Daily Markets

• Oil extended losses on Friday, further receding from this week's 10-month highs, as fears about the health of China's slowing economy and a stronger U.S. dollar wiped out the gains triggered by supply cuts from major producers Saudi Arabia and Russia. Both benchmarks reached 10-month highs earlier this week on concerns about potential shortages during the peak winter demand season after Saudi Arabia and Russia extended their voluntary supply cuts to the end of the year. Despite these bullish signals, China's bumpy recovery, and the strong U.S. dollar, are weighing on prices, said Priyanka Sachdeva, senior market analyst from Phillip Nova. Investors expect U.S. interest rates to linger at 20-year highs, and that has unleashed the dollar, making it more expensive to buy crude in other currencies. The U.S. dollar index was just off a six-month peak on Friday. China's overall exports and imports fell in August, data showed on Thursday, as the twin pressures of sagging overseas demand and weak consumer spending squeezed businesses in the world's second-largest economy. But China's crude imports surged 30.9% last month as refiners built inventories and increased processing to benefit from higher profits from exporting fuel. A bigger-than-expected draw in {{8849|U.S. crcrude oil inventories lent muted support to oil prices. U.S. crude oil stockpiles fell for the fourth consecutive week, with inventories down more than 6% in the last month, as oil refiners run at high rates to keep up with global energy demand, Energy Information Administration data showed on Thursday Crude inventories fell by 6.3 million barrels, triple the 2.1 million-barrel drop that analysts expected. Despite its pledge to maintain supply cuts, Russia is expected to boost its oil exports in September as Russian refineries start seasonal maintenance, Reuters calculations based on sources' data show, which is also curbing price gains.

Gold – XAU

Gold on Thursday made its intraday high of US$1923.52/oz and low of $1916.12/oz. Gold is up by 0.143% at US$1919.42/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 1936-1970 keeping stop loss closing above 1970, targeting 1907-1890-1881 and 1870-1861. Buy in between 1922-1851 with risk below 1851 targeting 1946-1960-1976 and 1980-1990.

Silver - XAG

Silver on Thursday made its intraday high of US$23.17/oz and low of US$22.82/oz settled down by 0.859% at US$22.95/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 23.00-19.30, targeting 23.50-24.60-25.00 and 25.90-26.30 with stop loss should be placed on the breakage below 18.00. Sell in between 24.00-27.50 with a stop loss above 27.50; targeting 22.90-22.05 and 21.60-21.00

Oil - WTI

Crude Ol on Thursday made an intra‐day high of US$73.57/bbl, an intraday low of US$70.95/bbl, and settled down by 0.279% to close at US72.69/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 Thursday made an intraday low of US$1.0685/EUR, a high of US$1.0731/EUR, and settled the day up by 0.287% to close at US$1.0695/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 Thursday made an intra‐day low of US$1.2444/GBP, a high of US$1.2507/GBP, and settled the day down by 0.219% to close at US$1.2471/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 Thursday made an intra‐day low of JPY147.03/USD, an intraday high of JPY147.86/USD, and settled the day down by 0.243% at JPY147.27/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 147.90-150.10 with risk above 150.20 targeting 145.20-144.00-143.60 and 143.00-142.20-141.00. Long positions above 147.00-139.90 with targets of 147.50-148.00 and 148.80 and 149.50-150.10 with stops below 134.00.