Daily Markets

• Oil prices eased on Thursday as worries over demand due to a seasonal slowdown during winter and an uncertain economic outlook for China outweighed expectations of tighter supplies from extended production cuts in Saudi Arabia and Russia. Both benchmarks had spiked earlier in the week after Saudi Arabia and Russia, the world's top two oil exporters, extended voluntary supply cuts to the year-end. These were on top of the April cuts agreed by several OPEC+ producers running to the end of 2024. Market participants also digested mixed data from China. Overall exports fell 8.8% in August year on year and imports contracted 7.3%. But crude imports surged 30.9%. Li said there were some encouraging signs for the Chinese economy. The extent of declines in trade data was less than expected and the Chinese government has also introduced a series of policy steps to boost financial and real estate markets. However, it is still too early to judge the pace of China's demand recovery, although it should have improved from July, he added. Concerns about rising oil output from Iran and Venezuela, which could balance out a portion on cuts from Saudi and Russia, kept a lid on the market as well. Helping support prices, U.S. crcrude oil inventories were projected to have fallen by 5.5 million barrels in the week ending Sept. 1, according to market sources citing American Petroleum Institute figures. Official inventory data from the U.S. Energy Information Administration is due at 11 a.m. EDT (1500 GMT) on Thursday.

Gold – XAU

Gold on Wednesday made its intraday high of US$1929.07/oz and low of $1915.20/oz. Gold is down by 0.500% at US$1916.24/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 in between 1922-1970 keeping stop loss closing above 1970, targeting 1907-1890-1881 and 1870-1861. Buy in between 1907-1851 with risk below 1851 targeting 1946-1960-1976 and 1980-1990.

Silver - XAG

Silver on Wednesday made its intraday high of US$23.58/oz and low of US$22.98/oz settled down by 1.597% at US$23.15/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 Wednesday made an intra‐day high of US$87.53/bbl, an intraday low of US$85.44/bbl, and settled up by 0.982% to close at US87.07/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 87.00-90.00 with stop loss at 90.00; targeting 86.00-85.60-85.00 and 84.50-83.60-82.50. Buy above 86.00-81.40 with risk daily closing below 81.40; targeting 87.00-87.50-88.10 and 89.00-89.90.

EUR/USD

EUR/USD on Wednesday made an intraday low of US$1.0702/EUR, a high of US$1.0748/EUR, and settled the day up by 0.045% to close at US$1.0726/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 1.0750-1.1100, targeting 1.0690-1.0630-1.0590 and 1.0500-1.0450 with stop-loss at daily closing above 1.1100. Buy above 1.0705-1.0450 with risk below 1.0450 targeting 1.0750-1.0800-1.0870 and 1.0940-1.1060-1.1150.

GBP/USD

GBP/USD on Wednesday made an intra‐day low of US$1.2481/GBP, a high of US$1.2587/GBP, and settled the day down by 0.452% to close at US$1.2506/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 an 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 1.2450-1.2300 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 1.2490-1.3200 with targets at 1.2450-1.2390-1.2300 and 1.2210-1.2150 with a stop loss of 1.3140.

USD/JPY

USD/JPY on Tuesday made an intra‐day low of JPY146.33/USD, an intraday high of JPY147.79/USD, and settled the day up by 0.850% at JPY147.70/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.