Daily Markets

• Oil prices were little changed on Friday, with major benchmarks headed for their second straight week of losses, as the market awaited further signs of fuel demand recovery in China to offset looming slumps in other major economies. Mixed signals on fuel demand recovery in China, the world's top oil importer, have kept a lid prices. ANZ analysts pointed to a sharp jump in traffic in China's 15 largest cities following the Lunar New Year holiday, but also noted that Chinese traders had been "relatively absent". The prospect of an economic rebound in China after COVID-19 curbs eased has buoyed the oil market so far this year, along with a weaker dollar that makes the commodity cheaper for those holding other currencies. The dollar has fallen because aggressive interest rate hikes by the U.S. Federal Reserve are no longer expected. Central banks for other major economies, though, are continuing with bigger rate increases even as inflation has eased. While supported by a weaker greenback, oil's gains have been limited by the prospect of slow growth in the United States, the world's biggest oil consumer, and recessions in places including Britain, Europe, Japan and Canada. The U.S. central bank scaled back to a milder rate increase after a year of larger hikes, but policymakers also projected that "ongoing increases" in borrowing costs would be needed. Upcoming interest rate hikes in 2023 are likely to weigh on the U.S. and European economies, boosting fears of an economic slowdown highly likely to dent global crude oil demand, said Priyanka Sachdeva, market analyst at Phillip Nova. Investors are also eyeing developments on the Feb. 5 European Union ban on Russian refined products as the EU countries will seek a deal on Friday to set price caps for Russian oil products.

Gold – XAU

Gold on Wednesday made it’s intraday high of US$1959.64/oz and low of $1911.17/oz. Gold is down by 1.95% at US$1912.37/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 1918-1967 keeping stop loss closing above 1967, targeting 1930-1914-1900-1894 and 1887-1879-1869. Buy in between 1910-1879 with risk below 1879, targeting 1940-1948 and 1955-1967.

Silver - XAG

Silver on Wednesday made its intraday high of US$24.62/oz and low of US23.40/oz settled down by 2.12% at US$23.45/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$77.37/bbl, an intraday low of US$75.13/bbl, and settled down by 0.970% to close at US$76.11/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 76.10-83.40 with stop loss at 83.40; targeting 78.10-77.00-76.10 and 75.50-74.90-74.10. Buy above 75.10-72.00 with risk daily closing below 72.00; targeting 76.10-77.00-78.10 and 78.95-79.65-80.10.

EUR/USD

EUR/USD on Wednesday made an intraday low of US$1.0884/EUR, a high of US$1.1032/EUR, and settled the day down by 0.720% to close at US$1.0908/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 Wednesday made an intra‐day low of US$1.2221/GBP, a high of US$1.2400/GBP, and settled the day down 1.212% to close at US$1.2223/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 1.2170-1.1890 with a target of 1.2290-1.2390-1.2445 and 1.2490-1.2550 with a stop loss closing below 1.1890. Sell in between 1.2290-1.2650 with targets at 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 JPY129.12/USD and made an intraday high of JPY129.12/USD and settled the day down by 0.256% at JPY128.58/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.