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Daily Market Lookup

  • The dollar held gains against major currencies on Friday, after the Federal Reserve's aggressive new strategy to lift employment and increased tolerance for higher inflation pushed U.S. bond yields up. Speaking at the Fed's Jackson Hole symposium, which was held virtually this year, Chair Jerome Powell said the central bank will seek to achieve 2% inflation on average, so that periods of super-low inflation would likely be followed by an effort to lift inflation "moderately above 2% for some time," and to ensure economic recovery and job creation. Following Powell's comments, the dollar initially fell sharply against the yen and the euro, but reversed as longer-term U.S. Treasury yields bounced back to their highest levels in months. Traders in the yen now shift their focus to Japanese Prime Minister Shinzo Abe's news conference later in the day, amid growing concerns over his health. Ruling party officials have said Abe's health is fine, but his recent hospital visits, one of which ran nearly eight hours, have fanned speculation whether he will be able to continue in the job until the end of his term in September 2021. After falling sharply since March, the dollar recently has showed signs of stabilizing as the surge in Covid-19 cases across the U.S. appears appears to be abating. The rebound in the greenback may persist as the threat of a second wave of the virus in other countries, which will hurt economic growth, remains likely. "The economic figures for June and July reflect the significant positive impact of a number of public health restrictions being lifted. However, the situation hasn’t fully returned to normal, and several industries are still struggling to make up for lost ground. What’s more, the risk of a second wave of COVID-19 in the fall still appears realistic without a vaccine or an effective treatment. Under these circumstances, investors could be more cautious in the coming months, which leads us to believe in a rebound of the U.S. dollar," Desjardins said.
  • The dollar was down on Friday morning in Asa, giving up some of its earlier gains as the rally from the U.S. Federal Reserve’s new strategy to increase employment, as well as tolerance for higher inflation, wore off. Speaking at the Jackson Hole symposium on Thursday, U.S. Federal Reserve Chairman Jerome Powell said that the Fed would target an average inflation rate of 2%, countering years of super-low inflation Meanwhile, the USD/JPY pair was up 0.26% to 106.83. Investors are now awaiting Japanese Prime Minister Shinzo Abe’s press conference, due to take place later in the day, where Abe is widely expected to address the state of his health and whether he will remain in the post.
  • Oil was flat on Friday morning in Asia, after Hurricane Laura roared through Louisiana and Texas without causing any apparent major damage to the states’ oil infrastructure. As Laura made landfall on Thursday with 150-mile-per hour winds, the weaker-than-predicted storm surge spared the Gulf of Mexico’s rigs and refineries from the anticipated damage. More than 80% of the region’s production, as well as 15% of U.S. processing capacity, was shut down in preparation for Laura’s arrival, leading to an uptick in oil and gasoline prices earlier in the week. The Port of Houston, a major U.S. crude oil export hub accounting for around 600,000 barrels per day (bpd) of shipments, was re-opened as of Friday. A Kpler estimate said that seaborne crude export capacity could be reduced by nearly 1 million bpd due to the earlier closures of Houston, Beaumont and Arthur ports. Meanwhile, investors will now refocus their attention to COVID-19, and its impact on fuel demand recovery. But the pace of recovery remains slow, with diesel sales in the U.K. still at around 11% below pre-lockdown levels and half of India’s trucking fleet still grounded.
  • Gold was up on Friday morning, with the sheen from the U.S. Federal Reserve's new monetary policy overshadowed by data suggesting an COVID-19-induced economic slump. Fed Chairman Jerome Powell unveiled the Fed’s new monetary policy strategy during his speech at the Jackson Hole symposium on Thursday. The strategy aims to address “shortfalls” from the “broad-based and inclusive goal” of full employment and promises to aim for 2% inflation on average. Gold initially faced pressure as longer-term U.S. Treasury yields jumped to their highest level in months and strengthened the dollar. But after U.S. data released on Thursday showed that 1.006 million initial jobless claims were filed over the past week, gains were capped over fears of a stall in the labor market recovery. The number of COVID-19 cases continue their unceasing rise, with over 24.4 million cases globally as of August 28, according to Johns Hopkins University data. Meanwhile, the U.S. Congress still has not reached a consensus over the latest stimulus measures. A Thursday phone call between U.S. House of Representatives Speaker Nancy Pelosi said after talks with White House Chief of Staff Mark Meadows ended without an agreement being reached.

