Daily Markets

• Oil prices were steady on Thursday after U.S. crude stocks climbed less than expected, while investors awaited further clarity on supply drivers, including an OPEC+ meeting and the looming EU ban on Russian refined products. Oil prices were also little changed after data showed a build in U.S. crude inventories which was less than expected. Crude inventories edged higher by 533,000 barrels to 448.5 million barrels in the week ending Jan. 20, the Energy Information Administration (EIA) said. That was substantially short of forecasts for a 1 million barrel rise, though crude stocks are at their highest since June 2021, the EIA said. The rise in inventories capped price gains as it reflected softer fuel demand, on top of broader concerns of a slowing global economy. Global economic growth is forecast to barely move above 2% this year, according to a Reuters poll of economists, who said the greater risk was a further downgrade to their view. That was at odds with widespread optimism in markets since the beginning of the year. Meanwhile, the Organization of the Petroleum Exporting Countries (OPEC) and its allies, a group known as OPEC+, are likely to endorse the group's current output levels at a Feb. WTI prices briefly rose by over $1 per barrel on Wednesday after the Energy Information Administration (EIA) said that U.S. crude inventories rose by 533,000 barrels in the last week to 448.5 million barrels. Analysts polled by Reuters were expecting a 1 million-barrel rise. Crude prices have rallied in 2023, with global benchmark Brent crude topping $89 a barrel this week for the first time since early December on the ending of China's COVID-19 controls and hopes that rises in U.S. interest rates will soon taper off. Elsewhere on the supply side, volume should remain steady as the Organization of the Petroleum Exporting Countries (OPEC) and its allies, a group known as OPEC+, are likely to endorse the group's current output levels at a Feb. 1 meeting, OPEC+ sources said on Tuesday.

Gold – XAU

Gold on Wednesday made it’s intraday high of US$1947.97/oz and low of $1919.74/oz. Gold is up by 0.459% at US$1946.01/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 1940-1967 keeping stop loss closing above 1967, targeting 1930-1914-1900-1894 and 1887-1879-1869. Buy in between 1927-1879 with risk below 1879, targeting 1940-1948 and 1955-1967.

Silver - XAG

Silver on Wednesday made its intraday high of US$23.93/oz and low of US23.34/oz settled up by 1.16% at US$23.90/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 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 24.00-26.20 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 made an intra‐day high of US$81.27/bbl, an intraday low of US$79.50/bbl, and settled up by 0.215% to close at US$80.47/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 81.20-83.40 with stop loss at 83.40; targeting 80.10-79.65-78.95 and 78.10-77.00-76.10. Buy above 81.50-76.10 with risk daily closing below 76.10; targeting 81.70-82.30-82.70 and 83.30-84.00.

EUR/USD

EUR/USD on Wednesday made an intraday low of US$1.0856/EUR, a high of US$1.0923/EUR, and settled the day up by 0.281% to close at US$1.0914/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 1.0945-1.1100, targeting 1.0830-1.0790-1.0690 and 1.0650-1.0590-1.0520 with stop-loss at daily closing above 1.1100. Buy above 1.0900-1.0520 with risk below 1.0820 targeting 1.0900-1.0945-1.0990 and 1.1050-1.1100.

GBP/USD

GBP/USD on Wednesday made an intra‐day low of US$1.2282/GBP, a high of US$1.2402/GBP, and settled the day up 0.584% to close at US$1.2395/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 1.2350-1.1890 with a target of 1.2390-1.2445-1.2290 with a stop loss closing below 1.1890. Sell in between 1.2445-1.2650 with targets at 1.2350-1.2290-1.2170 and 1.2120-1.2040-1.1990 with stop loss should be 1.2445.

USD/JPY

USD/JPY on Wednesday made an intra‐day low of JPY129.58/USD and made an intraday high of JPY130.57/USD and settled the day down by 0.435% at JPY129.58/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 130.50-133.00 with risk above 133.00 targeting 129.50-129.00-127.45 and 126.90-126.20-125.00. Long positions above 129.50-126.20 with targets of 130.40 and 131.10-131.60-132.00 with stops below 130.00.