Daily Markets

• Oil prices slipped on Tuesday after data showed China's imports and exports fell much more than expected in July in a further sign of weak growth in the world's largest oil importer, although losses were limited by expected supply tightness. Oil imports to China in July were 43.69 million metric tons, or 10.29 million barrels per day (bpd), data from the General Administration of Customs showed on Tuesday. That was down 18.8%from imports in June, but still up 17% from a year ago. At the same time, China's overall imports dropped 12.4% and exports fell 14.5% from a year earlier. The pace of export decline was the fastest since February 2020 and worse than analysts' expectations. Despite the gloomy data, some analysts were still positive on China's fuel demand outlook for August to early October as crude processing rates remained high. It is the peak season for construction and manufacturing activities starting September and gasoline consumption should benefit from summer travel demand, said CMC Markets analyst Leon Li. Demand is expected to gradually decrease after October, he added. On the supply side, Saudi Arabia, the world's top exporter, has said it would extend a voluntary oil output cut of 1 million bpd for another month to include September, adding that it could extend the cut beyond that date or make a deeper cut to production after September. Russia also said it would cut oil exports by 300,000 bpd in September. Investors are also awaiting U.S. oil and fuel products inventory data. A Reuters poll on Monday showed forecasts for a 200,000-barrel drawdown in crude inventories and a rise in gasoline stocks of 200,000 barrels.

Gold – XAU

Gold on Monday made its intraday high of US$1946.65/oz and low of $1931.43/oz. Gold is down by 0.296% at US$1936.33/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. Additionally, 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 below 1946-2009 keeping stop loss closing above 2009, targeting 1954-1944-1934 and 1900-1894-1885. Buy in between 1930-1,871 with risk below 1874 targeting 1946-1960-1976 and 1985-2000-2009.

Silver - XAG

Silver on Monday made its intraday high of US$23.78/oz and low of US$23.13/oz settled up by 0.352% at US$23.63/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 23.00-18.30, targeting 25.00-25.90-26.30 and 26.90-27.50 with stop loss should be placed on the breakage below 18.00. Sell in between 23.40-27.50 with a stop loss above 27.50; targeting 23.00 and 22.05-21.60-21.00.

Oil - WTI

Crude Ol on Monday made an intra‐day high of US$82.88/bbl, an intraday low of US$81.22/bbl, and settled up by 0.200% to close at US82.17/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 81.20-85.00 with stop loss at 85.00; targeting 80.50-79.70-78.90 and 78.00-77.10-76.00. Buy above 80.50-77.40 with risk daily closing below 77.40; targeting 81.90-82.50-83.40 and 84.00-85.00

EUR/USD

EUR/USD on Monday made an intraday low of US$1.0964/EUR, a high of US$1.1014/EUR, and settled the day down by 0.071% to close at US$1.1001/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 1.0980-1.1390, targeting 1.0940-1.0900-1.0840 and 1.0790-1.0750-1.0660 with stop-loss at daily closing above 1.1390. Buy above 1.0940-1.0705 with risk below 1.0725 targeting 1.1060-1.1150 and 1.1210-1.1250-1.1290.

GBP/USD

GBP/USD on Monday made an intra‐day low of US$1.2712/GBP, a high of US$1.2788/GBP, and settled the day up by 0.309% to close at US$1.2782/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 RSI bases. 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 1.2710-1.2400 with a target of 1.2800-1.2855-1.2900 and 1.2990-1.3050-1.3140 with a stop loss closing below 1.2400. Sell in between 1.2800-1.3200 with targets at 1.2710-1.2650-1.2590 and 1.2520-1.2450 with a stop loss should be 1.3140.

USD/JPY

USD/JPY on Monday made an intra‐day low of JPY141.50/USD, an intraday high of JPY142.57/USD, and settled the day up by 0.573% at JPY142.46/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 143.20-146.00 with risk above 146.00 targeting 139.50-138.30-137.50 and 136.90-136.40-135.50. Long positions above 141.00-134.90 with targets of 142.20-143.00-144.20 and 145.00-146.00with stops below 134.00.