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Daily Market Lookup

  • The dollar was down on Monday morning in Asia, but the focus centered on the British pound and Japanese yen. The pound rallied from its fall during the previous session over increasing fears of a hard Brexit. In Japan, the ruling party will vote in a new leader later in the day, with the winner widely expected to replace incumbent Prime Minister Shinzo Abe Investors await the U.S. Federal Reserve’s policy meeting, scheduled for Wednesday, with further monetary easing widely expected. But some investors cautioned against setting those expectations too high. Other central banks, including Bank of Japan and Bank of England, are due to announce their policy decisions on Thursday. The GBP/USD pair was up 0.22% to 1.2821, despite fears that the U.K. would exit from the European Union (EU) with no trade deal mounting and putting pressure on the pound. London acknowledged during the previous week that it could break international law “in a very specific and limited way.” The comments led to backlash from European Commission president Ursula von der Leyen, as well as former prime ministers. Tony Blair and John Major said on Sunday Britain must drop the “shocking” plan to pass legislation breaking its divorce treaty with the EU, in a breach of international law. The USD/JPY pair inched down 0.04% to 106.09 ahead of the ruling Liberal Democratic Party’s vote for a new leader, due to take place later in the day. Chief Cabinet Secretary Yoshihide Suga is predicted to win in a landslide victory, with the successor to Abe expected to be appointed on Wednesday. Investors expect few radical changes, with Suga widely expected continue Abe’s current policies if appointed.
  • The British pound flirted with a 1 1/2-month low against the dollar on Monday on fears about no-deal Brexit while investors waited for Japan's ruling party to choose a successor to Prime Minister Shinzo Abe. The pound was under pressure from fears that Britain will end its post-Brexit transition period with no trade agreements. London explicitly acknowledged last week that it could break international law by ignoring some parts of its European Union divorce treaty, prompting a rapid rebuke from the EU's chief executive. Former British prime ministers Tony Blair and John Major said on Sunday Britain must drop a "shocking" plan to pass legislation that breaks its divorce treaty with the European Union, in a breach of international law. Japanese Chief Cabinet Secretary Yoshihide Suga is poised to become head of Japan's ruling party on Monday and prime minister on Wednesday, succeeding Shinzo Abe, the nation's longest-serving leader. Because Suga has long been a loyal aide to Abe and has vowed to continue his policies, few market players expect radical changes. The common currency was supported after the European Central Bank showed no apparent sign of stemming the single currency's appreciation. Still, it faces an uphill battle in tackling the $1.20 barrier, with investors wary euro zone policy makers may not want to see the currency strengthen much beyond that level. Some euro zone countries, such as France and Spain, are reporting rises in coronavirus infections, in contrast to falls in the United States, clouding the outlook for economic recovery. The dollar's index against a basket of currencies stood little changed at 93.317 (=USD), with focus on the Federal Reserve's policy announcement on Wednesday. Expectations of further monetary easing by the Fed have been a drag on the dollar. The dollar index has lost more than 4% so far this quarter. But some analysts say markets may have gone too far in expecting further Fed stimulus.
  • Oil prices rose on Monday as a tropical storm in the Gulf of Mexico forced companies to evacuate rigs and halt production, but gains were kept in check by wider concerns about excess supply and falling fuel demand. Both contracts ended last week lower, falling for a second week in a row. Tropical Storm Sally gained in strength in the Gulf of Mexico west of Florida on Sunday and was poised to become a category 2 hurricane. The storm is disrupting oil production for the second time in less than a month after hurricane Laura swept through the region. Typically oil rises when production is shut, but with the coronavirus pandemic getting worse demand concerns are to the fore, while global supplies continue to rise. The U.S. is the world's biggest oil consumer and producer. In Libya, commander Khalifa Haftar committed to ending a months-long blockade of oil facilities, a move that would add more supplies to the market, although it was unclear if oil fields and ports would begin operations. The Organization of the Petroleum Exporting Countries (OPEC) and allies, a grouping known as OPEC+, meets on Sept. 17 to discuss compliance with deep cuts in production, although analysts don't expect further reductions to be made. Also supporting prices, drillers cut the number of oil and gas rigs for the first time in four weeks last week. Meanwhile, Libyan commander Khalifa Haftar on Saturday committed to ending a blockade of oil facilities that has been in place since January. The lifting of the blockade could add further oversupply pressure to the market, but Haftar’s statement did not specify whether oil fields and ports would also recommence operations. Meanwhile, investors are looking to OPEC’s monthly monitoring meeting, scheduled for Thursday, for further guidance.

 

 
Intraday RESISTANCE LEVELS
14th 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 1.3100-1.3210 1.3100-1.3210
USD/JPY 106.10-106.90 107.30 108.10-108.90

Intraday SUPPORTS LEVELS
14th 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 1.1635-1.1600 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 (14th 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 Friday made its intraday high of US$1954.67/oz and low of US$1937.12/oz. Gold up 0.232% at US$1940.19/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 Friday made its intraday high of US$27.02/oz and low of US$26.55/oz settled down by 0.376% at US$26.72/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 Friday made an intra‐day high of US38.03/bbl, intraday low of US$36.93/bbl and settled up by 0.722% to close at US$37.52/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 Friday an intraday low of US$1.1807/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     1.1635-1.1600
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 Friday made an intra‐day low of US$1.2761/GBP, high of US$1.2865/GBP and settled the day down by 0.0687% to close at US$1.2794/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     1.3100-1.3210
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 Friday made intra‐day low of JPY106.05/USD and made an intraday high of JPY106.26/USD and settled the day down by 0.030% at JPY106.15/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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