Daily Markets

• Oil prices were set to snap a two-week losing streak as they rose for a fourth consecutive session on Friday due to tightening supplies and expectations that the OPEC+ group of oil producers would extend output cuts to the end of the year. Analysts expect Saudi Arabia to extend a voluntary oil production cut of 1 million barrels a day into October, adding to cuts by the Organization Petroleum Exporting Countries and allies, known as OPEC+. Russia, the world's second largest oil exporter, has also agreed with OPEC+ partners to cut oil exports, Deputy Prime Minister Alexander Novak said on Thursday. U.S. crude inventories [USOILC=ECI] fell by a more-than-expected 10.6 million barrels last week, government data on Wednesday showed. Commercial crude oil inventories have plunged by 34 million barrels since the middle of July. Traders and investors often treat changes in U.S. inventories as a proxy for changes in the global production-consumption balance, and spot prices and spreacs can rise if there is persistent depletion of stocks. A weaker U.S. dollar, which looks set to end a six week winning streak, also helped prices. A stronger dollar pressures oil demand by making the commodity more expensive for buyers holding other currencies. A survey showing Chinese factory activity returning to expansion and moves by Beijing to support China's ailing housing market also helped boost oil prices on Friday, as traders hoped it would stimulate demand in the world's second-largest oil consumer.

Gold – XAU

Gold on Thursday made its intraday high of US$1947.72/oz and low of $1939.00/oz. Gold is down by 0.113% at US$1939.83/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 1950-1985 keeping stop loss closing above 1985, targeting 1907-1890-1881 and 1870-1861. Buy in between 1940-1851 with risk below 1851 targeting 1946-1960-1976 and 1980-1990.

Silver - XAG

Silver on Thursday made its intraday high of US$24.66/oz and low of US$24.35/oz settled down by 0.739% at US$24.42/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 Tuesday made an intra‐day high of US$83.32/bbl, an intraday low of US$81.21/bbl, and settled up by 2.30% to close at US83.23/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 81.20-85.00 with stop loss at 85.00; targeting 79.90-78.90-78.10-and 77.10-76.40-75.5. Buy above 80.50-74.40 with risk daily closing below 74.40; targeting 81.20-81.90-83.40 and 84.50-85.20.

EUR/USD

EUR/USD on Thursday made an intraday low of US$1.0835/EUR, a high of US$1.0938/EUR, and settled the day up by % to close at US$1.0842/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 1.0870-1.1390, targeting 1.0790-1.0750-1.0660 with stop-loss at daily closing above 1.1390. Buy above 1.0820-1.0705 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$1.2651/GBP, a high of US$1.2733/GBP, and settled the day down by 0.3695% to close at US$1.2671/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 1.2600-1.2300 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 1.2650-1.3200 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 JPY145.34/USD, an intraday high of JPY146.22/USD, and settled the day down by 0.479% at JPY145.52/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 146.00-150.10 with risk above 150.20 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.