Daily Markets

• Oil prices fell on Tuesday as the threat of further interest rate increases and ample Russian crude flows outweighed demand recovery expectations from China. The demand outlook is still uncertain as Russia's exports seem unaffected by sanctions, despite China's reopening, she added. Investors expect the U.S. Federal Reserve will raise interest rates by 25 basis points on Wednesday, with a half-point increase by the Bank of England and European Central Bank the following day. Higher rates could slow the global economy and weaken oil demand. The market also turned its attention to a planned virtual meeting on Feb. 1 at 1100 GMT of the ministers of the Organization of the Petroleum Exporting Countries (OPEC) and others including Russia, a group known as OPEC+. The panel is expected to recommend keeping the oil producer group's current output policy unchanged when it meets this week, five OPEC+ delegates told Reuters on Monday. OPEC+ agreed in October to cut its production target by 2 million barrels per day (bpd), about 2% of world demand, from November until the end of 2023. Russia continues to supply the global market with its oil despite a European Union ban and G7 price cap imposed over its invasion of Ukraine, which pressured prices. Decreases were cushioned by signs of potentially healthy demand coming from China, following growth in the country's economic activity. China's official purchasing managers' index (PMI), which measures manufacturing activity, rose to 50.1 in January from 47.0 in December, the National Bureau of Statistics (NBS) said on Tuesday. The International Monetary Fund (IMF) has raised its 2023 global growth outlook slightly due to "surprisingly resilient" demand in the United States and Europe, an easing of energy costs and the reopening of China's economy after Beijing abandoned its strict COVID-19 restrictions.

Gold – XAU

Gold on Monday made it’s intraday high of US$1934.41/oz and low of $1920.59/oz. Gold is down by 0.252% at US$1923.10/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 1930-1967 keeping stop loss closing above 1967, targeting 1930-1914-1900-1894 and 1887-1879-1869. Buy in between 1918-1879 with risk below 1879, targeting 1940-1948 and 1955-1967.

Silver - XAG

Silver on Monday made its intraday high of US$23.79/oz and low of US23.52/oz settled up by 0.067% at US$23.59/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 Monday made an intra‐day high of US$80.58/bbl, an intraday low of US$77.76/bbl, and settled down by 2.71% to close at US$77.88/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 78.10-83.40 with stop loss at 83.40; targeting 77.00-76.10-75.50 and 74.90-74.10. Buy above 77.00-75.10 with risk daily closing below 75.10; targeting 78.10-78.95-79.65 and 80.10-81.70-82.30.

EUR/USD

EUR/USD on Monday made an intraday low of US$1.0838/EUR, a high of US$1.0913/EUR, and settled the day down by 0.152% to close at US$1.0847/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 1.0905-1.1100, 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 1.0830-1.0520 with risk below 1.0820 targeting 1.0900-1.0945-1.0990 and 1.1050-1.1100.

GBP/USD

GBP/USD on Monday made an intra‐day low of US$1.2335/GBP, a high of US$1.2416/GBP, and settled the day down 0.339% to close at US$1.2347/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 Monday made an intra‐day low of JPY129.19/USD and made an intraday high of JPY130.56/USD and settled the day up by 0.531% at JPY130.29/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.