Velocity Trades Markets

Daily Market Lookup

  • The dollar held near a one-week low on Thursday with investors eyeing the Fed's Jackson Hole symposium for clues on the timing of a tapering of monetary stimulus. The greenback has softened since Dallas Fed President Robert Kaplan, among the U.S. central bank's most forceful advocates for starting to reduce support for the economy, said last Friday that he may need to adjust that view if the coronavirus slows economic growth materially. At the same time, demand for the dollar as a haven waned as investor optimism rose that the Delta coronavirus variant won't derail a global recovery. The U.S. Food and Drug Administration fully approved the COVID-19 vaccine made by Pfizer (NYSE:PFE) and BioNTech on Monday, with others to follow shortly, in a move that could accelerate U.S. inoculations. The focus at this Friday's symposium in Jackson Hole, Wyoming will be Fed Chair Jerome Powell's speech, which will be parsed for clues on the timing and pace of tapering of monetary stimulus. The dollar edged marginally higher in early European trade Thursday, but remained near a one-week low amid healthy risk appetite ahead of the Federal Reserve’s key Jackson Hole symposium. Adding to the optimism was the news Wednesday that new orders for U.S durable goods, excluding transportation equipment, grew by 0.7% in July, a better than expected result. There’s more important data on tap later Thursday, including the weekly jobless claims and another reading of the second quarter GDP figure, but the focus remains on Friday’s speech by Fed chair Jerome Powell at a virtual gathering of U.S. central bankers, usually held at Jackson Hole, Wyoming.
  • The dollar was up on Thursday morning in Asia but remained near a one-week low as concerns over COVID-19's impact on the global economic recovery receded. Investors also await the U.S. Federal Reserve’s Jackson Hole symposium for clues on an asset tapering timeline. The Fed’s Jackson Hole symposium will open later in the day, with Fed Chairman Jerome Powell due to speak on Friday. Signals that the Fed will begin asset tapering within 2021 had boosted the U.S. currency to a nine-and-a-half-month high of 93.734 during the previous week, but it remains to be seen whether the central bank will provide a timeline for asset tapering and interest rate hikes. In Asia Pacific, South Korea became the first major Asian economy to hike interest rates since COVID-19 began. The Bank of Korea interest rate for August, handed down earlier in the day, is 0.75%, up by 25 basis points from the previous 0.5% and within expectations. Some investors remain optimistic about the dollar as Fed asset tapering also moves towards becoming a reality, even if it is delayed by COIVD-19 uncertainties.
  • Gold was down on Thursday morning in Asia, with investors cautious ahead of a U.S. Federal Reserve symposium that could provide cues to a timeline for asset tapering. The Fed’s Jackson Hole symposium will open later in the day, with Fed Chairman Jerome Powell delivering a speech on Friday. Although an increasing number of Fed officials have signaled that asset tapering could begin earlier than expected, COVID-19 outbreaks globally continue to cloud the economic outlook and cast doubts over this view. However, other central banks are ahead of the Fed, with the Bank of Korea (BOK) hiking its interest rate as it handed down its policy decision earlier in the day. BOK’s interest rate for August is 0.75%, up by 25 basis points from the previous 0.5% and within expectations, and South Korea is now the first major Asian economy to hike interest rates since COVID-19 began.
  • Oil fell on Thursday for the first session this week as renewed concerns about demand amid rising COVID-19 infections cut short a three-day rally, and as production returned in Mexico. The U.S. Energy Information Administration (EIA) reported that American crude inventories fell last week for a third consecutive week and overall fuel demand increased to the most since March 2020, boosting prices around 10% through Wednesday. But the demand picture is not entirely bullish. Distillate stockpiles, which include diesel and jet fuel, rose last week, gaining 0.6 million barrels to 138.46 million barrels, against expectations for a 0.3 million-barrel drop, according to the EIA data. The return of output in Mexico, where a fire on Sunday on an offshore platform killed at least five workers and knocked out a bit more than 400,000 barrels per day (bpd) of production, is also pressuring prices. Pemex had so far recovered 71,000 bpd of production and expects to add an additional 110,000 bpd within a few hours. More broadly, fresh COVID-19 outbreaks fuelled by the Delta variant of the coronavirus are raising concerns about the strength of the economic recovery globally.

