Daily Markets

• Oil was headed for a second week of declines even as it rose on Friday, as the dollar firmed before a speech by Federal Reserve Chair Jerome Powell while concerns over tight supply eased. For the week, crude prices are set to fall between 1.2%-2.2%, a second consecutive week of decline. Investor caution ahead of Powell's remarks at the Jackson Hole Symposium lifted the safe-haven dollar to a 10-week high, its biggest rise in a month, as markets waited for word on how long rates would stay elevated. A strong dollar makes oil more expensive for holders of other currencies, denting demand. On the supply side, talks between Turkey and Iraq's semi-autonomous Kurdistan regional government on northern Iraqi crude oil exports are still going on after officials failed to reach an agreement to restart oil exports earlier this week. Turkey stopped Iraqi oil flows via the Ceyhan port on March 25 after losing a long-standing arbitration case brought by Iraq. The market is closely monitoring the flows of Iranian oil as the country's crude oil output will reach 3.4 million bpd by the end of September, Iran's oil minister was quoted as saying by state media, even though U.S. sanctions remain in place. Further weighing on market sentiment, U.S. officials are drafting a proposal that would ease sanctions on Venezuela's oil sector, allowing more companies and countries to import its crude oil. Norway's Equinor said on Friday it has started production at its extended Statfjord Ost field six months ahead of schedule and expects output to rise by 26 million barrels of oil equivalent. Analysts estimated that the top oil exporter will likely roll over a voluntary oil cut of 1 million barrels per day for a third consecutive month into October, amid uncertainty about supplies and as the kingdom targets drawing down global inventories further.

Gold – XAU

Gold on Thursday made its intraday high of US$1923.16/oz and low of $1911.64/oz. Gold is up by 0.0657% at US$1916.49/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 Thursday made its intraday high of US$24.33/oz and low of US$24.03/oz settled down by 0.790% at US$24.10/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 24.00-19.30, 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 23.50-27.50 with a stop loss above 27.50; targeting 23.40-22.90-22.05 and 21.60-21.00

Oil - WTI

Crude Ol on Thursday made an intra‐day high of US$79.17/bbl, an intraday low of US77.51/bbl, and settled down by 1.271% to close at US78.75/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 78.90-78.10-and 77.10-76.40-75.50. Buy above 78.90-74.40 with risk daily closing below 74.40; targeting 79.90-80.50 and 81.20-81.90-83.40.

EUR/USD

EUR/USD on Thursday made an intraday low of US$1.0804/EUR, a high of US$1.0875/EUR, and settled the day down by 0.482% to close at US$1.0809/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 Thursday made an intra‐day low of US$1.2590/GBP, a high of US$1.2727/GBP, and settled the day down by 0.927% to close at US$1.2599/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 basis. 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 1.2520-1.2300 with a target of 1.2600-1.2650-1.2800 and 1.2855-1.2900-1.2990 with a stop loss closing below 1.2400. Sell in between 1.2600-1.3200 with targets at 1.2520-1.2480-1.2450 and 1.2390-1.2300 with a stop loss of 1.3140.

USD/JPY

USD/JPY on Thursday made an intra‐day low of JPY144.59/USD, an intraday high of JPY145.95/USD, and settled the day up by 0.695% at JPY145.81/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.