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Daily Market Lookup

  • Asian stocks extended gains on Thursday as a sharp rebound on Wall Street and gains in battered Chinese shares eased fears of a deep and protracted global market rout, while the dollar rallied as risk aversion eased. Sentiment was also supported by comments from New York Fed President William Dudley on Wednesday who said the prospect of a September rate hike "seems less compelling" than it was only weeks ago given the threat posed to the U.S. economy by recent market turmoil. Still, some investors remained on edge, after European shares slid nearly 2 percent overnight and ahead of more readings on China's factory and services sector activity early next week. Markets around the world plunged earlier in the week as a slump in Shanghai shares fueled worries over China's economic health, but some calm returned after Beijing rolled out strong policy easing steps late on Tuesday.
  • The greenback subsequently rallied as ebbing risk aversion reduced demand for the yen and euro, which had been bought as safe haven plays during the recent equity selling. The dollar got an additional boost from upbeat U.S. durable orders data, which backed the view that the Fed would remain on track to eventually raise interest rates as the U.S. economy continues to recover. The common currency was also hurt by comments from a senior European Central Bank official. Peter Praet said the risk of the ECB missing its inflation target has increased due to commodity price falls and weakness in some overseas economies.
  • Crude oil prices jumped in Asia on Thursday as investors see recent liquidity and policy easing moves by China as a spur to demand. Ahead, the market is looking to rig count data in the U.S> at the end of the week. According to industry research group Baker Hughes (NYSE:BHI), the number of rigs drilling for oil in the U.S. increased by two last week to 674, the fifth straight weekly gain. The rig count dropped for 29 straight weeks before rebounding modestly in recent weeks. Overnight, West Texas Intermediate oil futures added to losses on Wednesday, after data showed that oil product supplies in the U.S. rose sharply last week, underlining concerns over weak demand. U.S. Energy Information Administration said in its weekly report that U.S. crude oil inventories fell by 5.5 million barrels in the week ended August 21. Market analysts' expected a crude-stock rise of 1.1 million, while the American Petroleum Institute late Tuesday reported a decline of 7.3 million barrels. Supplies at Cushing, Oklahoma, the key delivery point for Nymex crude, increased by 256,000 barrels last week, following a rise of 326,000 barrels in the preceding week.Total U.S. crude oil inventories stood at 450.8 million barrels as of last week, remaining near levels not seen for this time of year in at least the last 80 years. The report also showed that gasoline inventories increased by 1.7 million barrels, while distillate stockpiles rose by 1.4 million barrels.
  • Gold held steady on Thursday in Asia as investors cast a wary eye on China's markets to see if the latest stability measures will calm concerns of a rout.Overnight, gold prices fell to the lowest levels of the session on Wednesday, after data showed that U.S. durable goods orders rose unexpectedly in July, boosting optimism over the health of the economy and supporting the case for a U.S. interest rate hike this year. The U.S. Commerce Department said that total durable goods orders, which include transportation items, increased 2.0% last month, compared to expectations for a decline of 0.4%. Orders for durable goods in June were revised to a gain of 4.1% from a previously reported increase of 3.4%. Durable goods are typically bulky or heavy products designed to last at three years, such as trains, planes and automobiles. Core durable goods orders, excluding volatile transportation items, inched up 0.6%, topping forecasts for an increase of 0.4%. Core durable goods orders rose by an upwardly revised 1.0% in June. Orders for core capital goods, a key barometer of private-sector business investment, increased 2.2% last month, above expectations for a 0.4% increase. Shipments of core capital goods, a category used to calculate quarterly economic growth, tacked on 0.6%, beating forecasts for a 0.4% gain. The upbeat data should strengthen expectations of a Federal Reserve interest rate hike as early as next month. The timing of a Fed rate hike has been a constant source of debate in the markets in recent months.

 

 
Intraday RESISTANCE LEVELS
27th August 2015 R1 R2 R3
GOLD-XAU 1,136 1,145-1,154 1,145-1,154
Silver-XAG 14.35 14.85 15.15-15.35
Crude Oil 39.70 40.10 41.30-42.10
EURO/USD 1.1360 1.1435-1.1490 1.1620
GBP/USD 1.5500 1.5630 1.5700
USD/JPY 120.40-120.70 121.20 122.0
AUD/USD 0.7250 0.7310 0.7390-0.7440
USD/CAD 1.3350 1.3420 1.3500
NZD/USD 0.6490 0.6560 0.6680-0.6725

