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Daily Market Lookup

  • The dollar gained in early European trade Wednesday, with the sharp selloff in U.S. equity markets prompting traders to ditch riskier currencies in favor of the world's reserve currency. EUR/USD slipped 0.1% to 1.1768, continuing to retreat from the 1.20 level it briefly touched last week before European Central Bank chief economist Philip Lane’s comments that the exchange rate mattered to monetary policy. With this in mind, Thursday’s ECB meeting looms large, with investors looking to closely monitor any comments on the euro given it has still risen 10% since coronavirus lockdowns started in March, even with the recent retreat. Elsewhere, worries about Brexit trade negotiations have pushed the pound down to levels last seen at the end of July. GBP/USD dipped 0.4% to $1.2939, while EUR/GBP rose 0.3% to 0.9093. Britain will set out its blueprint for life outside the European Union later Wednesday, publishing legislation a government minister acknowledged would break international law in a "specific and limited way". This is unlikely to be received favorably in European circles, increasing the likelihood of a messy end to the post-Brexit transition period at the end of the year. The dollar was up on Wednesday morning in Asia, clinging onto gains after U.S. markets saw a second rout in tech stocks in less than a week, giving the dollar a boost. The dollar also saw gains against the euro in the wake of ECB chief economist Philip Lane’s comments during the previous week that the exchange rate mattered to monetary policy. Thursday’s ECB meeting could see even more gains for the greenback, with investors looking to closely monitor any comments on the euro. The GBP/USD pair was down 0.23% to 1.2957 on the back of turbulent Brexit negotiations between the U.K. and the European Union. Investors are waiting for the U.K.’s blueprint laying out the terms life post-Brexit, expected later in the day. But fears over an amicable divorce between the two have mounted as the blueprint involves publishing legislation that reportedly breaks international law “in a limited way”, potentially souring talks and increasing the likelihood of a no-deal Brexit. Data released earlier in the day showed that the Consumer Price Index (CPI) and Producer Price Index for August rose 2.4% and fell 2% respectively year-on-year, with CPI rising 0.4% month-on-month. The readings all saw drops from the previous month, but hit forecast numbers prepared by Investing.com.
  • Oil dropped further on Wednesday morning in Asia following huge declines during the previous session, as COVID-19 cases resurge in several countries. COVID-19 cases continue to rise in India, U.K., Spain and several parts of the U.S., where the infection rates have not been contained for months. The number of global cases also continues to rise, approaching 27.5 million as of September 9, according to Johns Hopkins University data. The global pandemic is dashing hopes for economic recovery that would fuel demand for commodities from aviation gas to diesel. The Organization of the Petroleum Exporting Countries and allies, known as OPEC+ have helped support prices through record supply cuts. But grim economic figures have dampened the outlook for oil demand.China’s factory gate prices also fell for the seventh straight month in August. However, the rate of decline was the slowest since March, giving hope that the world’s second-largest economy is continuing its recovery. Oil futures fell again on Wednesday after a sharp slide in the previous session, as a rebound in COVID-19 cases in some countries undermined hopes for a steady recovery in global demand. Both major oil benchmarks are trading at around three-month lows The global health crisis continues to flare unabated with coronavirus cases rising in India, Great Britain, Spain and several parts of the United States. The outbreaks are threatening to slow a global economic recovery and reduce demand for fuels from aviation gas to diesel. Record supply cuts by the Organization of the Petroleum Exporting Countries and allies, known as OPEC+ have helped support prices, but with grim economic figures being reported almost daily, the outlook for demand for oil remains bleak. China's factory gate prices fell for a seventh straight month in August although at the slowest annual pace since March, suggesting industries in the world's second-biggest economy continued their recovery from the coronavirus-induced downturn.

 

 
Intraday RESISTANCE LEVELS
9th September 2020 R1 R2 R3
GOLD-XAU 1,940-1,954 1,971 1,989-2,010
Silver-XAG 27.00-28.10 29.00 29.80-30.50
Crude Oil 37.10-38.55 39.00 39.50-40.60
EURO/USD 1.1800-1.1850 1.1900 1.1955-1.2000
GBP/USD 1.3000-1.3050 1.3100 1.3210-1.3290
USD/JPY 106.10-106.90 107.30 108.10-108.90

Intraday SUPPORTS LEVELS
9th September 2020 S1 S2 S3
GOLD-XAU 1,924-1,915 1,900 1,889-1,880
Silver-XAG 26.55-26.10 25.10 24.50-23.70
Crude Oil 36.40-36.00 35.40 34.75-34.00
EURO/USD 1.1730 1.1690 1.1635-1.1600
GBP/USD 1.2940-1.2900 1.2820 1.2735
USD/JPY 105.50 104.90 104.30-103.90

Intra-Day Strategy (9th September 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$1940.83/oz and low of US$1906.39/oz. Gold up 0.108% at US$1931.06/oz.

Technicals in Focus:

In daily charts, prices are above 50DMA (1882) and breakage below will call for 1805. 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 overbought territory and giving positive crossover to bullish stance for intraday trade.

Trading Strategy: Buy on Dips

Based on the charts and explanations above; buy above 1924-1870 with risk below 1870, targeting 1940-1954-1971 and 1989-2010-2023. Sell below 1940-2010 keeping stop loss closing above 2010, targeting 1924-1900-1889.

