the downtrend as the RSI index is still pointing downwards, and is still below the 50 line.

Trade suggestion

Sell Stop at 1.03530, Take profit at 1.03140, Stop loss at 1.03950



SILVER
Silver has been skidding since the market open on Monday following a sharp surge that boosted the grey metal to surpass the 23.6% retracement at 19.369. Ongoing losses are a result of a correction that may last sometime, as can be seen from the indicators. The market has entered the overbought zone. With the MA20 crossing the MA50 from below, Silver could reattempt a surge after a test of the support at 19.200

Trade suggestion

Buy Limit at 19.200, Take profit at 19.430, Stop loss at 19.040



BRENT
Brent crude descended from the 23.6% Fibonacci retracement level, after the price came up against two solid hurdles at the same time. Coupled with the resistance at the 23.6% level, the MA20 is another zone of resistance that restrained the price action and sent the market back down. The bear is overwhelming in the market currrently, which is further consolidated by two MAs placed above the price action.

Trade suggestion

Sell Stop at 46.40, Take profit at 45.50, Stop loss at 47.00



FTSE
FTSE100 index victoriously broke out of the descending price channel on Friday, and is comfortably trading around two-week highs at 6899.90. While the RSI index is moving near the overbought zone, the short-term MA is much likely to penetrate the long-term MA from below. The index is anticipated to advance higher towards the record high at 6959.21, with both MA's now placed below the price action.

Trade suggestion

Buy Stop at 6900.00, Take profit at 6959.21, Stop loss at 6865.00

Natural gas Market Outlook by Capital Street FX

PostPosted: Mon Sep 05, 2016 9:29 am
by CSFX.Support
Image

Natural Gas Weighed Down By Stocks – Is This A Good Time To Pick A Bottom?

Natural gas prices have been in a down-move since last Tuesday and are currently suffering a fourth session of losses in the last five trading days. August witnessed prices dropping by more than 3%, and the market opened September with large losses on Thursday after data from the U.S. Energy Information Administration showed a larger-than-expected storage addition during the week through August 26th. However, the natural gas market’s surplus is expected to be nearing its end, as cheap prices are discouraging production but stoking consumption.

Reports from the U.S EIA showed that natural gas stockpiles rose by 51 billion cubic feet (bcf) for the week ended August 26. The figure was far beyond expectations of a 43 bcf increase, taking total stocks to 3.401 trillion cubic feet, up 238 bcf from a year ago and 334 bcf above the five-year average.

High temperatures have been the main driver for the rally in natural gas this summer. Consistently intense heat powered consumption of air conditioning, and raised demand for electricity. Although weather forecasts are still reporting hotter-than-normal weather across the eastern half of the country for the next two weeks, September has stepped in with less extreme heat and cooled down the usage of air conditioners.

Additionally, according to market sources, wind-power generation also increased enough during the week ended August 26th to have caused a reduction in power plants’ gas consumption by 1.6 bcf a day. These two factors could have helped cause the larger-than-expected storage number.

Nonetheless, the current surplus could be erased in upcoming months as onshore natural-gas production has been falling in June for the fourth consecutive month. According to Bakes Hughes, the number of rotary rigs drilling for gas in North America hit an all-time low at 81 last week.

Along with the reduction in drilling rigs, the cheapness of gas has nudged U.S power producers to replace coal with natural gas. Last year, the U.S electricity sector used 1.4 times as much coal by energy value as compared to natural gas. This is a huge contraction compared to a ratio of 4.5 times 20 years ago. The EIA had forecast in March that gas use would overtake coal for the first time ever, in 2016.

As financial markets in Canada and the U.S. are shut on Monday for the Labour Day holiday, the natural gas market is expected to be relatively quiet and thin today.

Natural gas prices created a wide gap down on the market open and also broke below the ascending trend line which connects the higher lows for the period August 2nd to September 2nd. Lower lows being formed by the recent price action (over the last 1 week) and lower lows being created in the indicator window suggest that the bear is getting stronger. The 20-period MA has converged with the 50-period MA, signaling further declines.

Trade suggestion

Sell Stop at 2.750, Take profit at 2.730, Stop loss at 2.765

Oil Trade Idea by Capital Street FX

PostPosted: Mon Sep 05, 2016 7:06 pm
by CSFX.Support
Oil Pares Early Gains As Magnified Speculation Dissipates

The crude oil market was in a state of overblown volatility in thin liquidity on Monday, amidst rising speculation that the world’s two largest oil producers would agree on an output cap deal at the G-20 summit in China, after Reuters had reported that Saudi Arabia’s Energy Minister Khalid al-Falih was set to make a “significant announcement” at a news conference at the summit being held in Hangzhou.

Nonetheless, the outcome of Al-Falih’s speech disappointed markets as what was delivered failed to meet market expectations. According to reports, Al-Falih and his Russian counterpart Alexander Novak will set up a working group to monitor the oil market and come up with recommendations to promote market stability. Besides the meeting in Algeria in late September, the two leaders will also meet in Vienna in November to discuss how to cooperate under the new agreement.