Intraday SUPPORTS LEVELS
27th August 2015 S1 S2 S3
GOLD-XAU 1,124 1,116 1,109-1,101
Silver-XAG 13.90 13.50 13.00
Crude Oil 38.60-38.05 37.20 35.50
EURO/USD 1.1300-1.1260 1.1200 1.1150
GBP/USD 1.5470 1.5370-1.5320 1.5250
USD/JPY 119.60-119.00 118.30 117.40
AUD/USD 0.7120 0.7040 0.6950
USD/CAD 1.3295 1.3210 1.3140-1.3080
NZD/USD 0.6405 0.6340 0.6260-

Intra-Day Strategy (27th August 2015)
GOLD-XAU Neutral
Silver-XAG Neutral
Crude Oil Neutral
EUR/USD Neutral to Sell
GBP/USD Neutral to Sell
USD/JPY Neutral
AUD/USD Neutral to sell
USD/CAD Neutral
NZD/USD Neutral

Gold – XAU

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Gold closed down on Wednesday and made its intraday high of US$1146.23/ounce after setting intraday low of US$1117.62/ounce. Gold went down by 1.317% at US$1125.04/ounce.

Technicals in Focus:

In daily charts, prices are below 50DMA (1133) and breakage above will call for 1147-1154. MACD is above zero line but histograms are decreasing trend and it will bring pessimistic stance in the upcoming sessions. RSI is in overbought region and more upside is expected. Stochastic Oscillator is in oversold territory and giving negative crossover to confirm bearish stance for intraday trade.

Trading Strategy: Neutral

Based on the charts and explanations above; sell below 1136-1162 keeping stop loss above 1162 and targeting 1124-1116 and 1,109-1,101; breakage above 1169 will be buy call keeping target of 1174-1179. Buy above 1124-1109 with risk below 1101, targeting 1136-1145 and 1154-116.

 
Intraday Support Levels
S1     1,124
S2     1,116
S3     1,109-1,101
Intraday Resistance Levels
R1     1,136
R2     1,145-1,154
R3     1,145-1,154

Technical Indicators

Name   Value Action
14DRSI  

50.545

Buy
20-DMA   1116.69 Buy
50-DMA  

1133.60

Buy
100-DMA   1163.92 Sell
200-DMA   1187.79 Sell
STOCH(5,3)   28.960 Sell
MACD(12,26,9)   5.845 Buy

Silver - XAG

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Silver closed down on Wednesday made its intraday high of US$14.75/ounce after setting intraday low of US$13.95/ounce. Silver settled down by 3.88% at US$14.12/ounce.

Technicals in Focus:

On daily charts, silver is sustaining below 50DMA (15.15), breakage above 15.15will lead to 15.65-15.85. MACD is below zero line and histograms are decreasing trend and it will bring bearish stance in the upcoming sessions. RSI is in oversold region and indicating pessimistic stance. The Stochastic Oscillator is in over sold territory and giving negative crossover, will show downside for the intraday trade.

Trading Strategy: Neutral

Based on the charts and explanations above, buy above 14.00 targeting 14.85-15.15 and 15.65-16.00; stop breakage below 14.00. Sellbelow 14.85-16.05 with stop above 16.05; targeting 14.00 and 13.50-13.00; upside breakout of 16.05 will open the way to 17.00-18.00.

 
Intraday  Support Levels
S1     13.90
S2     13.50
S3     13.00

Intraday  Resistance Levels
R1     14.35
R2     14.85
R3     15.15-15.35

TECHNICAL INDICATORS
Name   Value Action
14DRSI   35.836 Sell
20-DMA   14.93 Sell
50-DMA   15.15 Sell
100-DMA   15.80 Sell
200-DMA   16.19 Sell
STOCH(5,3)   11.185 Sell
MACD(12,26,9)   -0.048 Sell

Oil - WTI

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Crude futures (Oct 2015) onWednesday made an intra‐day high of US$39.83/bbl and made an intraday low of US$38.51/bbl and settled down by 2.017% at US$38.86/bbl on session close.

Technicals in Focus:

On daily charts, oil is sustaining below its 20DMA i.e. 43.40which is anmajor resistance and breakage above will call to 48.50-49.00. MACD is below zero line and histograms are in decreasing mode will bring bearish stance in the upcoming sessions. The Stochastic Oscillator is in oversold region andstill givingnegativecrossover for confirmation of bearish stance; while the RSI is in oversold region and more downtrend can be expected trend.