 

 
Intraday RESISTANCE LEVELS
26th August 2021 R1 R2 R3
GOLD-XAU 1,790-1,805 1,817 1,830-1,840
Silver-XAG 23.75-24.00 24.45 24.75-25.50
Crude Oil 68.30-68.55 69.00 69.55-70.10
EURO/USD 1.1800-1.1850 1.1910 1.1950-1.1990
GBP/USD 1.3750-1.3810 1.3850 1.3900-1.3950
USD/JPY 110.54-111.70 112.50 113.00-113.50

Intraday SUPPORTS LEVELS
26th August 2021 S1 S2 S3
GOLD-XAU 1,784-1,767 1,760 1,751-1,740
Silver-XAG 23.30-22.90 22.50 22.15-21.85
Crude Oil 67.25-66.50 65.45 64.90-64.05
EURO/USD 1.1750-1.1705 1.1640 1.1601-1.1550
GBP/USD 1.3720-1.3670 1.3610 1.3571-1.3550
USD/JPY 110.00¬-109.60 109.10 108.40-107.45

Intra-Day Strategy (26th August 2021)
GOLD-XAU Buy on Dips
Silver-XAG Buy on Dips
Crude Oil Neutral to Sell
EUR/USD Neutral to Sell
GBP/USD Neutral to Sell
USD/JPY Neutral to Sell

Gold – XAU

Velocity Trades Markets

Gold on Wednesday made its intraday high of US$1803.01/oz and low of US$1782.39/oz. Gold down 0.671% at US$1790.71/oz.

Technicals in Focus:

In daily charts, prices are above 200DMA (1809) and breakage below will call for 1790. MACD is above zero line and histograms are also increasing trend and it will bring upward stance in the upcoming sessions. RSI is in overbought region and more upside is expected before it gets stretched. Stochastic Oscillator is in neutral territory and giving negative crossover to bearish stance for intraday trade.

Trading Strategy: Buy on Dips

Buy in between 1784-1743 with risk below 1743, targeting 1790-1805-1817 and 1825-1830. Sell in between 1794-1830 keeping stop loss closing above 1830, targeting 1784-1767-1760 and 1751-1742-1734.

 
Intraday Support Levels
S1     1,784-1,767
S2     1,760
S3     1,751-1,740
Intraday Resistance Levels
R1     1,790-1,805
R2     1,817
R3     1,830-1,840

Technical Indicators

Name   Value Action
14DRSI  

37.170

Buy
20-DMA   1784.03 Sell
50-DMA  

1799.86

Sell
100-DMA   1806.12 Sell
200-DMA   1804.94 Sell
STOCH(5,3)   45.254 Buy
MACD(12,26,9)   -15.653 Buy

Silver - XAG

Velocity Trades Markets

Silver on Wednesday made its intraday high of US$23.87/oz and low of US$23.56/oz settled down by 0.0713% at US$23.81/oz.

Technicals in Focus:

On daily charts, silver is sustaining below 100DMA (26.62), breakage above will lead to 27.60. MACD is below zero line and histograms are decreasing trend and it will bring bearish stance in the upcoming sessions. RSI is approaching neutral region, indicating buy signal for now. The Stochastic Oscillator is in oversold region and giving positive crossover to show upside move for the intraday trade.

Trading Strategy: Buy on Dips

Buy in between 23.30-21.90, targeting 24.00-24.45-25.05 and 25.50-26.00-26.65 with stop loss should be place on the breakage below 21.90. Sell in between 23.75-26.00 with stop loss above 26.00; targeting 23.25-22.90-22.50 and 22.10-21.90.

 
Intraday  Support Levels
S1     23.30-22.90
S2     22.50
S3     22.15-21.85

Intraday  Resistance Levels
R1     23.75-24.00
R2     24.45
R3     24.75-25.50

TECHNICAL INDICATORS
Name   Value Action
14DRSI   39.923 Buy
20-DMA   24.04 Sell
50-DMA   24.96 Sell
100-DMA   25.50 Sell
200-DMA   25.20 Buy
STOCH(5,3)   51.556 Buy
MACD(12,26,9)   -0.580 Buy

Oil - WTI

Velocity Trades Markets

Crude Oil on Wednesday made an intra‐day high of US$68.42/bbl, intraday low of US$66.82/bbl and settled up by 0.552% to close at US$67.85/bbl.

Technicals in Focus:

On daily charts, oil is sustaining above its 20DMA i.e. 68.50 which is a support level and breakage below will call for 65.40. MACD is above zero line and histograms are in increasing mode will bring bullish stance in the upcoming sessions. The Stochastic Oscillator is in neutral region and giving positive crossover for confirmation of bullish stance; while the RSI is in neutral region and more upside can be expected to reach the overbought region, which is highly probable.

