Daily Markets

• Oil prices were stable on Monday, amid expectations that major producers would keep supplies tight, as hopes grew for the Federal Reserve to leave interest rates unchanged to avoid dampening the U.S. economy. Russia had agreed with partners in the Organization of the Petroleum Exporting Countries (OPEC) on the parameters for continued export cuts Russian Deputy Prime Minister Alexander Novak said on Thursday. An official announcement detailing the planned cuts is expected this week. Russia has already said it will cut exports by 300,000 barrels per day (bpd) in September, following a 500,000-bpd cut in August. Saudi Arabia is also expected to roll over a voluntary 1-million-bpd cut into October. Speaking on Monday at the APPEC conference in Singapore, Vitol's chief executive Russell Hardy said the global crude market should become less tight in the next six to eight weeks because of refinery maintenance, but supplies of sour crude, with higher sulphur content, will stay tight. In the U.S., job growth gained momentum in August, but the unemployment rate climbed to 3.8% and wage gains moderated, suggesting that labour market conditions were cooling and cementing expectations that the Federal Reserve will not put a further dampener on the economy by raising interest rates this month. In China, manufacturing activity unexpectedly expanded in August, data from Caixin's manufacturing PMI survey indicated, reducing some of the pessimism about the economic health of the world's largest oil importer. Beijing's economic support measures last week, such as deposit rate cuts at some of the largest state-owned banks and an easing of borrowing rules for home buyers, have also supported prices.

Gold – XAU

Gold on Friday made its intraday high of US$1952.75/oz and low of $1934.38/oz. Gold is up by 0.0286% at US$1940.28/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 1943-1851 with risk below 1851 targeting 1946-1960-1976 and 1980-1990.

Silver - XAG

Silver on Friday made its intraday high of US$24.80/oz and low of US$24.13/oz settled down by 0.091% at US$24.18/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$83.53/bbl, an intraday low of US$83.07/bbl, and settled up by 2.80% to close at US83.52/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 85.50-88.00 with stop loss at 85.00; targeting 79.90-78.90-78.10-and 77.10-76.40-75.5. Buy above 85.00-81.40 with risk daily closing below 81.40; targeting 85.20-84.50-83.60 and 82.50-81.70-81.20.

EUR/USD

EUR/USD on Friday made an intraday low of US$1.0771/EUR, a high of US$1.0881/EUR, and settled the day up by 1.11% to close at US$1.0775/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 Friday made an intra‐day low of US$1.2576/GBP, a high of US$1.2712/GBP, and settled the day down by 0.643% to close at US$1.2590/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 Friday made an intra‐day low of JPY144.43/USD, an intraday high of JPY146.28/USD, and settled the day up by 0.494% at JPY146.23/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 147.10-150.10 with risk above 150.20 targeting 145.20-144.00-143.60 and 143.00-142.20-141.00. Long positions above 146.00-139.90 with targets of 147.10-148.00 and 148.80-149.50-150.10 with stops below 134.00.