Oil prices immediately trimmed sharp gains made earlier, falling off from the nearly one week high at 46.51 per barrel to as low as 44.74 per barrel after the statement.

Trade suggestion

Sell Stop at 44.90, Take profit at 44.50, Stop loss at 45.20


#CapitalStreetFX #TradeIdea

Daily Report on September 06, 2016 by Capital Street FX

PostPosted: Tue Sep 06, 2016 11:03 am
by CSFX.Support
Image
Daily Report on September 06, 2016



Crude prices held onto most of their gains from yesterday in the Asian trading session on Tuesday, as top producers Russia and Saudi Arabia, despite failing to announce concrete steps to limit output, agreed to cooperate on stabilizing the oil market. Russian Energy Minister Alexander Novak and his Saudi counterpart have moved toward a strategic energy partnership after a meeting at the G-20 summit in China.

Saudi energy minister Khalid al-Falih stated that he was optimistic about cooperation with other producers ahead of a meeting this month in Algiers, adding that freezing production was not the only solution to a supply glut. The oil price advance led energy stocks higher, which in turn supported Asian shares edge up on Tuesday.

A report by the British Retail Consortium (BRC) and KPMG published overnight showed that UK retail sales decreased 0.9pc in August compared to the same month last year on a like-for-like basis. The weakest performance since September 2014 was attributed to the warm weather that retrained clothing sales, and the Olympics that distracted shoppers by keeping them indoors.

Having already pulled the trigger on policy easing in May and August, the Reserve Bank of Australia (RBA) held its interest rate unchanged as expected at Tuesday's meeting. The central bank stated that it will let the stimulus measures already introduced, to percolate through the economy before deciding if yet more stimulus is needed.



Technicals

EURAUD



Fig: EURAUD H4 Technical Chart

EURAUD has fallen off the 23.6% retracement level at 1.46967 and continues to head downwards with the pressure from the two MAs placed above the price action. The MA20 has crossed over the MA50 from above, not to mention that the ADX index has soared higher. The pair is anticipated to dip lower to test the support at 1.45450.

Trade suggestion

Sell Stop at 1.46015, take profit at 1.45450, stop loss at 1.46615



USDCAD



Fig: USDCAD H4 Technical Chart

USDCAD has been on a decline since it reversed from a nearly one-month high at 1.31471 reached on Friday. The short-term MA has penetrated the long-term MA from above, signaling further slump in the market. Additionally, since the ADX has surged higher to 53.19, with a big divergence between the +DI and –DI line, the bears are expected to gain momentum and push the pair lower. However, the USDCAD is up against a strong support zone, which is an ascending trendline formed during the period from August 18 to date. To extend the down move, USDCAD needs to make a breakout through this support first.

Trade suggestion

Sell Stop at 1.29000, take profit at 1.28570, stop loss at 1.29500



USDCHF



Fig: USDCHF H4 Technical Chart

USDCHF has been moving sideways around the key 0.98000 level for the last three trading days. The pair initially breached the upper boundary of the ascending trading channel and broke out of it. But has now fallen back into the trading channel. The market has been locked under the MA20 for a while but has not been able to cross below the MA50. As the %K line is pointing down and the RSI has dipped below 50, the pair is forecast to fall further to the support at 0.97500.

Trade suggestion

Sell Stop at 0.97880, take profit at 0.97500, stop loss at 0.98200



GOLD



Fig: GOLD H4 Technical Chart

Gold has been on a rise since the beginning of September but the rally is being held back within the descending channel. While the bull is overwhelming in the market and the upcoming convergence of the two MAs placed below the price action looks likely, a breakout though the channel resistance is anticipated. However, in case the precious metal can breach this handle, the major resistance at 1330.00 will be another solid stance for gold to get through.

Trade suggestion

Buy Stop at 1328.50, take profit at 1333.20, stop loss at 1325.00



BRENT



Fig: Brent H1 Technical Chart

Brent witnessed a spike yesterday which took the commodity beyond the 23.6% retracement level to retest a nearly one-week high at 49.37. Brent pared most of its gains afterwards but failed to break below the MA20 and is currently trading above this support. The ongoing up-wave has created a bullish impulse in the market, with other indicators currently supporting the up move.

Trade suggestion

Buy Stop at 47.80, take profit at 48.45, stop loss at 47.40



DAX



Fig: DAX H4 Technical Chart

Germany's DAX30 index has been moving in an ascending triangle pattern. Higher lows have been continuously created but the index has been restrained from forming new highs due to the resistance at 10740.00. DAX seems to be trading with a sideways to downwards bias currently. However, any down move is expected to subside and the market may bounce back once it hits the MA20 and may go on to retest the 10740.00 resistance level.

Trade suggestion

Buy Limit at 10636.00, take profit at 10740.00, stop loss at 10600.00