Trading Strategy: Neutral to Sell

Sell in between 68.30-70.10 with stop loss at 70.10; targeting 67.25-66.50-65.45 and 64.90-63.20-62.60. Buy above 67.25-64.05 with risk daily closing below 64.05 and targeting 68.30-68.60-69.00 and 69.55-70.10.

 
Intraday Support Levels
S1     67.25-66.50
S2     65.45
S3     64.90-64.05

Intraday Resistance Levels
R1     68.30-68.55
R2     69.00
R3     69.55-70.10

TECHNICAL INDICATORS
Name   Value Action
14DRSI   45.412 Sell
20-DMA   71.84 Buy
50-DMA   69.87 Buy
100-DMA   67.12 Buy
200-DMA   61.39 Buy
STOCH(5,3)   10.130 Sell
MACD(12,26,9)   0.9685 Buy

EUR/USD

Velocity Trades Markets

EUR/USD on Wednesday an intraday low of US$1.1725/EUR, high of US$1.1773/EUR and settled the day up by 0.134% to close at US$1.1770/EUR.

Technicals in Focus:

On daily charts, prices are sustaining above 20DMA (1.2143), which become immediate Support level, break above will target 1.2090. MACD is above zero line and histograms are increasing mode which will bring bullish view. Stochastic is in oversold territory and still giving negative crossovers to signal for bearish outlook for intraday. 14D RSI is currently in overbought region and giving no directions to consider right now.

Trading Strategy: Neutral to Sell

Sell below 1.1750-1.1910 targeting 1.1640-1.1601 and 1.1550-1.1500 with stop-loss at daily closing above 1.1910. Buy above 1.1705-1.1460 with risk below 1.1460, targeting 1.1750-1.1800 and 1.1840-1.1910-1.1990.

 
Intraday Support Levels
S1     1.1750-1.1705
S2     1.1640
S3     1.1601-1.1550

Intraday  Resistance Levels
R1     1.1800-1.1850
R2     1.1910
R3     1.1950-1.1990

TECHNICAL INDICATORS
Name   Value Action
14DRSI   35.682 Buy
20-DMA   1.1809 Sell
50-DMA   1.1979 Sell
100-DMA   1.1932 Sell
200-DMA   1.1904 Sell
STOCH(5,3)   8.891 Sell
MACD(12,26,9)   -0.003 Buy

GBP/USD

Velocity Trades Markets

GBP/USD on Wednesday made an intra‐day low of US$1.3695/GBP, high of US$1.3766/GBP and settled the day up by 0.256% to close at US$1.3762/GBP.

Technicals in Focus:

On daily charts, prices are sustaining above 100DMA (1.3867) 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 overbought territory and giving positive crossover to confirm bullish 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 in between 1.3750-1.3950 with targets at 1.3615-1.3571 and 1.3550-1.3510 stop-loss should be 1.3890. Buy above 1.3690-1.3550 with targets 1.3715-1.3750-1.3810 and 1.3860-1.3890-1.3955 with stop loss closing below 1.3550.

 
Intraday Support Levels
S1     1.3720-1.3670
S2     1.3610
S3     1.3571-1.3550

Intraday Resistance Levels
R1     1.3750-1.3810
R2     1.3850
R3     1.3900-1.3950

TECHNICAL INDICATORS
Name   Value Action
14DRSI  

38.544

Buy
20-DMA   1.3931 Buy
50-DMA   1.3820 Buy
100-DMA   1.3861 Buy
200-DMA   1.3714 Buy
STOCH(5,3)   21.940 Buy
MACD(12,26,9)   -0.0074 Sell

USD/JPY

Velocity Trades Markets

USD/JPY on Wednesday made intra‐day low of JPY109.56/USD and made an intraday high of JPY110.11/USD and settled the day up 0.0647% at JPY109.98/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

Long positions above 110.00-106.50 with targets of 110.54-111.70-112.50 and 113.00-113.50 with stop below 106.00. Sell below 110.55-113.50 with risk above 113.50 targeting 109.60-109.00-108.50 and 108.00-107.50-106.80.

 
Intraday Support Levels
S1     110.00¬-109.60
S2     109.10
S3     108.40-107.45

INTRADAY RESISTANCE LEVELS
R1     110.54-111.70
R2     112.50
R3     113.00-113.50

TECHNICAL INDICATORS
Name   Value Action
14DRSI   43.047 Buy
20-DMA   109.86 Sell
50-DMA   109.86 Sell
100-DMA   109.34 Sell
200-DMA   108.39 Sell
STOCH(9,6)   7.253 Sell
MACD(12,26,9)   0.110 Sell

Velocity Trades Markets