Just Perfect Markets

Daily Market Lookup

  • The dollar edged lower in early European trade Tuesday, with traders keeping a risk-on tone ahead of this week’s Federal Reserve meeting. EUR/USD up 0.2% at 1.1889, ahead of the release of Germany's ZEW index for September, the first of the major business surveys to be released this month. AstraZeneca (NYSE:AZN) resuming the U.K. clinical trials of its COVID-19 vaccine candidate, and Pfizer (NYSE:PFE) looking to expand phase 3 trials for their own candidate have helped the market take a much more positive attitude towards risk. Still, investors will exhibit some caution ahead of the Federal Reserve’s two-day policy meeting, starting later Tuesday, after it adopted a new approach last month to meeting its 2% inflation target. The Fed will also update its projections for the economic and interest rate outlook, which will include forecasts for 2023 for the first time. Elsewhere, GBP/USD edged up 0.1% to 1.2858, despite the continuing turmoil surrounding Brexit negotiations and a weakening in the country’s employment market. An initial parliamentary vote on the U.K.’s controversial bill to violate the Brexit agreement with the European Union passed on Tuesday, but not without heated debate. The EU has warned that the passage of the U.K.’s bill would lead to a collapse in negotiations, increasing the possibility of a no-deal Brexit. Britain’s labor market took a turn for the worse in the summer, even as the economy gradually reopened. Employment fell by 102,000, the first decline since April, while the July unemployment figure climbed to 4.1%, from 3.9% the previous month. Retail sales increased 0.5% year-on-year in August and industrial production jumped 45.6% year-on-year. Both figures beat expectations, with retail sales, in particular, reporting their first increase in 2020.
  • The dollar was down on Tuesday morning in Asia, with investors turning from the safe-haven asset as hopes of a COVID-19 vaccine rise. The USD/JPY pair inched down 0.07% to 105.65. Yoshihide Suga looks set to replace incumbent Prime Minister Shinzo Abe after comfortably winning the leadership of the ruling Liberal Democratic Party (LDP) on Monday, pending a parliamentary vote on Wednesday. The GBP/USD pair edged up 0.14% to 1.2862, despite the continuing turmoil surrounding Brexit negotiations. However, the pound remains volatile, with an initial parliamentary vote on the U.K.’s controversial bill to violate the Brexit agreement with the European Union (EU) passed on Tuesday. The EU warned that the passage of the U.K.’s bill would lead to a collapse in negotiations, increasing the possibility of a no-deal Brexit. Meanwhile, investors are looking to the U.S. Federal Reserve’s policy meeting on Wednesday, with central banks in Japan and the U.K. to hand down their own policy decisions on Thursday. But some analysts say markets may have gone too far in expecting further Fed stimulus.
  • Oil prices edged lower on Tuesday as worries over a slow recovery in global fuel demand, depressed by the coronavirus pandemic, chimed with bleak outlook warnings by major oil producers. Still, losses were limited by short-covering ahead of a key meeting later this week of the Organization of the Petroleum Exporting Countries (OPEC) and its allies, known as OPEC+, to discuss compliance with their programme of ambitious output cuts to prop up prices. Major oil industry producers and traders are forecasting a bleak future for worldwide fuel demand, due to the pandemic's ongoing assault on the global economy, with OPEC downgrading its oil demand forecast and BP (L:BP) saying demand might have peaked in 2019. World oil demand will tumble by 9.46 million barrels per day (bpd) this year, OPEC said in a monthly report, more than the 9.06 million bpd decline expected a month ago. Worries over an increase in global supply after Libyan commander Khalifa Haftar committed to ending a long-running blockade of oil facilities also dented risk appetite. The OPEC+ joint ministerial monitoring committee (JMMC) is meeting on Thursday to discuss compliance with deep cuts in production, although analysts do not expect further reductions to be made despite Brent prices falling below $40 per barrel in recent days. Concerns over supply disruptions in the United States from an impending storm also provided some price support. Energy companies, ports and refiners raced on Monday to shut down as Hurricane Sally grew stronger while lumbering toward the central U.S. Gulf Coast, the second significant hurricane to shutter oil and gas activity in the past month. Meanwhile, China's crude oil throughput in August rose from a year ago, reaching the second-highest on record, as refineries worked to digest record imports brought in earlier this year. Sally will sweep the eastern edge of the offshore production area, halting some oil and natural gas drilling for a short time and adding further disruption to the industry. Hurricanes Marco and Laura, as well as Tropical Storm Cristobal, all disrupted work across the Gulf this season.

