Daily Markets

• Oil prices rose for a second day on Friday, set for their sixth week of gains, after Saudi Arabia and Russia, the world's second and third-largest crude producers, pledged to cut output through next month. Both benchmarks were on track for a sixth week of gains, their longest streak of weekly gains this year. Brent has risen 15.4% and WTI by 18.2% during the last six weeks Saudi Arabia on Thursday extended a voluntary oil production cut of 1 million barrels per day (bpd) to the end of September. Russia will also slash its oil exports by 300,000 bpd in September, its Deputy Prime Minister Alexander Novak said. The Joint Ministerial Monitoring Committee of OPEC+ is unlikely to tweak its overall oil output cuts at its meeting on Friday, sources have said. But the extension of Saudi Arabia's reductions and comments by Russia ahead of the OPEC+ meeting have raised supply concerns, supporting prices However, the latest batch of U.S. data showing tight labor markets and a slowing service sector has triggered some worries that an economic slowdown would curb demand for oil and pressure prices lower, even with the supply cuts. Additionally, the downturn in euro zone business activity worsened more than initially thought in July and the Bank of England raised its interest rate to a 15-year peak on Thursday. Higher borrowing costs for businesses and consumers could slow economic growth and reduce oil demand However, an improved demand outlook and tighter supply could continue to buoy the oil markets, said Tina Teng, an analyst at CMC markets.

Gold – XAU

Gold on Thursday made its intraday high of US$1938.74/oz and low of $1929.49/oz. Gold is down by 0.0304% at US$1933.95/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 1946-2009 keeping stop loss closing above 2009, targeting 1954-1944-1934 and 1900-1894-1885. Buy in between 1930-1,871 with risk below 1874 targeting 1946-1960-1976 and 1985-2000-2009.

Silver - XAG

Silver on Thursday made its intraday high of US$23.82/oz and low of US$23.38/oz settled down by 0.490% at US$23.55/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 23.40-18.30, 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 23.90-27.50 with a stop loss above 27.50; targeting 23.40 and 22.05-21.60-21.00.

Oil - WTI

Crude Ol on Thursday made an intra‐day high of US$81.58/bbl, an intraday low of US$78.47/bbl, and settled up by 2.45% to close at US81.42/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 81.90-85.00 with stop loss at 85.00; targeting 81.20-80.50-79.70-78.90 and 78.00-77.10-76.00. Buy above 81.20-77.40 with risk daily closing below 77.40; targeting 81.90-82.50-83.40 and 84.00-85.00

EUR/USD

EUR/USD on Thursday made an intraday low of US$1.0911/EUR, a high of US$1.0962/EUR, and settled the day up by 0.106% to close at US$1.0948/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 1.0940-1.1390, targeting 1.0900-1.0840 and 1.0790-1.0750-1.0660 with stop-loss at daily closing above 1.1390. Buy above 1.0900-1.0705 with risk below 1.0725 targeting 1.1060-1.1150 and 1.1210-1.1250-1.1290.

GBP/USD

GBP/USD on Thursday made an intra‐day low of US$1.2619/GBP, a high of US$1.2727/GBP, and settled the day down by 0.0204% to close at US$1.2707/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 1.2750-1.2400 with a target of 1.2800-1.2855-1.2900 and 1.2990-1.3050-1.3140 with a stop loss closing below 1.2400. Sell in between 1.2800-1.3200 with targets at 1.2750-1.2650-1.2590 and 1.2520-1.2450 with a stop loss should be 1.3140.

USD/JPY

USD/JPY on Thursday made an intra‐day low of JPY142.06/USD, an intraday high of JPY143.88/USD, and settled the day down by 0.556% at JPY142.51/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 143.20-146.00 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