Daily Markets

• Oil slipped on Monday as concerns about a global economic slowdown and possible further interest rate hikes from the U.S. Federal Reserve weighed on prices, offsetting forecasts of tighter supplies and OPEC+ output cuts. Fears of a further slowdown hurting fuel demand grew after data on Friday showed U.S. inflation still outpacing the central bank's 2% target and stoked expectations it would hike interest rates again. Brent fell for the fourth straight quarter by the end of June while WTI notched a second quarterly drop as the world's top two economies, the U.S. and China, lost speed in the second quarter. Higher interest rates could strengthen the greenback, making commodities more expensive for holders of other currencies, and also dampen oil demand. Factory activity growth in China, the world's largest crude importer, also slowed in June as sentiment and recruitment cooled on the back of sluggish market conditions, according to the Caixin/S&P Global private sector survey. Still, some analysts expect supplies to tighten and push prices higher in the second half after top exporter Saudi Arabia pledged an extra 1 million barrels per day output cut in July, while the U.S. is gradually replenishing its Strategic Petroleum Reserve.

Gold – XAU

Gold on Friday made its intraday high of US$1922.66/oz and low of $1900.41/oz. Gold is up by 0.606% at US$1919.60/oz.

Technicals in Focus:

In daily charts, prices are above 200DMA (1894) and breakage below will call for 1871. MACD is below the zero line and histograms are also decreasing trend and it will bring more downward stance in the upcoming sessions. RSI is in the oversold region and more downside is expected before it gets stretched. The Stochastic Oscillator is in oversold territory and giving a negative crossover to a bearish stance for intraday trade.

Trading Strategy: Sell on Strength

Sell below 1920-2000 keeping stop loss closing above 2000, targeting 1900-1894-1885 and 1871-1858. Buy in between 1894-1,871 with risk below 1874 targeting 1909-1920-1934 and 1944-1954-1966.

Silver - XAG

Silver on Friday made its intraday high of US$22.82/oz and low of US$22.32/oz settled up by 0.922% at US$22.76/oz.

Technicals in Focus:

On daily charts, silver is sustaining below 200DMA (22.91), breakage above will lead to 23.51. MACD is below the zero line and histograms are decreasing trend and it will bring a bearish stance in the upcoming sessions. RSI is approaching the oversold region, indicating a sell signal for now. The Stochastic Oscillator is in the oversold region and gives a positive crossover to show an upside move for the intraday trade.

Trading Strategy: Buy on Dips

Buy in between 22.05-18.30, targeting 22.90-23.40-24.10 and 24.60-25.00-25.90-26.30 with stop loss should be placed on the breakage below 18.00. Sell in between 22.90-27.50 with a stop loss above 27.50; targeting 22.05-21.60-21.00 and 20.80.

Oil - WTI

Crude Ol on Friday made an intra‐day high of US$71.09/bbl, an intraday low of US$69.61/bbl, and settled up by 0.028% to close at US69.84/bbl.

Technicals in Focus:

On daily charts, oil is sustaining below its 200DMA i.e. 68.50 which is a support level and breakage below will call for 68.40. MACD is above the zero line and histograms are in increasing mode will bring a bullish stance in the upcoming sessions. The Stochastic Oscillator is in the neutral region, giving a positive crossover for confirmation of a bullish stance; while the RSI is in the neutral region and more upside can be expected to reach the overbought region, which is highly probable.

Trading Strategy: Neutral to Sell

Sell in between 70.90-74.70 with stop loss at 75.00; targeting 70.10-69.00-68.40 and 67.50-66.90-66.00. Buy above 70.10-66.50 with risk daily closing below 66.00; targeting 70.90-71.60 and 72.50-73.50-74.10.

EUR/USD

EUR/USD on Friday made an intraday low of US$1.0834/EUR, a high of US$1.0931/EUR, and settled the day up by 0.439% to close at US$1.0910/EUR.

Technicals in Focus:

On daily charts, prices are sustaining above 100DMA (1.0800), which becomes immediate support, a break below will target 1.0717. MACD is above the zero line and histograms are increasing mode, bringing a bullish view. Stochastic is in oversold territory, giving negative crossovers to the bullish outlook for intraday. 14D RSI is currently in a neutral region and giving no directions to consider right now.

Trading Strategy: Neutral to Sell

Sell below 1.0900-1.1390, targeting 1.0840-1.0790-1.0750 and 1.0660-1.0600-1.0550 with stop-loss at daily closing above 1.1390. Buy above 1.0840-1.0525 with risk below 1.0525 targeting 1.0900-1.0970-1.1020 and 1.1090-1.1150-1.1210.

GBP/USD

GBP/USD on Friday made an intra‐day low of US$1.2598/GBP, a high of US$1.2726/GBP, and settled the day up by 0.668% to close at US$1.2695/GBP.

Technicals in Focus:

On daily charts, prices are sustaining below 200DMA (1.2112) is becoming a resistance level. 14-D RSI is currently in a neutral region and direction is difficult to predict on RSI bases. The Stochastic Oscillator is in oversold territory and gives a positive crossover to confirm bullish a stance. MACD is above the zero line but histograms are increasing leading to movement.

Trading Strategy: Neutral to Buy

Based on the charts and explanations above; buy in between 1.2650-1.2400 with a target of 1.2690-1.2750-1.2855 and 1.2910-1.2970-1.3050 with a stop loss closing below 1.2400. Sell in between 1.2690-1.2950 with targets at 1.2650-1.2590 and 1.2520-1.2450 with stop loss should be 1.2970.

USD/JPY

USD/JPY on Friday made an intra‐day low of JPY144.19/USD, an intraday high of JPY145.06/USD, and settled the day down by 0.286% at JPY144.31/USD.

Technicals in Focus:

In daily charts, JPY is sustaining above 100DMA (137.57), which is major support on the daily chart. 14-D RSI is currently in the overbought region and chances of downward are expected based on RSI. MACD is above the zero line but histograms are in decreasing mode which might lead to downward movement. The Stochastic Oscillator is in overbought territory and signaling to sell as it has given a negative crossover to confirm a bearish stance.

Trading Strategy: Neutral to Sell

Sell below 145.40-148.00 with risk above 148.00 targeting 144.60-144.00-143.50 and 142.20-141.00-139.70. Long positions above 144.60-140.00 with targets of 145.40-146.00-146.90 and 147.50-148.00 with stops below 136.00