Daily Markets

• Oil prices eased on Thursday amid disappointing economic data from key economies and as investors await a speech by U.S. Federal Reserve Chair Jerome Powell on Friday for clues on interest rates. Manufacturing data from a host of purchasing managers' index (PMI) surveys on Wednesday painted a grim picture of the health of economies across the globe, raising demand concerns, analysts said. Japan reported shrinking factory activity for a third straight month in August. Euro zone business activity also declined more than expected, particularly in Germany. Britain's economy looked set to shrink in the current quarter, leaving it in danger of falling into recession. U.S. business activity approached the stagnation point in August, with growth at its weakest since February. Meanwhile, Federal Reserve officials and policymakers from the European Central Bank, the Bank of England and the Bank of Japan head to Jackson Hole where higher-for-longer interest rate talk may dominate despite a dip in inflationary pressures. The downward pressure on oil prices is largely due to concerns surrounding a potential decrease in demand and rising supply of oil on top of downbeat PMI readings, said Sugandha Sachdeva, executive director and chief strategist at Acme Investment Advisors. On the supply side, Iran's crude oil output will reach 3.4 million barrels per day (bpd) by the end of September, the country's oil minister was quoted as saying by state media, even though U.S. sanctions remain in place. U.S. officials are also drafting a proposal that would ease sanctions on Venezuela's oil sector, allowing more companies and countries to import its crude oil, if the South American nation moves toward a free and fair presidential election, according to five people with knowledge of the plans. U.S. crude inventories fell by 6.1 million barrels in the week to Aug. 18 to 433.5 million barrels, compared with analysts' expectations in a Reuters poll for a 2.8 million-barrel drop However, a climb in U.S. gasoline stocks last week indicated fuel demand has been weaker than expected.

Gold – XAU

Gold on Wednesday made its intraday high of US$1920.14/oz and low of $1897.06/oz. Gold is up by 0.945% at US$1915.21/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 1932-1985 keeping stop loss closing above 1985, targeting 1907-1890-1881 and 1870-1861. Buy in between 1907-1,851 with risk below 1851 targeting 1924-and 1946-1960-1976.

Silver - XAG

Silver on Wednesday made its intraday high of US$24.34/oz and low of US$23.38/oz settled up by 3.78% at US$24.29/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 24.10-19.30, targeting 24.60-25.00 and 25.90-26.30 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 23.40-22.90-22.05 and 21.60-21.00

Oil - WTI

Crude Ol on Wednesday made an intra‐day high of US$79.82/bbl, an intraday low of US77.55/bbl, and settled down by 1.359% to close at US78.48/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 78.90-85.00 with stop loss at 85.00; targeting 78.00-77.10-76.00. Buy above 78.00-74.40 with risk daily closing below 74.40; targeting 79.00-79.90-80.50 and 81.20-81.90-83.40.

EUR/USD

EUR/USD on Wednesday made an intraday low of US$1.0801/EUR, a high of US$1.0870/EUR, and settled the day up by 0.165% to close at US$1.0862/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 1.0905-1.0840 and 1.0790-1.0750-1.0660 with stop-loss at daily closing above 1.1390. Buy above 1.0890-1.0705 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$1.2613/GBP, a high of US$1.2763/GBP, and settled the day down by 0.862% to close at US$1.2722/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 1.2650-1.2400 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 1.2700-1.3200 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 JPY144.53/USD, an intraday high of JPY145.87/USD, and settled the day down by 0.724% at JPY144.82/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 146.00-148.00 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.