Daily Markets

• Oil prices edged lower on Tuesday on signs of profit-taking after rallying in July when investors benefited from tightening global supplies and signs of growing demand in the second half of the year. PVM analyst Tamas Varga noted that for months, predictions have been made that global oil demand will grow in the second half of 2023, versus the first half, in tandem with supply cuts to reduce global oil inventories. The latest figures from the United States - the world's biggest fuel consumer - showed fuel demand rose to 20.78 million bpd in May, the highest since August 2019. A Reuters poll also estimated U.S. crude oil and gasoline stockpiles were expected to have declined last week. Figures suggested that, on average, crude inventories fell by about 900,000 barrels in the week to July 28. China, which has been grappling with a sluggish post-COVID recovery, released additional policy guidelines on Monday - though without concrete measures - to boost momentum, after manufacturing activity fell for a fourth month in July. Alongside hopes of burgeoning demand, this Friday's meeting of the Organization of Petroleum Exporting Countries and allies, known as OPEC+, is expected to see Saudi Arabia roll its voluntary cuts through September, further tightening supplies.

Gold – XAU

Gold on Monday made its intraday high of US$1972.24/oz and low of $1951.01/oz. Gold is up by 0.468% at US$1965.31/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 1960-2009 keeping stop loss closing above 2009, targeting 1954-1944-1934 and 1900-1894-1885.Buy in between 1950-1,871 with risk below 1874 targeting 1960-1976-1985 and 2000-2009.

Silver - XAG

Silver on Monday made its intraday high of US$24.82/oz and low of US$24.18/oz settled up by 1.710% at US$24.73/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 24.90-27.50 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 Monday made an intra‐day high of US$81.76/bbl, an intraday low of US$79.93/bbl, and settled up by 1.516% to close at US81.55/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 81.20-82.60 with stop loss at 82.60; targeting 80.50-79.70-78.00 and 77.10-76.00-75.20. Buy above 80.50-76.30 with risk daily closing below 76.30; targeting 81.20-81.90-82.50 and 83.10-84.00.

EUR/USD

EUR/USD on Monday made an intraday low of US$1.0992/EUR, a high of US$1.1045/EUR, and settled the day up by 0.395% to close at US$1.0996/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 1.1020-1.1390, targeting 1.0990-1.0900-1.0840 and 1.0790-1.0750-1.0660 with stop-loss at daily closing above 1.1390. Buy above 1.0950-1.0705 with risk below 1.0725 targeting 1.1060-1.1150 and 1.1210-1.1250-1.1290.

GBP/USD

GBP/USD on Monday made an intra‐day low of US$1.2827/GBP, a high of US$1.2872/GBP, and settled the day up by 0.010% to close at US$1.2833/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 1.2855-1.2400 with a target of 1.2900-1.2990-1.3050 and 1.3140-1.3200-1.3260 with a stop loss closing below 1.2400. Sell in between 1.2900-1.3140 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 Monday made an intra‐day low of JPY140.68/USD, an intraday high of JPY142.68/USD, and settled the day up by % at JPY142.26/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 142.20-146.00 with risk above 146.00 targeting 139.50-138.30-137.50 and 136.90-136.40-135.50. Long positions above 141.00-134.90 with targets of 142.20-143.00-144.20 and 145.00-146.00with stops below 134.00