 

 
Intraday RESISTANCE LEVELS
28th August 2020 R1 R2 R3
GOLD-XAU 1,940 1,954 1,971-1,989
Silver-XAG 28.10 29.00 29.80-30.50
Crude Oil 44.10 45.00-46.30 47.00
EURO/USD 1.1850-1.1900 1.1955 1.2000-1.2050
GBP/USD 1.3250 1.3290-1.3350 1.3410
USD/JPY 106.90 107.30 108.10-108.90

Intraday SUPPORTS LEVELS
28th August 2020 S1 S2 S3
GOLD-XAU 1924-1,915 1,901 1,885-1,874
Silver-XAG 27.00-26.10 26.55 25.10-24.30
Crude Oil 43.15-42.00 41.00 40.60-39.50
EURO/USD 1.1800-1.1730 1.1690 1.1610-1.1550
GBP/USD 1.3190-1.3100 1.3050 1.3015-1.2950
USD/JPY 106.10-105.50 104.90 104.30-103.90

Intra-Day Strategy (28th August 2020)
GOLD-XAU Buy on Dips
Silver-XAG Buy on Dips
Crude Oil Neutral to Buy
EUR/USD Neutral to Buy
GBP/USD Neutral to Sell
USD/JPY Neutral to Sell

Gold – XAU

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Gold on Thursday made its intraday high of US$1976.58/oz and low of US$1909.85/oz. Gold down 1.272% at US$1928.98/oz.

Technicals in Focus:

In daily charts, prices are above 50DMA (1642) and breakage below will call for 1600. MACD is above zero line and histograms are also increasing trend and it will bring upward stance in the upcoming sessions. RSI is in neutral region and more upside is expected before it gets stretched. Stochastic Oscillator is in oversold territory and giving negative crossover to bearish stance for intraday trade.

Trading Strategy: Buy on Dips

Based on the charts and explanations above; buy above 1924-1867 with risk below 1867, targeting 1940-1954 and 1971-1989-2010. Sell below 1954-2010 keeping stop loss closing above 2010, targeting 1900-1889 and 1881-1866.

 
Intraday Support Levels
S1     1924-1,915
S2     1,901
S3     1,885-1,874
Intraday Resistance Levels
R1     1,940
R2     1,954
R3     1,971-1,989

Technical Indicators

Name   Value Action
14DRSI  

51.043

Buy
20-DMA   1967.45 Buy
50-DMA  

1883.25

Buy
100-DMA   1799.63 Buy
200-DMA   1677.51 Buy
STOCH(5,3)   54.503 Buy
MACD(12,26,9)   12.45 Sell

Silver - XAG

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Silver on Thursday made its intraday high of US$27.91/oz and low of US$26.46/oz settled down by 1.886% at US$26.94/oz.

Technicals in Focus:

On daily charts, silver is sustaining above 20DMA (21.60), breakage below will lead to 19.40. MACD is above zero line and histograms are increasing trend and it will bring bullish stance in the upcoming sessions. RSI is approaching overbought region, indicating buy signal for now. The Stochastic Oscillator is in neutral region and giving positive crossover to show upside move for the intraday trade.

Trading Strategy: Buy on Dips

Based on the charts and explanations above, buy above 27.10-24.50 targeting 28.20-29.00 and 29.80-30.50, stop breakage below 22.50. Sell below 28.00-30.00 with stop loss above 30.00; targeting 27.20-26.10-25.00 and 24.30-23.35.

 
Intraday  Support Levels
S1     27.00-26.10
S2     26.55
S3     25.10-24.30

Intraday  Resistance Levels
R1     28.10
R2     29.00
R3     29.80-30.50

TECHNICAL INDICATORS
Name   Value Action
14DRSI   60.514 Buy
20-DMA   24.90 Buy
50-DMA   20.81 Buy
100-DMA   18.30 Buy
200-DMA   17.66 Buy
STOCH(5,3)   49.268 Buy
MACD(12,26,9)   1.914 Buy

Oil - WTI

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Crude Oil on Thursday made an intra‐day high of US43.58/bbl, intraday low of US$42.45/bbl and settled down by 1.276% to close at US$43.01/bbl.

Technicals in Focus:

On daily charts, oil is sustaining below its 50DMA i.e. 40.00 which is a resistance level and breakage above will call for 44.00. MACD is below zero line and histograms are in increasing mode will bring bullish stance in the upcoming sessions. The Stochastic Oscillator is in overbought region and giving positive crossover for confirmation of bullish stance; while the RSI is in neutral region and more downside can be expected to reach the oversold region, which is highly probable.

Trading Strategy: Neutral to Buy

Based on the charts and explanations above; buy above 43.15-38.50 with risk daily closing below 36.65 and targeting 44.10-45.00 and 46.30-47.00. Sell in between 44.10-47.30 with stop loss at 47.30; targeting 43.15-42.00-41.00 and 40.60-39.50-38.50.

