Daily Markets

• The dollar fell to a more than one-year low against the euro and sterling on Wednesday after data showed employers added 818,000 fewer jobs in the year to March than previously thought. The release comes before a highly anticipated speech by Federal Reserve Chair Jerome Powell at the Kansas City Fed's Jackson Hole economic symposium on Friday, which will be watched for any new clues on his view of the labor market. Markets are looking for clarity on the likely size of a rate cut at the Fed's Sept. 17-18 meeting, and whether borrowing costs are likely to be lowered at each subsequent Fed meeting. Fed officials last month were strongly leaning toward an interest rate cut at their September policy meeting and several of them would have even been willing to reduce borrowing costs immediately, according to the minutes of the July 30-31 gathering released on Wednesday. Fewer-than-expected job gains in July and an unexpected increase in the unemployment rate led traders to price for larger rate cuts on concern the United States is facing an imminent recession. Those concerns were rowed back by better data, including a strong retail sales report for July and also higher-than-expected shelter inflation for the month. But markets remain highly sensitive to jobs data for any new signs that the economy is worsening at a quicker pace. August's employment and inflation reports will be released after Powell’s speech but before the September meeting. Strength in the euro may be stretched after the recent rally, said UBS' Serebriakov.

Gold – XAU

Gold on Wednesday made its intraday high of US$2519.80/oz and low of $2493.69/oz. Gold is down by 0.062% at S$2512.09/oz.

Technicals in Focus:

On the daily charts, gold trades higher than 20DMA (2197). If it drops below this level, it could lead to 2,100. The MACD is currently above the zero line and the histograms are showing an increasing trend, indicating that there may be upward movement in the coming sessions. The RSI is currently at 83.04, which is in the overbought region, suggesting there may be selling pressure in the next 2 to 3 sessions. The Stochastic Oscillator is also in the overbought territory but has given a positive crossover, indicating a bullish stance for intraday trades, but rebound in expected in all the overbought indicators.

Trading Strategy: Sell on Strength

Sell below 2512-2560 keeping stop loss closing above 2560, targeting 2,490-2,484-2,470 and 2459-2431-2418. Buy in between 2490-2430 with risk below 2430 targeting 2512-2,520-2531 and 2545-2560.

Silver - XAG

Silver on Wednesday made its intraday high of US$29.71/oz and low of US$29.18/oz settle down by 0.517% at US$29.58/oz.

Technicals in Focus:

On daily charts, silver is sustaining above 20MA (25.05), breakage above will lead to 23.73. MACD is below the zero line and histograms are increasing trend, bringing a bullish stance in the upcoming sessions. RSI is in the oversold region, indicating a sell signal for now. The Stochastic Oscillator is in the overbought region and gives a positive crossover to show an upside move for the intraday trade.

Trading Strategy: Buy on Dips

Buy in between 29.40-25.90, targeting 29.70 and 30.50-31.10- 31.90 with stop loss should be placed on the breakage below 25.00. Sell in between 29.70-31.00 with a stop loss above 31.50 targeting 28.90-28.00-27.60 and 27.10-26.50-26.00.

Oil - WTI

Crude Oil on Wednesday made an intra‐day high of US$74.23 /bbl, an intraday low of US$74.23/bbl, and settled down by 0.931% to close at US$72.98/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 to confirm 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 73.50-80.00 with stop loss at 80.00; targeting 73.00-72.50-71.90-71.00. Buy above 73.00-71.00 with risk daily closing below 71.00, targeting 73.10-73.90-74.50 and 76.00-78.10-78.75-79.80.

EUR/USD

EUR/USD on Wednesday made an intraday low of US$1.10984/EUR, a high of US$1.1173/EUR, and settled the day up by 0.1779% to close at US$1.1148/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 1.1130-1.1400, targeting 1.1100-1.1020-1.0960 and 1.0850- 1.0785with stop-loss at daily closing above 1.1100. Buy above 1.1100-1.0785 with risk below 1.0400 targeting 1.1130-1.1190-1.1250 and 1.1290-1.1340-1.1400.

GBP/USD

GBP/USD on Wednesday made an intra‐day low of US$1.3010/GBP, a high of US$1.3118/GBP, and settled the day up by 0.402% to close at US$1.3083/GBP.

Technicals in Focus:

On daily charts, prices are sustaining above 50DMA (1.2674) is becoming a support 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 a bullish 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 1.2950-1.2600 with a target of 1.2990-1.3040 and 1.3100-1.3150 with a stop loss closing below 1.2600. Sell in between 1.2990-1.3100 with targets at 1.2950-1.2890-1.2790-1.2720 and 1.2670-1.2610-1.2500 with a stop loss of 1.3100.

USD/JPY

USD/JPY on Wednesday made an intra‐day low of JPY144.45/USD an intraday high of 146.89/USD, and settled the day down by 0.157% at JPY144.99/USD.

Technicals in Focus:

In daily charts, JPY is sustaining above 100DMA (155.35), 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 145.50-150.00 with risk above 150.00 targeting 145.00 and 144.20-143.60-142.90. Long positions above 145.00-141.00 with targets of 146.00-146.90-148.90-149.50 and 150.10-151.00 with stops below 146.00.