 
Intraday Support Levels
S1     1,924-1,915
S2     1,900
S3     1,889-1,880
Intraday Resistance Levels
R1     1,940-1,954
R2     1,971
R3     1,989-2,010

Technical Indicators

Name   Value Action
14DRSI  

58.043

Buy
20-DMA   1966.45 Buy
50-DMA  

1882.25

Buy
100-DMA   1805.63 Buy
200-DMA   1682.51 Buy
STOCH(5,3)   88.503 Buy
MACD(12,26,9)   15.45 Sell

Silver - XAG

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Silver on Monday made its intraday high of US$27.08/oz and low of US$25.83/oz settled down by 0.804% at US$26.64/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 26.55-24.00 targeting 27.00-28.10-29.00 and 29.80-30.50-31.00, stop breakage below 22.50. Sell below 27.00-30.50 with stop loss above 30.50; targeting 26.55-26.10 and 25.00-24.30.

 
Intraday  Support Levels
S1     26.55-26.10
S2     25.10
S3     24.50-23.70

Intraday  Resistance Levels
R1     27.00-28.10
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 Tuesday made an intra‐day high of US39.56/bbl, intraday low of US$36.39/bbl and settled down by 5.970% to close at US$37.02/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 36.40-34.50 with risk daily closing below 34.50 and targeting 37.10-38.55-39.00 and 39.50-40.60-42.00. Sell in between 37.10-40.60 with stop loss at 41.00; targeting 37.10-38.55-39.00 and 39.50-40.60.

 
Intraday Support Levels
S1     36.40-36.00
S2     35.40
S3     34.75-34.00

Intraday Resistance Levels
R1     37.10-38.55
R2     39.00
R3     39.50-40.60

TECHNICAL INDICATORS
Name   Value Action
14DRSI   23.194 Sell
20-DMA   41.76 Sell
50-DMA   41.32 Sell
100-DMA   36.63 Buy
200-DMA   41.29 Sell
STOCH(5,3)   9.130 Buy
MACD(12,26,9)   0.738 Sell

EUR/USD

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EUR/USD on Tuesday an intraday low of US$1.1764/EUR, high of US$1.1826/EUR and settled the day down by 0.326% to close at US$1.1773/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 1.1730-1.1600 with risk below 1.1600, targeting 1.1800-1.1850-1.1900 and 1.1955-1.2050-1.2100. Sell below 1.1800-1.2250 targeting 1.1730-1.1690 and 1.1635-1.1600 with stop-loss at daily closing above 1.2250.

 
Intraday Support Levels
S1     1.1730
S2     1.1690
S3     1.1635-1.1600

Intraday  Resistance Levels
R1     1.1800-1.1850
R2     1.1900
R3     1.1955-1.2000

TECHNICAL INDICATORS
Name   Value Action
14DRSI   53.032 Buy
20-DMA   1.1834 Buy
50-DMA   1.1631 Buy
100-DMA   1.1329 Buy
200-DMA   1.1178 Buy
STOCH(5,3)   38.758 Sell
MACD(12,26,9)   -0.0011 Buy

GBP/USD

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GBP/USD on Tuesday made an intra‐day low of US$1.2979/GBP, high of US$1.3171/GBP and settled the day down by 1.34% to close at US$1.2980/GBP.

Technicals in Focus:

On daily charts, prices are sustaining above 20DMA (1.3134) is become immediate support 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 1.3080-1.3210 with targets at 1.2940-1.2900-1.2820 and 1.2735-1.2650 stop-loss should be 1.3210. Buy above 1.2940-1.2735 with targets 1.3180-1.3000-1.3050-1.3100 and 1.3210-1.3290 with stop loss closing below 1.3000.

 
Intraday Support Levels
S1     1.2940-1.2900
S2     1.2820
S3     1.2735

Intraday Resistance Levels
R1     1.3000-1.3050
R2     1.3100
R3     1.3210-1.3290

TECHNICAL INDICATORS
Name   Value Action
14DRSI  

59.904

Buy
20-DMA   1.3183 Buy
50-DMA   1.2911 Buy
100-DMA   1.2661 Sell
200-DMA   1.2734 Sell
STOCH(5,3)   36.940 Buy
MACD(12,26,9)   0.0124 Sell

USD/JPY

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USD/JPY on Tuesday made intra‐day low of JPY105.85/USD and made an intraday high of JPY106.37/USD and settled the day down by 0.185% at JPY106.01/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 106.50-103.00 with targets of 106.90-107.50 and 107.90-108.40-109.40 with stop below 105.00.

 
Intraday Support Levels
S1     105.50
S2     104.90
S3     104.30-103.90

INTRADAY RESISTANCE LEVELS
R1     106.10-106.90
R2     107.30
R3     108.10-108.90

TECHNICAL INDICATORS
Name   Value Action
14DRSI   50.904 Buy
20-DMA   106.08 Sell
50-DMA   106.46 Sell
100-DMA   106.92 Sell
200-DMA   107.92 Sell
STOCH(9,6)   46.253 Sell
MACD(12,26,9)   -0.099 Sell

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