Daily Markets

• Oil prices ticked higher on Monday after China took steps to support its flagging economy, though investors remained worried about the pace of growth as well as further U.S. interest rate hikes that could dampen fuel demand. Brent and WTI posted a second week of losses on Friday after Fed Chair Jerome Powell said the U.S. central bank may need to raise rates further to cool still-too-high inflation. Oil benefited from a better tone on the opening, IG market analyst Tony Sycamore said, after China halved stamp duty on stock trading effective Monday in the latest attempt to boost struggling markets. China's manufacturing purchasing managers' index (PMI), due later this week, is likely to reveal more dour economic news around the world's second-biggest economy, Sycamore said, adding that the PMI was likely to stay in contraction territory for a fifth consecutive month. CMC markets analyst Tina Teng said a soft-landing scenario for the U.S. economy buoyed energy markets on Monday, despite the Federal Reserve's hawkish stance on rate hikes. In the United States, energy firms cut the number of active oil rigs for a ninth month in August, Baker Hughes said in a report. Also, Tropical Storm Idalia has formed in the Caribbean and could strengthen into a hurricane and hit Florida. The hurricane is forecast to miss oil and gas centres in the Gulf and the most likely impact is a day or two of power outages, said IG's Sycamore. That "should see some short term support for the oil price", he said. Oil prices have remained above $80 a barrel on support from falling oil inventories and supply cuts from the OPEC+ collective of oil producers. However, "the narrative of tightening supply," has been eroded by prospects of easing sanctions on Iran and Venezuela, ANZ Research said in a client note on Monday.

Gold – XAU

Gold on Friday made its intraday high of US$1922.22/oz and low of $1903.62/oz. Gold is down by 0.102% at US$1914.60/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 Friday made its intraday high of US$24.36/oz and low of US$23.90/oz settled down by 0.468% at US$24.22/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 24.50-27.50 with a stop loss above 27.50; targeting 24.00-23.40-22.90-22.05 and 21.60-21.00

Oil - WTI

Crude Ol on Friday made an intra‐day high of US$80.28/bbl, an intraday low of US78.05/bbl, and settled up by 1.497% to close at US79.92/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 80.50-85.00 with stop loss at 85.00; targeting 79.90-78.90-78.10-and 77.10-76.40-75.5. Buy above 79.90-74.40 with risk daily closing below 74.40; targeting 79.90-80.50 and 81.20-81.90-83.40.

EUR/USD

EUR/USD on Friday made an intraday low of US$1.0765/EUR, a high of US$1.0841/EUR, and settled the day down by 0.482% to close at US$1.0795/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 Friday made an intra‐day low of US$1.2590/GBP, a high of US$1.2649/GBP, and settled the day down by 0.150% to close at US$1.2580/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 Friday made an intra‐day low of JPY145.73/USD, an intraday high of JPY146.63/USD, and settled the day up by 1.12% at JPY146.43/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 147.00-150.10 with risk above 150.20 targeting 145.20-144.00-143.60 and 143.00-142.20-141.00. Long positions above 146.20-139.90 with targets of 147.10-148.00 and 148.80-149.50-150.10 with stops below 134.00.