Daily Markets

• Oil prices looked set to snap a seven-week winning streak on Friday as concerns about China's slowing economic growth and the possibility of more U.S. interest rate hikes outweighed signs of tightening supply. The seven-week winning streak was the longest for both benchmarks this year. Brent futures rose by about 18% and WTI by more than 20% in the seven weeks ended Aug. 11 to the highest levels in months before paring some gains this week, when both fell by more than 3%. The U.S. Federal Reserve's focus on containing inflation amid stronger-than-expected economic data was keeping a lid on oil prices, which have risen sharply in the recent weeks due to concerns over supply. The U.S. Labor Department on Thursday reported the number of Americans filing new claims for jobless benefits fell in the last week, suggesting the still-tight employment market could prolong the Fed's tightening campaign to cool the economy. That report followed similarly upbeat economic data earlier in the week, including U.S. retail sales, which suggested the Fed may have to stick with higher rates for longer. Investors fret that higher borrowing costs could impede economic growth and in turn reduce overall demand, including for oil. Adding to the concerns, a recent batch of economic data from China, the world's second-largest oil consumer, has highlighted a rapid loss of economic momentum since the second quarter. China's sputtering economy has whipsawed global financial markets in the past few months, with a property crisis spooking investors amid contagion fears. However, tightening oil supply due to production cuts by the Organization of the Petroleum Exporting Countries and allies, together called OPEC+, and increasing demand, mainly due to higher travel and improved industrial activity in the U.S., has supported prices, and could lead to a rise in the coming days, analysts said. U.S. oil production was offsetting some losses in output due to OPEC+ cuts, but the falling U.S. rig count meant such support could likely be short-lived, ANZ Research said in a report on Friday. U.S. crcrude oil inventories fell by nearly 6 million barrels last week on strong exports and refining run rates. Weekly products supplied, a proxy for demand, rose to the highest since December.

Gold – XAU

Gold on Thursday made its intraday high of US$1903.37/oz and low of $1884.95/oz. Gold is down by 0.144% at US$1889.12/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 1900-1985 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 Thursday made its intraday high of US$22.99/oz and low of US$22.33/oz settled up by 1.19% at US$22.67/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 22.90-27.50 with a stop loss above 27.50; targeting 22.05-21.60-21.00

Oil - WTI

Crude Ol on Thursday made an intra‐day high of US$80.59/bbl, an intraday low of US78.58/bbl, and settled up by 0.894% to close at US79.54/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 Thursday made an intraday low of US$1.0855/EUR, a high of US$1.0917/EUR, and settled the day down by 0.0643% to close at US$1.0871/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 Thursday made an intra‐day low of US$1.2701/GBP, a high of US$1.2786/GBP, and settled the day up by 0.117% to close at US$1.2745/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 Thursday 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.