Daily Markets

• Oil edged higher on Wednesday as tighter supply arising from output cuts by Saudi Arabia and Russia offset concerns over slow demand from top crude importer China and a report showing rising U.S. crude inventories. Saudi Arabia's cabinet said on Tuesday that it reaffirms its support for precautionary measures by the Organization of the Petroleum Exporting Countries and its allies, known as OPEC+, to stabilise the market, state media reported. Crude posted its sixth consecutive weekly gains last week and hit its highest levels since mid-April on Monday, helped by a reduction in OPEC+ supplies and hopes of stimulus boosting oil demand recovery in China. Some bearish pressure came from American Petroleum Institute (API) figures on Tuesday, which according to market sources showed U.S. crude stocks rose by 4.1 million barrels last week, although gasoline and distillate inventories fell. Official U.S. Energy Information Administration inventory figures are out at 1430 GMT. On Tuesday, oil came under pressure from Chinese data showing crude oil imports in July fell 18.8% from the previous month to their lowest daily rate since January, although they were up 17% from a year earlier.

Gold – XAU

Gold on Tuesday made its intraday high of US$1938.02/oz and low of $1922.68/oz. Gold is down by 0.581% at US$1924.94/oz.

Technicals in Focus:

On the daily charts, gold is currently trading higher than 200DMA (1906). If it drops below this level, it could lead to 1,874. The MACD is currently below the zero line but the histograms are showing an increasing trend, indicating that there may be upward movement in the coming sessions. The RSI is currently at 45.31, which is in the neutral region, suggesting that there may be more selling pressure before it rebounds. Additionally, the Stochastic Oscillator is also in the oversold territory but has given a positive crossover, indicating a bullish stance for intraday trades.

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 Monday made its intraday high of US$23.17/oz and low of US$22.64/oz settled down by 1.467% at US$22.76/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 22.60-18.30, targeting 22.90-23.40-24.10 and 25.00-25.90-26.30 with stop loss should be placed on the breakage below 18.00. Sell in between 23.00-27.50 with a stop loss above 27.50; targeting 23.00 and 22.05-21.60-21.00.

Oil - WTI

Crude Ol on Tuesday made an intra‐day high of US$82.66/bbl, an intraday low of US$79.63/bbl, and settled up by 0.200% to close at US82.43/bbl.

Technicals in Focus:

On daily charts, oil is sustaining above its 100DMA i.e. 75.37, a support level, and breakage above will call for 77.48. 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 overbought region, giving a negative crossover for confirmation of a bearish 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 83.40-85.00 with stop loss at 85.00; targeting 80.50-79.70-78.90 and 78.00-77.10-76.00. Buy above 82.50-77.40 with risk daily closing below 77.40; targeting 83.40 and 84.00-85.00.

EUR/USD

EUR/USD on Tuesday made an intraday low of US$1.0928/EUR, a high of US$1.1010/EUR, and settled the day down by 0.421% to close at US$1.0955/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 1.0990-1.1390, 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 Monday made an intra‐day low of US$1.2683/GBP, a high of US$1.2784/GBP, and settled the day down by 0.282% to close at US$1.2746/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 1.2710-1.2400 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 1.2710-1.2650-1.2590 and 1.2520-1.2450 with a stop loss should be 1.3140.

USD/JPY

USD/JPY on Tuesday made an intra‐day low of JPY142.39/USD, an intraday high of JPY143.48/USD, and settled the day up by 0.631% at JPY143.36/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.