Daily Markets

• The dollar slipped against most major currencies on Wednesday after July U.S. job openings data signaled a softening labor market, tilting the odds further in favor of larger interest rate cuts by the Federal Reserve. Traders boosted bets that the Fed will deliver a half-a-percentage-point reduction at its next meeting, following news that job openings in July fell to the lowest level in 3-1/2 years. Friday's U.S. payrolls report could offer further clues on the timing and pace of Fed rate cuts. U.S. stocks remained weak after Tuesday's sharp sell-off sparked by concerns about the U.S. economy and tech sector valuations. Soft U.S. manufacturing data released on Tuesday helped fan worries about a hard landing for the world's biggest economy. The dollar, which tumbled more than 2% against a basket of currencies in August, has steadied as rising volatility in global financial markets lifted demand for safer currencies. Economists surveyed by Reuters expect Friday's report to show an increase of 165,000 U.S. jobs in August, after a rise of 114,000 in July. Investors will also keep a close eye on jobless claims on Thursday. Euro zone business activity received a boost from France hosting the Olympic Games last month but the malaise in the bloc is likely to return once the Paralympics wraps up as demand remains weak, a survey showed.

Gold – XAU

Gold on made Wednesday its intraday high of US$2500.11/oz and low of $2471.78/oz. Gold is up by 0.099% at S$2495.30/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 Wednesday made its intraday high of US$28.33/oz and low of US$27.75/oz settle up by 0.792% at US$28.24/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 28.00-25.90, targeting 29.00-29.70 and 30.50-31.10- 31.90 with stop loss should be placed on the breakage below 25.00. Sell in between 29.00-31.00 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$70.93/bbl, an intraday low of US$68.40/bbl, and settled down by 1.44% to close at US$68.75/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 70.00-73.90 with stop loss at 80.00; targeting 69.40-68.50-67.90 and 67.30-66.00. Buy above 70.00-66.00 with risk daily closing below 66.00, targeting 70.00-70.60-71.30 and 72.00-73.10-73.90.

EUR/USD

EUR/USD on Wednesday made an intraday low of US$1.1031/EUR, a high of US$1.1094/EUR, and settled the day up by 0.351% to close at US$1.1081/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 1.1100-1.1400, targeting 1.1100-1.1020-1.0960 and 1.0850- 1.0785with stop-loss at daily closing above 1.1100. Buy above 1.1020-1.0785 with risk below 1.0400 targeting 1.1100-1.1190-1.1250 and 1.1290-1.1340-1.1400.

GBP/USD

GBP/USD on Wednesday made an intra‐day low of US$1.3100/GBP, a high of US$1.3174/GBP, and settled the day up by 0.248% to close at US$1.3144/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 1.3120-1.2600 with a target of 1.3200-1.3310 and 1.3390-1.3450 with a stop loss closing below 1.2600. Sell in between 1.3190-1.3410 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 Wednesday made an intra‐day low of JPY143.72/USD an intraday high of 145.54/USD, and settled the day down by 0.116% at JPY143.72/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 144.0-150.00 with risk above 150.00 targeting 143.60-143.00 and 142.50-141.90-141.00. Long positions above 143.60-141.00 with targets of 144.20-144.60-145.45 and 146.00-146.90-147.50-148.00 with sto42ps below 146.00.