Daily Markets

• Oil prices climbed 1% on Thursday, recouping losses from the previous session, as supply tightness and expectations of stronger Chinese demand overrode concerns about an economic slowdown. Oil prices declined on Wednesday after data showed U.S. crude inventories fell less than expected and the Federal Reserve raised interest rates by a quarter of a percentage point, leaving the door open to another hike. As the Fed's move was well expected, the market focus is turning to the Organization of the Petroleum Exporting Countries and allies, together called OPEC+, which holds its monthly Joint Ministerial Monitoring Committee meeting next week. The committee's outlook for demand will be key to whether de facto leader Saudi Arabia decides to extend its voluntary output cut of 1 million barrels per day (bpd) into September. Saudi Arabia trimmed its output to 9 million bpd in July from around 10 million bpd, its biggest output reduction in years, and in early July said it would extend the cut to August. Meanwhile, market sentiment remains buoyed by China's vows earlier this week to take more steps to boost growth. Analysts from Commonwealth Bank of Australia (OTC:CMWAY) expected Brent oil futures will rise to $85 per barrel by the fourth quarter on expectations that OPEC+ supply cuts and resilient demand will force global oil stockpiles to fall. But capping the oil gains, the European Central Bank is expected to raise interest rates for the ninth time in a row on Thursday, which may not be the end to the policy tightening amid persistent inflation. Russia will significantly increase oil loadings in September, bringing to an end steep export cuts in June through August, as peak refinery maintenance will free up more crude for sales outside the country, three industry sources said and Reuters calculations based on refining data showed.

Gold – XAU

Gold on Wednesday made its intraday high of US$1977.98/oz and low of $1951.90/oz. Gold is up by 0.357% at US$1971.77/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 1984-2009 keeping stop loss closing above 2009, targeting 1954-1944-1934 and 1900-1894-1885. Buy in between 1971-1,871 with risk below 1874 targeting 1976-1985 and 2000-2009.

Silver - XAG

Silver on Wednesday made its intraday high of US$25.01/oz and low of US$24.50/oz settled up by 1.009% at US$24.92/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, bringing 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 24.20-18.30, 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 25.30-27.50 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 Tuesday made an intra‐day high of US$78.61/bbl, an intraday low of US$78.17/bbl, and settled up by 0.625% to close at US78.78/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 79.60-82.60 with stop loss at 82.60; targeting 78.00-77.10-76.00 and 75.20-74.00-73.30. Buy above 78.90-73.30 with risk daily closing below 73.30; targeting 79.60-80.50 and 81.20-81.90-82.50.

EUR/USD

EUR/USD on Wednesday made an intraday low of US$1.1037/EUR, a high of US$1.1104/EUR, and settled the day up by 0.728% to close at US$1.1085/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 1.1150-1.1390, 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 1.1100-1.0705 with risk below 1.0725 targeting 1.1150-1.1210-1.1250 and 1.1290-1.1350-1.1390.

GBP/USD

GBP/USD on Wednesday made an intra‐day low of US$1.2958/GBP, a high of US$1.2958/GBP, and settled the day up by 0.300% to close at US$1.2939/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 1.2940-1.2400 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 1.2990-1.3140 with targets at 1.2855-1.2800 and 1.2750-1.2650-1.2590 with a stop loss should be 1.3140.

USD/JPY

USD/JPY on Wednesday made an intra‐day low of JPY139.93/USD, an intraday high of JPY141.17/USD, and settled the day down by 0.471% at JPY140.21/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 140.10-146.00 with risk above 146.00 targeting 139.50-138.30-137.50 and 136.90-136.40-135.50. Long positions above 139.30-134.90 with targets of 142.20-143.00-144.20 and 145.00-146.00with stops below 134.00