Daily Markets

• The dollar hovered near a one-week low versus major peers on Wednesday as the U.S. government entered a shutdown that is likely to delay the release of crucial jobs data. Government funding expired at midnight in Washington (0400 GMT) after Republicans and Democrats failed to agree a last-minute interim deal. Senate Republican Leader John Thune said the chamber would vote again on the House-passed measure on Wednesday. The Senate is due to convene at 1400 GMT. U.S. President Donald Trump warned congressional Democrats on Tuesday that letting the federal government shut down would allow his administration to take "irreversible" actions including closing programs important to them. The U.S. Labor and Commerce departments said their statistics agencies would halt data releases in the event of a partial shutdown. That includes Friday’s scheduled nonfarm payrolls release, which is seen by markets as key in determining whether a Federal Reserve interest rate cut is likely at the end of this month. Overnight, a mixed reading for the Bureau of Labor Statistics’ Job Openings and Labor Turnover Survey, or JOLTS, pressured the dollar. The report showed U.S. job openings increased marginally in August while hiring declined, consistent with a softening labour market. In the absence of official data, more emphasis will fall on private-sector economic indicators. The length of any shutdown may be key for markets, as the Fed’s next policy decision on October 29 remains weeks away. Traders currently see a quarter-point cut then as a near certainty, with market-implied odds of around 95%, according to LSEG data. Traders largely ignored the release of the Bank of Japan’s quarterly "tankan" corporate sentiment survey on Wednesday, even though central bank policymakers had flagged it as key to determining the timing of a resumption of rate hikes. Confidence among big Japanese manufacturers improved for the second straight quarter and firms maintained their upbeat spending plans, the survey showed. BOJ officials have tilted more hawkish in recent days, including formerly dovish board member Asahi Noguchi, who said on Monday that the need for policy tightening was increasing "more than ever." BOJ Deputy Governor Shinichi Uchida and Governor Kazuo Ueda are due to give speeches on Thursday and Friday, respectively.

Gold – XAU

Gold on Tuesday made its intraday high of US$3871.66/oz and low of $3793.03/oz. God is up by 0.662% at US$3858.19/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 3860-3925 keeping stop loss closing above 3925, targeting 3851-3840-3829 and 3811-3800-3791-3780. Buy in between 3851-3771 with risk below 3771 targeting 3860-3878-3885 and 3894-3905-3915-3925.

Silver - XAG

Silver on Tuesday its intraday high of US$47.15/oz and low of US$45.79/oz settle up by 0.618% at US$46.62/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 46.60-40.00, targeting 47.00-47.60-48.15 and 48.75-49.30-49.80-50.10 with stop loss should be placed on the breakage below 40.00. Sell in between 47.00-50.10 with a stop loss above 50.00 targeting 45.90-45.40-45.00-44.25 and 44.00-43.60-42.60-41.40.

Oil - WTI

Crude Oil on Tuesday high of US$63.05/bbl, an intraday low of US$61.83/bbl, and settled down by 1.145% to close at US$62.20/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 62.50-70.00 with stop loss at 70.00; targeting 62.05-61.50-60.60 and 60.05-59.40. Buy above 62.05-59.00 with risk daily closing below 60.00, targeting 65.40-66.20-67.20 and 67.80-68.35-69.00.

EUR/USD

EUR/USD on Tuesday an intraday low of US$1.17115/EUR, a high of US$1.1761/EUR, and settled the day up by 0.057% to close at US$1.1732/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 1.1790-1.1990, targeting 1.1790-1.1755-1.1640-1.1590 and 1.1545-1.1500-1.1470 with stop-loss at daily closing above 1.1990. Buy above 1.1710-1.1110 with risk below 1.1100 targeting 1.1790-1.1850-1.1890-1.1920 and 1.1950-1.1990-1.2040.

GBP/USD

GBP/USD on Tuesday low of US$1.3412/GBP, a high of US$1.3466/GBP, and settled the day up by 0.157% to close at US$1.3444/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 1.3430-1.3040 with a target of 1.3470-1.3550 and 1.3600-1.3625-1.3680-1.3720 with a stop loss closing below 1.3040. Sell in between 1.3525-1.3850 with targets at 1.3479-1.3410-1.3370-1.3310 and 1.3260-1.3200-1.3160 with a stop loss of 1.3850.

USD/JPY

USD/JPY on Tuesday an intra‐day low of JPY147.64/USD an intraday high of 148.83/USD, and settled the day down by 0.162% at JPY147.87/USD.

Technicals in Focus:

In daily charts, JPY is sustaining above 100DMA (152.35), 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 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 147.90-154.00 with risk above 154.00 targeting 148.10-147.40 and 146.60-146.10-145.20-144.70. Long positions above 147.30-144.00 with targets of 148.10-148.70-149.35-149.90 and 150.50-151.20-151.60 with stops below 144.00.