Daily Markets

• Oil prices rose as much as $1 on Friday, extending gains from the previous session, supported by hopes of a China demand boost and after data showed lower U.S. fuel inventories following a winter storm that hit at the end of the year. China announced more state support measures on Thursday, including establishing a dynamic adjustment mechanism on mortgage rates for first-time home buyers, in a bid to boost its highly indebted property sector, which accounts for a quarter of the country's economy. The total number of passenger trips via road, rail, water and air during the upcoming Lunar New Year is expected to reach 2.1 billion this year, transport officials said on Friday, double the 1.05 billion during the same period last year Daily passenger flights scheduled during the holiday season beginning on Saturday are averaging 73% of pre-pandemic levels in 2019. China, the world's largest crude oil importer, has ended its stringent zero-COVID policy, leading to a surge in COVID infections across the country. In the U.S., data from the Energy Information Administration (EIA) showed on Thursday that distillate inventories, which include diesel and heating oil, dropped more than expected in the week to Dec. 30. They fell by 1.4 million barrels, compared with expectations of a 396,000-barrel drop. Meanwhile, U.S. gasoline stocks fell 346,000 barrels last week, according to the EIA data, compared with analysts' expectations for a 486,000-barrel drop. On a weekly basis, however, oil prices were on track to end lower, with both the Brent and WTI contracts down around 7% on a week earlier. Concern about the possibility of a global recession have weighed on trading sentiment. The world's top crude exporter Saudi Arabia lowered prices for the flagship Arab light crude it sells to Asia to its lowest since November 2021 amid global pressures hitting oil.

Gold – XAU

Gold on Thursday made it’s intraday high of US$1858.92/oz and low of $1824.96/oz. Gold is up by 1.172% at US$1832.74/oz.

Technicals in Focus:

In daily charts, prices are above 200DMA (1809) and breakage below will call for 1790. MACD is above the zero line and histograms are a2lso increasing trend and it will bring an upward stance in the upcoming sessions. RSI is in the overbought region and more upside is expected before it gets stretched. The Stochastic Oscillator is in neutral territory and giving a negative crossover to a bearish stance for intraday trade.

Trading Strategy: Sell on Strength

Sell below 1849-1900 keeping stop loss closing above 1900, targeting 1849-1834-1826 and 1808-1790. Buy in between 1834-1800 with risk below 1800, targeting 1849-1860-1,870 and 1,879-1887-1900

Silver - XAG

Silver on Thursday made its intraday high of US$23.90/oz and low of US23.10/oz settled down by 2.20% at US$23.23/oz.

Technicals in Focus:

On daily charts, silver is sustaining below 100DMA (21.00), breakage above will lead to 21.60. MACD is below the zero line and histograms are decreasing trend and it will bring a bearish stance in the upcoming sessions. RSI is approaching the neutral region, indicating a buy signal for now. The Stochastic Oscillator is in the oversold region and gives a positive crossover to show an upside move for the intraday trade.

Trading Strategy: Buy on Dips

Buy in between 23.00-20.30, targeting 23.30-23.60 and 24.00-24.40-25.00 with stop loss should be placed on the breakage below 20.00. Sell in between 23.60-25.00 with stop loss above 25.00; targeting 22.10-21.70 and 21.30-20.70-20.10.

Oil - WTI

Crude Oil on Thursday made an intra‐day high of US$75.05/bbl, an intraday low of US$72.61/bbl, and settled up by 1.025% to close at US$74.06/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 the zero line and histograms are in increasing mode will bring a bullish stance in the upcoming sessions. The Stochastic Oscillator is in the neutral region, giving a positive crossover for confirmation of a bullish stance; while the RSI is in the 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 74.90-81.40 with stop loss at 81.40; targeting 73.50-72.90-72.10 and 71.40-70.10-69.00. Buy above 74.10-69.00 with risk daily closing below 69.00; targeting 74.10-75.20-76.10 and 77.00-78.10-80.70.

EUR/USD

EUR/USD on Thursday made an intraday low of US$1.0514/EUR, a high of US$1.0630/EUR, and settled the day down by 0.749% to close at US$1.0520/EUR.

Technicals in Focus:

On daily charts, prices are sustaining above 50DMA (1.0736), which becomes immediate support, a break below will target 1.0647. MACD is above the zero line and histograms are increasing mode which will bring a bullish view. Stochastic is in overbought territory and giving positive crossovers to the bullish outlook for intraday. 14D RSI is currently in a neutral region and giving no directions to consider right now.

Trading Strategy: Neutral to Sell

Sell below 1.0520-1.0930, targeting 1.0490-1.0450-1.0390 and 1.0325-1.0290 with stop-loss at daily closing above 1.0940. Buy above 1.0490-1.0290 with risk below 1.0390 targeting 1.0520-1.0590-1.0650 and 1.0720-1.0790-1.0830.

GBP/USD

GBP/USD on Thursday made an intra‐day low of US$1.1872/GBP, a high of US$1.2077/GBP, and settled the day up 1.237% to close at US$1.1901/GBP.

Technicals in Focus:

On daily charts, prices are sustaining below 20DMA (1.2113) is becoming a resistance level. 14-D RSI is currently in a neutral region and direction is difficult to predict on RSI bases. The Stochastic Oscillator is in overbought territory and gives a positive crossover to confirm bullish a stance. MACD is above the zero line but histograms are increasing leading to movement.

Trading Strategy: Neutral to Buy

Based on the charts and explanations above; buy in between 1.1890-1.0640 with a target of 1.1950-1.1990-1.2090 and 1.2120-1.2170-1.2280 with a stop loss closing below 1.0640. Sell in between 1.1950-1.2290 with targets at 1.1890-1.0850-1.0800 and 1.0730-1.1640 with stop loss should be 1.2290.

USD/JPY

USD/JPY on Thursday made an intra‐day low of JPY131.67/USD and made an intraday high of JPY134.05/USD and settled the day up by 0.601% at JPY133.39/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 the overbought region and chances of downward are expected based on RSI. MACD is above the 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 a negative crossover to confirm a bearish stance.

Trading Strategy: Neutral to Sell

Sell below 134.90-138.00 with risk above 138.00 targeting 134.10-132.90-131.90 and 131.10-130.40-129.50. Long positions above 134.10-130.00 with targets of 134.90-135.70-136.90 and 137.70-139.50 with stops below 130.00.