Daily Markets

• Oil prices hovered near their highest levels since mid-April after top producers Saudi Arabia and Russia pledged to extend supply cuts through September, further tightening supplies. Prices have seen a sustained rally, with both key benchmarks notching up their sixth consecutive weekly gains last week. Despite the United States losing its top credit rating last week, the underlying global macroeconomic backdrop still appears upbeat, said PVM analyst Tamas Varga. He noted that stuttering global factory activity is being countered by revived service sectors, inflation is being mitigated, the job market in the U.S. is resilient, and peak interest rates in major economies might be close. On the supply side, the world's top exporter Saudi Arabia on Thursday extended its voluntary production cut of 1 million barrels per day (bpd) to the end of September, keeping the door open for more. In line with production cuts, Saudi Aramco raised on Saturday the official selling prices for most grades it sells to Asia for a third month in September. Russia added to the crunch with its announcement to cut oil exports by 300,000 bpd in September. Varga said that alongside these additional cuts and estimates of significant depletion in oil inventories in coming months, "the fundamental backdrop becomes blatantly encouraging." In focus, however, is Chinese economic data this week to gauge Beijing's appetite for more stimulus measures to support the world's second-largest economy, following a dismal second quarter.

Gold – XAU

Gold on Friday made its intraday high of US$1946.87/oz and low of $1925.36/oz. Gold is up by 0.462% at US$1942.90/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 Friday made its intraday high of US$23.78/oz and low of US$23.13/oz settled up by 0.352% at US$23.63/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 Friday made an intra‐day high of US$82.86/bbl, an intraday low of US$81.22/bbl, and settled up by 1.11% to close at US82.25/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 82.50-85.00 with stop loss at 85.00; targeting 81.20-80.50-79.70-78.90 and 78.00-77.10-76.00. Buy above 81.90-77.40 with risk daily closing below 77.40; targeting 81.90-82.50-83.40 and 84.00-85.00

EUR/USD

EUR/USD on Friday made an intraday low of US$1.0934/EUR, a high of US$1.1041/EUR, and settled the day up by 0.544% to close at US$1.1008/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 1.0980-1.1390, targeting 1.0940-1.0900-1.0840 and 1.0790-1.0750-1.0660 with stop-loss at daily closing above 1.1390. Buy above 1.0940-1.0705 with risk below 1.0725 targeting 1.1060-1.1150 and 1.1210-1.1250-1.1290.

GBP/USD

GBP/USD on Friday made an intra‐day low of US$1.2675/GBP, a high of US$1.2791/GBP, and settled the day up by 0.336% to close at US$1.2749/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 Friday made an intra‐day low of JPY141.56/USD, an intraday high of JPY142.89/USD, and settled the day down by 0.529% at JPY141.75/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