Daily Markets

• Oil prices were choppy on Thursday after falling over the past three sessions, with the undertone grim on worries that slowing growth in China and possible further U.S. interest rate hikes will weaken fuel demand in the world's two biggest economies. Traders will closely watch Chinese economic data and government policy moves, in addition to U.S. oil inventory data as oil producers in the country could start increasing output to gain market share amid production cuts by the OPEC+ group, Teng said. In China, missed payments on investment products by a leading Chinese trust firm and a fall in home prices have added to worries that its deepening property crisis is stifling what little momentum the economy has left. China's central bank unexpectedly cut key policy rates for the second time in three months this week but analysts worry it may not be enough to arrest the economy's downward spiral. Minutes of the U.S. Federal Reserve's July meeting released on Wednesday also weighed on oil prices, as they showed that the central bank's officials did not give strong indications about pausing rate hikes, as they continued to prioritise the battle against inflation. Higher interest rates increase borrowing costs for businesses and consumers, which could slow economic growth and reduce oil demand.

Gold – XAU

Gold on Wednesday made its intraday high of US$1907.09/oz and low of $1891.70/oz. Gold is down by 0.507% at US$1891.87/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. 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 1909-1985 keeping stop loss closing above 1985, targeting 1920-1928-1943 and 1954-1944-1934. Buy in between 1890-1,851 with risk below 1874 targeting 1909-1920-1946 and 1960-1976-1985.

Silver - XAG

Silver on Wednesday made its intraday high of US$22.40/oz and low of US$22.38/oz settled down by 0.479% at US$22.40/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 22.00-18.30, 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 22.60-27.50 with a stop loss above 27.50; targeting 22.05-21.60-21.00.

Oil - WTI

Crude Ol on Wednesday made an intra‐day high of US$80.97/bbl, an intraday low of US78.68/bbl, and settled down by 2.273% to close at US78.90/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 79.90-85.00 with stop loss at 85.00; targeting 78.90 and 78.00-77.10-76.00. Buy above 79.00-77.40 with risk daily closing below 77.40; targeting 79.90-80.50-81.20 and 81.90-83.40 and 84.00-85.00.

EUR/USD

EUR/USD on Wednesday made an intraday low of US$1.0870/EUR, a high of US$1.0933/EUR, and settled the day down by 0.212% to close at US$1.0878/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 1.0910-1.1390, targeting 1.0905-1.0840 and 1.0790-1.0750-1.0660 with stop-loss at daily closing above 1.1390. Buy above 1.0870-1.0705 with risk below 1.0725 targeting 1.0940-1.1060-1.1150 and 1.1210-1.1250-1.1290.

GBP/USD

GBP/USD on Wednesday made an intra‐day low of US$1.2686/GBP, a high of US$1.2765/GBP, and settled the day up by 0.218% to close at US$1.2729/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 1.2700-1.2400 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 1.2750-1.3200 with targets at 1.2700-1.2650-1.2590 and 1.2520-1.2450 with a stop loss should be 1.3140.

USD/JPY

USD/JPY on Wednesday made an intra‐day low of JPY145.30/USD, an intraday high of JPY146.40/USD, and settled the day up by 0.524% at JPY146.33/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 146.50-148.00 with risk above 148.00 targeting 145.20-144.00-143.60 and 143.00-142.20-141.00. Long positions above 145.20-139.90 with targets of 146.00-147.10-148.00 and 148.80-149.50-150.10 with stops below 134.00.