 
Intraday Support Levels
S1     43.15-42.00
S2     41.00
S3     40.60-39.50

Intraday Resistance Levels
R1     44.10
R2     45.00-46.30
R3     47.00

TECHNICAL INDICATORS
Name   Value Action
14DRSI   63.099 Sell
20-DMA   42.14 Buy
50-DMA   41.02 Buy
100-DMA   34.96 Buy
200-DMA   42.11 Sell
STOCH(5,3)   78.130 Buy
MACD(12,26,9)   0.738 Sell

EUR/USD

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EUR/USD on Thursday an intraday low of US$1.1761/EUR, high of US$1.1901/EUR and settled the day down by 0.067% to close at US$1.1821/EUR.

Technicals in Focus:

On daily charts, prices are sustaining below 100DMA (1.1031), which become immediate resistance level, break above will target 1.1090. MACD is below zero line but histograms are increasing mode which will bring bullish view. Stochastic is in oversold territory and giving negative crossovers to signal for bearish outlook for intraday. 14D RSI is currently in neutral region and giving no directions to consider right now.

Trading Strategy: Neutral to Buy

Buy above 1.1800-1.1540 with risk below 1.1540, targeting 1.1850-1.1900-1.1950 and 1.2000-1.2100. Sell below 1.1850-1.2050 targeting 1.1800-1.1730-1.1650 and 1.1610-1.1500 with stop-loss at daily closing above 1.1950.

 
Intraday Support Levels
S1     1.1800-1.1730
S2     1.1690
S3     1.1610-1.1550

Intraday  Resistance Levels
R1     1.1850-1.1900
R2     1.1955
R3     1.2000-1.2050

TECHNICAL INDICATORS
Name   Value Action
14DRSI   57.032 Buy
20-DMA   1.1811 Buy
50-DMA   1.1531 Buy
100-DMA   1.1253 Buy
200-DMA   1.1145 Buy
STOCH(5,3)   28.758 Sell
MACD(12,26,9)   -0.0011 Buy

GBP/USD

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GBP/USD on Thursday made an intra‐day low of US$1.3160/GBP, high of US$1.3283/GBP and settled the day down by 0.075% to close at US$1.3198/GBP.

Technicals in Focus:

On daily charts, prices are sustaining below 200DMA (1.2647) is become major resistance level. 14-D RSI is currently in neutral region and direction is difficult to predict on RSI bases. The Stochastic Oscillator is in oversold territory and giving negative crossover to confirm bearish stance. MACD is above zero line but histograms are increasing lead to upward movement.

Trading Strategy: Neutral to Sell

Based on the charts and explanations above; sell below 1.3260-1.3450 with targets at 1.3190-1.3100-1.3050 and 1.3015-1.2950-1.2870 stop-loss should be 1.3450. Buy above 1.3190-1.2840 with targets 1.3250-1.3290 and 1.3350-1.3400 with stop loss closing below 1.2840.

 
Intraday Support Levels
S1     1.3190-1.3100
S2     1.3050
S3     1.3015-1.2950

Intraday Resistance Levels
R1     1.3250
R2     1.3290-1.3350
R3     1.3410

TECHNICAL INDICATORS
Name   Value Action
14DRSI  

70.904

Buy
20-DMA   1.2871 Buy
50-DMA   1.2666 Buy
100-DMA   1.2501 Sell
200-DMA   1.2705 Sell
STOCH(5,3)   52.940 Sell
MACD(12,26,9)   0.0305 Sell

USD/JPY

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USD/JPY on Thursday made intra‐day low of JPY105.59/USD and made an intraday high of JPY106.69/USD and settled the day up by 0.548% at JPY106.55/USD.

Technicals in Focus:

In daily charts, JPY is sustaining above 200DMA (108.30), which is initial support on the daily chart. 14-D RSI is currently in overbought region and chances of downward are expected based on RSI. MACD is above zero line but histograms are in decreasing mode which might lead to downward movement. The Stochastic Oscillator is in neutral territory and signaling to sell as it has given negative crossover to confirm bearish stance.

Trading Strategy: Neutral to Sell

Sell below 106.50-111.00 with risk above 111.00 targeting 106.10-105.50-104.90 and 104.50-103.90-103.10. Long positions above 106.10-103.00 with targets of 106.00-106.50-106.90 and 107.90-108.40-109.40 with stop below 105.00.

 
Intraday Support Levels
S1     106.10-105.50
S2     104.90
S3     104.30-103.90

INTRADAY RESISTANCE LEVELS
R1     106.90
R2     107.30
R3     108.10-108.90

TECHNICAL INDICATORS
Name   Value Action
14DRSI   50.904 Buy
20-DMA   105.98 Sell
50-DMA   106.55 Sell
100-DMA   107.02 Sell
200-DMA   107.99 Sell
STOCH(9,6)   80.253 Sell
MACD(12,26,9)   -0.1448 Sell

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