Trading Strategy: Neutral

Sell below 39.70-41.50 withstop loss above 42.10; targeting 38.60-38.05 and 37.20. Buy above38.10-35.30 with risk daily closing below35.30 and targeting 40.10-41.40 and 42.10-43.80.

 
Intraday Support Levels
S1     38.60-38.05
S2     37.20
S3     35.50

Intraday Resistance Levels
R1     39.70
R2     40.10
R3     41.30-42.10

TECHNICAL INDICATORS
Name   Value Action
14DRSI   25.729 Sell
20-DMA   43.41 Sell
50-DMA   50.00 Sell
100-DMA   54.18 Sell
200-DMA   54.11 Sell
STOCH(5,3)   12.379 Sell
MACD(12,26,9)   -2.980 Sell

EUR/USD

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EUR/USD on Wednesday made an intraday low of US$1.1290/EUR and made an intraday high of US$1.1560/EUR and settled the day down by 1.762% at US$1.1312/EUR on session close.

Technicals in Focus:

On daily charts, prices are sustainingabove 200DMA (1.1318), which become immediate supportlevel, break belowwill target 1.1235-1.1090. MACD is now above zero line and giving buysignal. Stochastic is approaching oversoldterritory and givingnegativecrossovers to signal for bearishoutlook for intraday.

Trading Strategy: Neutral to Sell

Based on the charts and explanations above; sell below 1.1365-1.1620targeting 1.1300-1.1235 and 1.1150 with stop-loss at hour closing above 1.1620. Buy above 1.1260-1.1150with risk below 1.1150 targeting1.1400-1.1490 and 1.1620-1.1720.

 
Intraday Support Levels
S1     1.1300-1.1260
S2     1.1200
S3     1.1150

Intraday  Resistance Levels
R1     1.1360
R2     1.1435-1.1490
R3     1.1620

TECHNICAL INDICATORS
Name   Value Action
14DRSI   58.309 Buy
20-DMA   1.1235 Buy
50-DMA   1.1089 Buy
100-DMA   1.1082 Sell
200-DMA   1.1318 Sell
STOCH(5,3)   46.044 Sell
MACD(12,26,9)   0.0102 Buy

GBP/USD

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GBP/USD on Wednesday made an intra‐day low of US$1.5451/GBP and made an intraday high of US$1.5719/GBP and settled the day downby 1.428% at US$1.5461/GBP on session close.

Technicals in Focus:

GBP/USD on Wednesday made an intra‐day low of US$1.5451/GBP and made an intraday high of US$1.5719/GBP and settled the day downby 1.428% at US$1.5461/GBP on session close.

Trading Strategy: Neutral to Sell

Based on the charts and explanations above;short positions below 1.5500-1.5700 with targets at 1.5470-1.5370 and 1.5250breakage above 1.5700 look for further upside with 1.5810-1.5850 as targets. Buy above 1.5470-1.5300with stop loss closing below 1.5250 targeting 1.5500-1.5550 and 1.5630-1.5700.

 
Intraday Support Levels
S1     1.5470
S2     1.5370-1.5320
S3     1.5250

Intraday Resistance Levels
R1     1.5500
R2     1.5630
R3     1.5700

TECHNICAL INDICATORS
Name   Value Action
14DRSI  

42.963

Sell
20-DMA   1.5605 Sell
50-DMA   1.5607 Sell
100-DMA   1.5470 Buy
200-DMA   1.5370 Buy
STOCH(5,3)   14.396 Sell
MACD(12,26,9)   0.0059 Neutral

USD/JPY

OB

USD/JPY on Wednesday made intra‐day low of JPY118.44/USD and made an intraday high of JPY120.009/USD and settled the day up by 0.925%at JPY119.91/USD.

Technicals in Focus:

In daily charts, JPY is sustaining below 200DMA (120.70), which is major resistanceon the daily chart. RSI is in approaching oversold territory and giving sell signal for further downside. MACD is below zero line buthistograms are increasing lead to upward movement. The Stochastic Oscillator is in oversold territory and signaling tosell as it has givennegativecrossover to confirm bullishstance.

Trading Strategy: Neutral

Based on the charts and explanations above; sell below 120.40-122.00 with risk above 122.00 targeting 119.10-118.30 and 117.40 and traders may take long positions above 119.60-118.30 with targets of 121.20-121.70 and 122.00-123.60, stop below 118.30.

