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Daily Market Lookup

  • The dollar slipped in early European trade Friday, with the euro showing strength as traders took heart from Thursday’s European Central Bank meeting. Sterling rebounded after a robust bounce in activity in July, but further losses look likely. The euro had a volatile ride during Thursday’s ECB meeting and subsequent press conference, but the overall tone Friday remains positive. That said, possibly to counter the impression that the bank had been unduly optimistic, the ECB's chief economist Philip Lane wrote in a blog post on Friday that: "There is no room for complacency." However, sterling remains weighed by the fraught state of negotiations with the European Union over its trading relationship after Britain fully leaves the bloc. The pound has lost 3.6% against the dollar this week and about as much against the euro as Brexit turmoil resurfaced. EU diplomats said the bloc could take legal action against Britain after U.K. officials presented a draft law earlier this week that would break the divorce treaty and in all likelihood end four years of Brexit talks.
  • The dollar was down on Friday morning in Asia, ending the week by giving up earlier gains. Investors had turned to the safe-haven asset after U.S. markets saw yet another stocks selloff overnight. The euro also seesawed, initially rising over comments made by European Central Bank (ECB) President Christine Lagarde emphasized that the bank does not target exchange rates. But Lagarde’s comments contradicting her earlier statement as well as the exchange rate’s impact on inflation, saw a subsequent retreat to dollars and slump in the single currency. The European Union threatened legal action against the U.K., encouraging the latter to abandon plans announced earlier in the week to break the Brexit divorce treaty. But with the U.K.’s insistence on moving forward with draft legislation potentially breaking international law “in a limited way”, threatens to undo four years of negotiations between the two parties. The pound, which has already grabbed headlines throughout the week, looks set to remain in the spotlight for a bit longer as the end-of-year Brexit deadline approaches. The ECB is set to release its outlook later in the day, with investors also looking to the U.K.’s GDP data as well as U.S. inflation for further guidance over the global economic recovery from COVID-19.
  • Gold fell on Friday morning in Asia after reaching a nine-day high overnight. The continuing U.S. stock selloff and fall in the dollar boosted prices, but Asian markets were mixed and pared back the precious metal’s gains. U.S. tech stocks continued their second week of selloffs on Thursday, combining with a drop in the dollar to give gold prices an overnight boost to $1,970.85. However, morning trading in Asia dragged the precious metal back down to under the $1,950 mark. The dollar fell due to further increased gains in the euro after the European Central Bank latest policy announcement and a stalemate in the U.S. Congress over pandemic relief funding, lending weight to gold’s rise. Oil fell in morning trade, with Brent oil futures losing ground to fall below $40.00 on reports of a rising U.S. crude inventory and continuing lack of global demand. In Europe, the euro rose sharply after European Central Bank President Christine Lagarde’s announcement of the latest policy. However, the U.K.’s continued intransigence on Brexit pulled the pound even further down, bringing it to levels not seen since 1985, barring the 2016 anomaly. Global COVID-19 cases continue to rise, leaving hopes of a faster economic recovery still intangible. There are over 28 million COVID-19 cases globally as of September 11, according to Johns Hopkins University data. Gold, a safe-haven popular during times of social and economic uncertainty, has seen substantial price increases since the onset of the COVID-19 pandemic with prices topping out above $2,072 in August.

 

 
Intraday RESISTANCE LEVELS
11th September 2020 R1 R2 R3
GOLD-XAU 1,954 1,971 1,989-2,010
Silver-XAG 27.00-28.10 29.00 29.80-30.50
Crude Oil 38.55 39.00 39.50-40.60
EURO/USD 1.1850 1.1900 1.1955-1.2000
GBP/USD 1.2900-1.2940 1.3050 1.3100-1.3210
USD/JPY 106.10-106.90 107.30 108.10-108.90

Intraday SUPPORTS LEVELS
11th September 2020 S1 S2 S3
GOLD-XAU 1,940-1,924 1,915 1,900-1,889
Silver-XAG 26.55-26.10 25.10 24.50-23.70
Crude Oil 37.10-36.40 36.00 35.40-34.75
EURO/USD 1.1800-1.1730 1.1690 1.1635-1.1600
GBP/USD 1.2820 1.2735-1.2650 1.2600
USD/JPY 105.50 104.90 104.30-103.90

Intra-Day Strategy (11th 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$1966.36/oz and low of US$1941.30/oz. Gold down 0.117% at US$1943.61/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 1940-1870 with risk below 1870, targeting 1954-1971 and 1989-2010-2023. Sell below 1954-2010 keeping stop loss closing above 2010, targeting 1940-1924 and 1900-1889.

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

Technical Indicators

Name   Value Action
14DRSI  

52.043

Buy
20-DMA   1946.73 Buy
50-DMA  

1915.40

Buy
100-DMA   1821.38 Buy
200-DMA   1699.33 Buy
STOCH(5,3)   66.503 Buy
MACD(12,26,9)   15.45 Sell

Silver - XAG

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Silver on Thursday made its intraday high of US$27.47/oz and low of US$26.68/oz settled down by 0.367% at US$26.84/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 Thursday made an intra‐day high of US38.66/bbl, intraday low of US$37.15/bbl and settled down by 2.266% to close at US$37.15/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 37.10-34.50 with risk daily closing below 34.50 and targeting 38.55-39.00 and 39.50-40.60-42.00. Sell in between 37.90-40.60 with stop loss at 41.00; targeting 37.10-38.55-39.00 and 39.50-40.60.

 
Intraday Support Levels
S1     37.10-36.40
S2     36.00
S3     35.40-34.75

Intraday Resistance Levels
R1     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 Thursday an intraday low of US$1.1798/EUR, high of US$1.1916/EUR and settled the day up by 0.103% to close at US$1.1814/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 1.1800-1.1600 with risk below 1.1600, targeting 1.1850-1.1900 and 1.1955-1.2050-1.2100. Sell below 1.1850-1.2250 targeting 1.1800-1.1730-1.1690 and 1.1635-1.1600 with stop-loss at daily closing above 1.2250.

 
Intraday Support Levels
S1     1.1800-1.1730
S2     1.1690
S3     1.1635-1.1600

Intraday  Resistance Levels
R1     1.1850
R2     1.1900
R3     1.1955-1.2000

TECHNICAL INDICATORS
Name   Value Action
14DRSI   52.032 Buy
20-DMA   1.1845 Buy
50-DMA   1.1688 Buy
100-DMA   1.1378 Buy
200-DMA   1.1197 Buy
STOCH(5,3)   31.758 Sell
MACD(12,26,9)   -0.0011 Buy

GBP/USD

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GBP/USD on Wednesday made an intra‐day low of US$1.2884/GBP, high of US$1.3022/GBP and settled the day down by 1.509% to close at US$1.2803/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 1.2900-1.3210 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     1.2820
S2     1.2735-1.2650
S3     1.2600

Intraday Resistance Levels
R1     1.2900-1.2940
R2     1.3050
R3     1.3100-1.3210

TECHNICAL INDICATORS
Name   Value Action
14DRSI  

43.904

Buy
20-DMA   1.3180 Sell
50-DMA   1.2911 Buy
100-DMA   1.2661 Buy
200-DMA   1.2734 Buy
STOCH(5,3)   17.940 Buy
MACD(12,26,9)   0.0124 Sell

USD/JPY

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USD/JPY on Wednesday made intra‐day low of JPY105.97/USD and made an intraday high of JPY106.29/USD and settled the day down by 0.046% at JPY106.12/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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