Daily Markets

• The U.S. dollar rallied from an eight-month low on Monday, while the yen rose against most currencies, as geopolitical tension in the Middle East intensified, prompting investors to seek safe-haven shelter. Volume was lighter than usual, with UK markets closed for a public holiday. The Swiss franc also advanced after Israel and Hezbollah fired missiles at each other over the weekend in one of the biggest clashes in more than 10 months of border conflict.Helen Given, FX trader at Monex USA in Washington, said overall the yen had gained more than the other safe havens, particularly against the dollar, as it continued to benefit from an expected U.S. interest rate cut next month, which was confirmed by Federal Reserve Chair Jerome Powell last Friday in a hawkish speech in Jackson Hole, Wyoming. That prompted traders to seal bets of a 25 basis point (bps) rate cut in September and even boost expectations of a super-sized 50 bps rate cut. The dollar recovered a bit against the yen after data showed U.S. durable goods orders surged 9.9% in July, after falling in June. However, non-defense capital goods orders excluding aircraft, a closely-watched proxy for business spending plans, dipped 0.1% after a downwardly revised 0.5% increase in June. The risk-off sentiment also weighed on the Australian and New Zealand dollars and the Norwegian crown, which were all lower against the dollar. Sterling, meanwhile, slid 0.2% against the dollar to $1.3192 after jumping as far as $1.3229 on Friday for the first time in 17 months. Bank of England head Andrew Bailey said on Friday it was "too early to declare victory" over inflation, signalling a less aggressive stance on interest rate cuts than the Fed.

Gold – XAU

Gold on Monday made its intraday high of US$2526.71/oz and low of $2508.61/oz. Gold is up by 0.2500% at S$2517.64/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 2520-2560 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 Monday made its intraday high of US$30.16/oz and low of US$29.63/oz settle up by 0.221% at US$29.88/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 Monday made an intra‐day high of US$74.80/bbl, an intraday low of US$72.61/bbl, and settled up by 2.735% to close at US$74.69/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 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 77.10-80.00 with stop loss at 80.00; targeting 76.60-76.00-75.10 and 74.50-73.90-73.00. Buy above 76.60-72.00 with risk daily closing below 72.00, targeting 77.15-78.10-78.75 and 79.80-80.4080.90.

EUR/USD

EUR/USD on Monday made an intraday low of US$1.1149/EUR, a high of US$1.1200/EUR, and settled the day down by 0.218% to close at US$1.1160/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 1.1190-1.1400, targeting 1.1100-1.1020-1.0960 and 1.0850- 1.0785with stop-loss at daily closing above 1.1100. Buy above 1.1150-1.0785 with risk below 1.0400 targeting 1.1190-1.1250 and 1.1290-1.1340-1.1400.

GBP/USD

GBP/USD on Monday made an intra‐day low of US$1.3179/GBP, a high of US$1.3221/GBP, and settled the day down by 0.071% to close at US$1.3184/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 1.3150-1.2600 with a target of 1.3200-1.3310 and 1.3390-1.3450 with a stop loss closing below 1.2600. Sell in between 1.3210-1.3410 with targets at 1.3150-1.3100-1.3040 and 1.2950-1.2890-1.2790 with a stop loss of 1.3100.

USD/JPY

USD/JPY on Monday made an intra‐day low of JPY143.44/USD an intraday high of 146.64/USD, and settled the day up by 0.207% at JPY144.47/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 144.50-150.00 with risk above 150.00 targeting 144.20-145.00 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.