Daily Markets

• Brent oil prices rose in Asian trading on Friday, as markets assessed the prospect of economic stimulus in China after weak economic data, falling inventories in the U.S. and supply cuts from key producers. China's weak economic figures had kept a lid on prices throughout the week. The world's second-biggest oil consumer this week posted disappointing growth in second-quarter gross domestic product, increasing the likelihood of the economy's missing the government's 5% annual growth target. However, sentiment across commodity markets has picked up on hopes the central government would roll out more stimulus measures to support the economy. Higher crude prices have come "on positive commentary on China stimulus and looked through impacts from the stronger U.S. dollar index," National Australia Bank analysts said in a note. On Wednesday, Beijing announced that it would formulate plans to stabilize growth in 10 sectors, as well as to increase support for private firms. Supporting prices, recent data, including lower-than-expected inflation and moderating job growth, have convinced many investors and analysts the Federal Reserve's expected July rate hike will be the last of its current tightening cycle. Supply fundamentals have also provided support to market sentiment. In early July, Riyadh said it would extend a voluntary output cut of 1 million barrels per day (bpd) into August, while Moscow said it would cut exports by 500,000 bpd in August. U.S. crude inventories fell last week, supported by a jump in crude exports as well as higher refinery utilization, the Energy Information Administration (EIA) said on Wednesday.

Gold – XAU

Gold on Thursday made its intraday high of US$1987.33/oz and low of $1965.30/oz. Gold is down by 0.369% at US$1969.25/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, which will bring more downward stances 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, giving a negative crossover to a bearish stance for intraday trade.

Trading Strategy: Sell on Strength

Sell below 1976-2009 keeping stop loss closing above 2009, targeting 1954-1944-1934 and 1900-1894-1885. Buy in between 1966-1,871 with risk below 1874 targeting 1976-1985 and 2000-2009.

Silver - XAG

Silver on Thursday made its intraday high of US$25.25/oz and low of US$24.69/oz settled down by 1.415% at US$24.74/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 24.60-18.30, targeting 25.00-25.90-26.30 and 26.90-27.50 with stop loss should be placed on the breakage below 18.00. Sell in between 25.00-27.50 with a stop loss above 27.50; targeting 24.60-24.10-23.40 and 22.05-21.60-21.00..

Oil - WTI

Crude Ol on Thursday made an intra‐day high of US$76.11/bbl, an intraday low of US$74.48/bbl, and settled up by 0.539% to close at US75.6/bbl.

Technicals in Focus:

On daily charts, oil is sustaining below its 200DMA i.e. 68.50, 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, more upside can be expected to reach the overbought region, which is highly probable.

Trading Strategy: Neutral to Sell

Sell in between 77.20-79.60 with stop loss at 79.60; targeting 76.00-75.20-74.00 and 73.30-72.55-71.60. Buy above 76.00-69.50 with risk daily closing below 69.00; targeting 77.20 and 78.00-78.90-79.60.

EUR/USD

EUR/USD on Thursday made an intraday low of US$1.1117/EUR, a high of US$1.1228/EUR, and settled the day down by 0.609% to close at US$1.1128/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 1.1200-1.1390, targeting 1.1020-1.0900-1.0840 and 1.0790-1.0750-1.0660 with stop-loss at daily closing above 1.1390. Buy above 1.1120-1.0705 with risk below 1.0725 targeting 1 and 1.1090-1.1150-1.1210.

GBP/USD

GBP/USD on Thursday made an intra‐day low of US$1.2839/GBP, a high of US$1.2965/GBP, and settled the day down by 0.558% to close at US$1.2986/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 1.2900-1.2400 with a target of 1.2990-1.3050-1.3140 and 1.3200-1.3260- 1.3320 with a stop loss closing below 1.2400. Sell in between 1.2970-1.3140 with targets at 1.2910-1.2855-1.2800 and 1.2750-1.2650-1.2590 with a stop loss should be 1.3140.

USD/JPY

USD/JPY on Thursday made an intra‐day low of JPY139.10/USD, an intraday high of JPY140.49/USD, and settled the day up by 0.545% at JPY140.05/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 139.60-143.00 with risk above 143.00 targeting 138.30-137.50-136.90 and 136.40-135.50-134.90. Long positions above 138.30-134.90 with targets of 139.30-140.10-140.50 and 141.00-142.20-144.00 with stops below 134.00