 
Intraday Support Levels
S1     119.60-119.00
S2     118.30
S3     117.40

INTRADAY RESISTANCE LEVELS
R1     120.40-120.70
R2     121.20
R3     122.0

TECHNICAL INDICATORS
Name   Value Action
14DRSI   34.006 Sell
20-DMA   123.19 Sell
50-DMA   123.24 Sell
100-DMA   122.24 Sell
200-DMA   120.70 Sell
STOCH(9,6)   43.508 Buy
MACD(12,26,9)   -0.948 Sell

AUD/USD

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AUD/USD on Wednesday intra‐day low of USD$0.7069/AUD and made an intraday high of USD$0.7156/AUD and settled the day down by 0.098% at USD$0.7121/AUD on session close.

Technicals in Focus:

In daily charts, prices are sustaining below 50DMA (0.7690) become major resistance. MACD is now below zero line and histogram are increasing mode will bring more bullish stance in the upcoming sessions. RSI is approaching overbought region and more upside is expected. The Stochastic Oscillator is approaching overboughtterritory and giving negative crossover to confirm bearish stance for intraday trade.

Trading Strategy: Neutral to sell

Short positions below 0.7250-0.7390with targets at 0.7120-0.7040 and 0.6950 in extension, above 0.7390 look for further upside with 0.7440-0.7610 as targets.

 
Intraday Support Levels
S1     0.7120
S2     0.7040
S3     0.6950

INTRADAY RESISTANCE LEVELS
R1     0.7250
R2     0.7310
R3     0.7390-0.7440

TECHNICAL INDICATORS
Name   Value Action
14DRSI   29.736 Buy
20-DMA   0.7316 Sell
50-DMA   0.7431 Sell
100-DMA   0.7619 Sell
200-DMA   0.7806 Sell
STOCH(9,6)   28.783 Sell
MACD(12,26,9)   -0.0062 Sell

USD/CAD

OB

USD/CAD on Wednesday intra‐day low of CAD1.3249/USD and made an intraday high of CAD1.3348/USD and settled the day 0.3337% down at CAD1.3290/USD.

Technicals in Focus:

In daily charts, prices are sustaining above 20MA (1.3076) become immediate major support, breakage below 1.3076 will target 1.3020-1.2942. MACD is now above zero line but histogram are increasing mode will bring bullish stance in the upcoming sessions. RSI is approaching overbought region; a little more upside is expected. Stochastic Oscillator is approaching overbought territory and giving positive crossover to confirm bullish stance for intraday trade.

Trading Strategy: Neutral

Based on the charts and explanations above, long position can be taken above 1.3210-1.3100 targets at 1.3150-1.3210 with risk below 1.2900.

 
Intraday Support Levels
S1     1.3295
S2     1.3210
S3     1.3140-1.3080

INTRADAY RESISTANCE LEVELS
R1     1.3350
R2     1.3420
R3     1.3500

TECHNICAL INDICATORS
Name   Value Action
14DRSI   62.439 Buy
20-DMA   1.3140 Buy
50-DMA   1.2880 Buy
100-DMA   1.2564 Buy
200-DMA   1.2352 Buy
STOCH(9,6)   81.982 Buy
MACD(12,26,9)   0.0104 Buy

NZD/USD

OB

NZD/USD closed down on Wednesday and made its intraday high of US$0.6514/NZD before setting intraday low of US$0.6408/NZD. NZD was down by 0.540% at US$0.6436/NZD.

Technicals in Focus:

In daily charts, prices are sustaining below 50DMA (0.6786) become immediate resistance; breakage below 0.6786 will call for 0.6800-0.6950. MACD is now below zero line and histogram are in decreasing mode will bring more bearish stance in the upcoming sessions. RSI is in oversold region, upside is expected. The Stochastic Oscillator is in over bought territory and giving negative crossover to confirm bearish stance for intraday trade.

Trading Strategy: Neutral

Based on the charts and explanations above; sell below 0.6700-0.6790; targeting 0.6630-0.6540 and 0.6490-0.6420 with risk above 0.6800. Buy above 0.6540-0.6400, targeting 0.6640-0.6690 and 0.6725.

 
Intraday Support Levels
S1     0.6405
S2     0.6340
S3     0.6260-

INTRADAY RESISTANCE LEVELS
R1     0.6490
R2     0.6560
R3     0.6680-0.6725

TECHNICAL INDICATORS
Name   Value Action
14DRSI   41.715 Buy
20-DMA   0.6568 Buy
50-DMA   0.6654 Sell
100-DMA   0.7015 Sell
200-DMA   0.7308 Sell
STOCH(9,6)   61.454 Sell
MACD(12,26,9)   -0.0037 Sell

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