Daily Market Analysis by CapitalStreetFX

This is a discussion on Daily Market Analysis by CapitalStreetFX within the Daily Analysis forums, part of the Commercial category; The AUD/USD pair advanced to a daily high of 0.7391 during the past Asian session, following the release of Australian ...

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Old Aug 7, 2015, 11:08am   #1
Joined Aug 2015
Daily Market Analysis by CapitalStreetFX

The AUD/USD pair advanced to a daily high of 0.7391 during the past Asian session, following the release of Australian employment figures, showing that the country managed to create 38.5K new jobs against expectations of 15K, although the Aussie quickly shed its gains, as at the same time, the unemployment rate sore to 6.3%.

Also, failure around the 0.7400 level and the fact that the pair posted a lower low daily basis, suggest selling interest is building up after the latest RBA shock.

Now consolidating above the 0.7300 level, the 1 hour chart presents a mild positive tone, as the price holds a few pips above its 20 SMA, whilst the technical indicators are aiming higher, but in neutral territory.

Click the image to open in full size.

In the 4 hours chart, the price is hovering around a mild bullish 20 SMA, the Momentum indicator heads sharply lower below the 100 level and the RSI lacks strength around 52, giving little room for a stronger recovery during the upcoming session.
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Old Aug 13, 2015, 8:47am   #2
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Dollar Plunges As China Devalues Yuan For Second Day

CapitalStreetFX started this thread China devalued the Yuan for second day in-a-row, sending the American dollar sharply lower across the board, whilst stocks nose-dived and commodities also fell. Oil and Gold however, bounced, this last due to its safe-haven status.

In the EU Industrial Production in June resulted in a 0.4% drop monthly basis, whilst the year-on-year reading gained 1.2% against expectations of a 1.5% advance.

In the US, the number of job openings reached 5.2 million in June, according to the US Bureau of Labor Statistics, slightly below marketís expectations, whilst FEDís Dudley said that the hopes they can lift rates soon, but avoid to comment on a certain time.

The EUR/USD surged to a fresh 5-weeh high of 1.1213 in the American afternoon, but the pair retreated some from the mentioned daily high, ending the day, however, with strong gains, and despite being extremely overbought in the short term, the 1 hour chart is far from suggesting a reversal, as the price remains well above a bullish 20 SMA, whilst the technical indicators have barely corrected extreme readings and the RSI indicator is now turning flat around 69.

Click the image to open in full size.

In the 4 hours chart the technical indicators are also showing signs of upward exhaustion in extreme overbought territory, not yet suggesting a downward correction move.

As long as the price holds above 1.1120, the risk will remain towards the upside, with scope to extend its gains on a break above 1.1240, a strong static resistance level.
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Old Aug 18, 2015, 8:13am   #3
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US, UK Stocks Rise Ahead of FOMC Minutes, CPI News

CapitalStreetFX started this thread Wall Street closed in the green yesterday, with the DJIA up 67 points of 0.39%, ending the day at 17,545.18, and the housing sector leading the advance. The index dropped at the opening weighed by a weaker-than-expected New York manufacturing index that fell to levels not seen since 2009. But it slowly came back and extended its advance above a daily descendant trend line coming from July 20th high at 18,136.

The daily chart shows that the index stalled around its 20 SMA, whilst the technical indicators aim higher, but are still below their mid-lines, providing little support to a new leg higher.

Click the image to open in full size.

In the short term, the 20 SMA heads higher currently around 17,455, the Momentum indicator heads lower, but remains above 100, while the RSI indicator holds flat around 58, also lacking enough upward potential to confirm further advances for the Tuesday.
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Old Aug 19, 2015, 8:24am   #4
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CapitalStreetFX started this thread The GBP/CAD surged to a daily high of 2.0586. But the cross gave back most of its intraday gains, as surging oil prices boosted a recovery in the Canadian dollar by the end of the day.

The pair however, closed the day in the green and above its 20 DMA, maintaining its latest positive tone.

Click the image to open in full size.

Short term, the 1 hour chart shows that the price is below its 20 SMA, whilst the technical indicators have retreated from overbought territory and aim lower around their mid-lines, suggesting the decline may extend in the short term.

