Daily Markets

• Oil prices traded mostly flat on Thursday, giving up gains made earlier in the day, as optimism over China's demand outlook was tempered by caution ahead of upcoming inflation data from the United States. Both benchmarks had risen 3% in Wednesday's session, boosted by hopes for an improved global economic outlook and concern over the impact of sanctions on Russian crude output. Top oil importer China is reopening its economy after the end of strict COVID-19 curbs, boosting optimism that demand for fuel will grow in 2023. Its industrial output is expected to have grown by 3.6% in 2022 from the previous year, the Ministry of Industry and Information Technology said, despite production and logistics disruptions from COVID-19 curbs. China's outbound flight bookings surged but even so were at only 15% of pre-pandemic levels in the week after the country announced it would reopen its borders, travel data firm ForwardKeys said on Thursday. Upcoming U.S. inflation data, however, is a key risk factor for oil, CMC Market's Teng added. That is leading traders to become cautious ahead of the data release on Thursday. Economists are expecting the rise in core U.S. consumer prices to slow to an annual pace of 5.7% in December, versus 6% a month earlier. Month-on-month headline inflation is seen at zero. The market is also bracing for additional curbs aimed at Russian fuel products sales set to come into force in February as the European Union (EU) keeps working on more sanctions against Moscow over the invasion of Ukraine. The U.S. Energy Information Administration said the upcoming EU ban on seaborne imports of petroleum products from Russia on Feb. 5 could be more disruptive than the EU ban on seaborne imports of crude oil from Russia implemented in December. An international price cap imposed on sales of Russian crude took effect on Dec. 5

Gold – XAU

Gold on Thursday made it’s intraday high of US$1886.58/oz and low of $1867.07/oz. Gold is down by 0.079% at US$1875.31/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 1887-1927 keeping stop loss closing above 1927, targeting 1869-1860-1849 and 1834-1826-1808. Buy in between 1879-1800 with risk below 1800, targeting 1,879-1887-1900 and 1907-1927.

Silver - XAG

Silver on Wednesday made its intraday high of US$23.20/oz and low of US23.20/oz settled down by 0.653% at US$23.40/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 23.60-20.30, targeting 24.40-25.00-25.90 and 26.20-26.90 with stop loss should be placed on the breakage below 20.30. Sell in between 24.40-26.20 with stop loss above 26.20; targeting 23.60-23.00-22.10 and 21.70-21.30-20.70.

Oil - WTI

Crude Oil on Wednesday .,kkmade an intra‐day high of US$76.10/bbl, an intraday low of US$74.06/bbl, and settled down by 0.255% to close at US$74.88/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 78.10-82.40 with stop loss at 82.40; targeting 77.00-76.10-75.20 and 74.10-72.90-72.10. Buy above 77.10-70.10 with risk daily closing below 70.10; targeting 78.10-78.90-79.65 and 80.50-81.20-82.40.

EUR/USD

EUR/USD on Wednesday made an intraday low of US$1.0725/EUR, a high of US$1.0775/EUR, and settled the day up by 0.2245% to close at US$1.0755/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 1.0790-1.0930, targeting 1.0690-1.0650-1.0590 and 1.0520-1.0450-1.0390 with stop-loss at daily closing above 1.0940. Buy above 1.0650-1.0390 with risk below 1.0390 targeting 1.0690-1.0735-1.0790 and 1.0830-1.0900.

GBP/USD

GBP/USD on Wednesday made an intra‐day low of US$1.2099/GBP, a high of US$1.2177/GBP, and settled the day down 0.074% to close at US$1.2142/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 1.2120-1.1890 with a target of 1.2170-1.2290-1.2350 and 1.2390-1.2445 with a stop loss closing below 1.1850. Sell in between 1.2170-1.2445 with targets at 1.2120-1.2040-1.1990 and 1.1890-1.0850-1.0800 with stop loss should be 1.2445.

USD/JPY

USD/JPY on Wednesday made an intra‐day low of JPY132.33/USD and made an intraday high of JPY132.86/USD and settled the day up by 0.083% at JPY132.33/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 132.90-138.00 with risk above 138.00 targeting 131.90-131.10-130.40 and 129.50-128.90. Long positions above 131.90-129.00 with targets of 132.90-134.10-134.90 and 135.70-136.90-137.70 with stops below 130.00.