Daily Markets

• Oil prices eased around 1% on Monday after rising in the previous session, as investors focused on short-term demand concerns stemming from crucial upcoming U.S. inflation data and refinery maintenance in Asia and the United States. The U.S. Federal Reserve has been raising interest rates to rein in inflation, leading to concerns that the move would slow economic activity and demand for oil. Additionally, the resumption of Azerbaijani oil exports on Sunday at Turkey's Ceyhan terminal also relieved supply concerns, said analyst Tina Teng at CMC Markets. The terminal had been damaged in the devastating earthquakes that hit Turkey and Syria last week. It is the storage and loading point for pipelines which carry oil from Azerbaijan and Iraq. Oil prices gained on Friday after Russia, the world's third largest oil producer, said it would cut crude production in March by 500,000 barrels per day (bpd), or about 5% of output, in retaliation against western curbs on its exports that were imposed in response to the Ukraine conflict. On a weekly basis, both the Brent and WTI contracts rose more than 8% last week, buoyed by optimism over demand recovery in China, the world's top crude importer and No. 2 oil consumer, after COVID curbs were scrapped in December. China's oil demand recovery is curbing its gasoline exports in February although its refiners are maintaining diesel shipments at above 2 million tonnes. Stefano Grasso, a senior portfolio manager at 8VantEdge in Singapore, said the 500,000 bpd cut would bring Russia back in line with its OPEC+ quota as Moscow is currently over-exporting. The Organization of the Petroleum Exporting Countries (OPEC) and their allies including Russia, a group known as OPEC+, in October agreed to cut production by 2 million bpd, about 2% of world demand. Oil prices may resume their rally back to $100 a barrel later this year on China's demand recovery and limited supply growth due to a lack of investment, OPEC country officials told Reuters.

Gold – XAU

Gold on Friday made it’s intraday high of US$1872.08/oz and low of $1852.62/oz. Gold is up by 0.208% at US$1865.45/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 1871-1918 keeping stop loss closing above 1918, targeting 1874-1865-1853 and 1837-1823-1815. Buy in between 1860-1,815 with risk below 1815, targeting 1887-1900-1910 and 1917-1927-1940.

Silver - XAG

Silver on Friday made its intraday high of US$22.29/oz and low of US21.82/oz settled up by 0.223% at US$22.00/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 22.25-20.30, 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 23.00-26.20 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 Friday made an intra‐day high of US$80.45/bbl, an intraday low of US$77.61/bbl, and settled up by 2.80% to close at US$79.92/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 78.95-83.40 with stop loss at 83.40; targeting 78.10-77.00-76.10 and 75.50-74.90. Buy above 78.10-72.00 with risk daily closing below 72.00; targeting 78.95-79.65-80.10.

EUR/USD

EUR/USD on Friday made an intraday low of US$1.0665/EUR, a high of US$1.0752/EUR, and settled the day down by 0.625% to close at US$1.0676/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 1.0750-1.1100, 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 1.0690-1.0510 with risk below 1.0820 targeting 1.0900-1.0945-1.0990 and 1.1050-1.1100.

GBP/USD

GBP/USD on Friday made an intra‐day low of US$1.2046/GBP, a high of US$1.2138/GBP, and settled the day down 0.509% to close at US$1.2057/GBP.

Technicals in Focus:

On daily charts, prices are sustaining below 20DMA (1.21) 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 1.2050-1.1750 with a target of 1.2120-1.2170-1.2290 and 1.2390-1.2440-1.2490 with a stop loss closing below 1.1750. Sell in between 1.2100-1.2650 with targets at 1.2090-1.2040-1.1990 and 1.1900-1.1820-1.1750 with stop loss should be 1.2445.

USD/JPY

USD/JPY on Thursday made an intra‐day low of JPY129.79/USD and made an intraday high of JPY131.87/USD and settled the day down by 0.308% at JPY131.39/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 132.0-135.10 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.