In the 4 hours chart, the price is hovering around a mild bullish 20 SMA, whilst the technical indicators also head lower around their mid-lines, supporting the shorter term view, particularly on a break below 2.0410, the immediate support.
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Old Aug 20, 2015, 7:49am   #5
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Cable Faces Tough Resistance at 1.5700

CapitalStreetFX started this thread The GBP/USD pair was unable to regain the 1.5700 level on Wednesday, having spent most of the first half of the day consolidating below it.

With no fundamental releases in the UK, the pair fell down to 1.5634 early in the US session, from where it jumped up to the 1.5700 figure following FOMCís Minutes.

The pair trades a few pips below it after the dust settled, but maintains a generally positive technical tone, as the 1 hour chart shows that the retracement held above a mild bullish 20 SMA, whilst the technical indicators remain above their mid-lines, albeit lacking directional strength.

Click the image to open in full size.

In the 4 hours chart, the price also recovered from its 20 SMA that presents a firmer bullish tone, whilst the technical indicators have bounced from their mid-lines and head north, supporting the bullish tone and in line with marketsí sentiment.

Above 1.5700, the pair will meet some intraday resistance at 1.5735, July high, but a break above it should confirm the upward continuation in the midterm.
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Old Aug 21, 2015, 8:42am   #6
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CapitalStreetFX started this thread Gold prices soared on the back of a risk aversion environment, with spot gold reaching a fresh 5-week high of 1,153.99 a troy ounce.

The bright metal demand was boosted by the continued decline in Chinese stocks, spurring concerns that the PBoC will intervene again the Yuan in an attempt to cold down financial markets.

Additionally, the commodity latest decline was related to the possibility that the FED would raise rates in September, but ever since the latest Minutes were dovish, gold buyers are now betting a rate hike will be delayed towards December.

Technically, the gold is extremely overbought according to the 4 hours chart, after advancing almost $35 in the last two days.

Click the image to open in full size.

In the same chart, the technical indicators are partially losing their upward strength, but remain in extreme levels, while the 20 SMA heads sharply higher, now around 1,128.05.

On daily basis, the technical picture is strongly bullish, with the indicators heading north well above their mid-lines, and the price approaching a critical dynamic resistance, the 100 DMA at 1,161.45.
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Old Aug 21, 2015, 8:44am   #7
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CapitalStreetFX started this thread Gold prices soared on the back of a risk aversion environment, with spot gold reaching a fresh 5-week high of 1,153.99 a troy ounce.

The bright metal demand was boosted by the continued decline in Chinese stocks, spurring concerns that the PBoC will intervene again the Yuan in an attempt to cold down financial markets.

Additionally, the commodity latest decline was related to the possibility that the FED would raise rates in September, but ever since the latest Minutes were dovish, gold buyers are now betting a rate hike will be delayed towards December.

Technically, the gold is extremely overbought according to the 4 hours chart, after advancing almost $35 in the last two days.

Click the image to open in full size.

In the same chart, the technical indicators are partially losing their upward strength, but remain in extreme levels, while the 20 SMA heads sharply higher, now around 1,128.05.

On daily basis, the technical picture is strongly bullish, with the indicators heading north well above their mid-lines, and the price approaching a critical dynamic resistance, the 100 DMA at 1,161.45.
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Old Aug 26, 2015, 8:56am   #8
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CapitalStreetFX started this thread Dollarís demand weighed heavily on gold prices, as the commodity gave back most of its latest gains. Spot gold added another $12 to its latest decline, ending the day around $1,138.80 a troy ounce, as risk aversion sentiment eased across most of the financial markets, while the dollar recovered some of its shine.

The metal managed to hold above $1,110, a critical level that has become a line in the sand for this recent recovery, as renewed selling interest below it should signal a retest of July low around $1,071.

Click the image to open in full size.

Technically, the daily chart shows that the 20 SMA maintains a bullish slope well below the current level, but that the technical indicators continue to head lower, coming from overbought levels, and still above their mid-lines.

In shorter term, the 4 hours chart presents a firmer negative bias, with the 20 SMA gaining bearish potential well above the current level and the technical indicators heading sharply lower below their mid-lines.
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