 

 
Intraday RESISTANCE LEVELS
15th September 2020 R1 R2 R3
GOLD-XAU 1,971 1,989-2,010 2,023
Silver-XAG 28.10 29.00 29.80-30.50
Crude Oil 38.55 39.00 39.50-40.60
EURO/USD 1.1900 1.1955-1.2000 1.2090
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
15th September 2020 S1 S2 S3
GOLD-XAU 1,954-1,940 1,924 1,915-1,900
Silver-XAG 27.00-26.55 26.10 25.10-24.50
Crude Oil 37.10-36.40 36.00 35.40-34.75
EURO/USD 1.1850-1.1800 1.1730 1.1690-1.1635
GBP/USD 1.2820 1.2735-1.2650 1.2600
USD/JPY 105.50 104.90 104.30-103.90

Intra-Day Strategy (15th 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

Just Perfect Markets

Gold on Monday made its intraday high of US$1962.41/oz and low of US$1936.30/oz. Gold up 0.789% at US$1955.99/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 1954-1870 with risk below 1890, targeting 1971-1989 and 2010-2023. Sell below 1971-2010 keeping stop loss closing above 2010, targeting 1940-1924 and 1900-1889.

 
Intraday Support Levels
S1     1,954-1,940
S2     1,924
S3     1,915-1,900
Intraday Resistance Levels
R1     1,971
R2     1,989-2,010
R3     2,023

Technical Indicators

Name   Value Action
14DRSI  

56.043

Buy
20-DMA   1943.73 Buy
50-DMA  

1925.40

Buy
100-DMA   1828.38 Buy
200-DMA   1706.50 Buy
STOCH(5,3)   77.503 Buy
MACD(12,26,9)   5.45 Sell

Silver - XAG

Just Perfect Markets

Silver on Monday made its intraday high of US$27.29/oz and low of US$26.64/oz settled down by 1.524% at US$27.09/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 27.00-24.00 targeting 28.10-29.00 and 29.80-30.50-31.00, stop breakage below 24.00. Sell below 28.00-30.50 with stop loss above 30.50; targeting 27.10-26.55-26.10 and 25.00-24.30.

 
Intraday  Support Levels
S1     27.00-26.55
S2     26.10
S3     25.10-24.50

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

Just Perfect Markets

Crude Oil on Monday made an intra‐day high of US37.90/bbl, intraday low of US$37.05/bbl and settled down by 0.401% to close at US$37.41/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

Just Perfect Markets

EUR/USD on Monday an intraday low of US$1.1831/EUR, high of US$1.1887/EUR and settled the day up by 0.247% to close at US$1.1864/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 1.1850-1.1600 with risk below 1.1600, targeting 1.1900 and 1.1955-1.2050-1.2100. Sell below 1.1900-1.2250 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     1.1850-1.1800
S2     1.1730
S3     1.1690-1.1635

Intraday  Resistance Levels
R1     1.1900
R2     1.1955-1.2000
R3     1.2090

TECHNICAL INDICATORS
Name   Value Action
14DRSI   58.032 Buy
20-DMA   1.1842 Buy
50-DMA   1.1724 Buy
100-DMA   1.1409 Buy
200-DMA   1.1209 Buy
STOCH(5,3)   67.758 Sell
MACD(12,26,9)   -0.0011 Buy

GBP/USD

Just Perfect Markets

GBP/USD on Monday made an intra‐day low of US$1.2765/GBP, high of US$1.2918/GBP and settled the day up by 0.550% to close at US$1.2845/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

Just Perfect Markets

USD/JPY on Monday made intra‐day low of JPY105.54/USD and made an intraday high of JPY106.15/USD and settled the day down by 0.329% at JPY105.71/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

Just Perfect Markets