Daily Markets

• Oil edged up on Thursday after Brent crude posted its biggest single-day loss in seven weeks the day before, as market players reassess positions after the U.S. Federal Reserve stoked worries about the economy by suggesting further rate hikes ahead. Both benchmarks lost more than $2 in the previous trading day on expectations of more aggressive interest rate increases. Minutes from the latest U.S. Federal Reserve meeting on Wednesday showed that a majority of Fed officials agreed the risks of high inflation remained a key factor shaping monetary policy and warranted continued rate hikes until it was controlled. The policymakers also suggested that a shift to smaller hikes would let them calibrate more closely with incoming data. Investors are recalibrating the energy market, weighing the prospects for China's reviving demand and tepid consumption in the U.S. and other advanced economies, analysts from Haitong Futures said. Lending some support to oil prices, Russia plans to cut oil exports from its western ports by up to 25% in March versus February, exceeding its announced production cuts of 500,000 barrels per day. The dollar index inched down by 0.1% to 104.39 on Thursday, making oil slightly cheaper for those holding other currencies. But oil's price gains were limited by signs of further crude inventory builds. U.S. crude oil and fuel inventories rose by 9.9 million barrels last week, according to market sources citing American Petroleum Institute figures on Wednesday. U.S. oil inventories have climbed every week since mid-December, stoking investor worries about demand. A Reuters poll had forecast a 2.1 million barrel increase in crude stockpiles last week. Official data from the U.S. Energy Information Administration is due on Thursday at 1600 GMT.

Gold – XAU

Gold on Wednesday made it’s intraday high of US$1845.94/oz and low of $1823.47/oz. Gold is down by 0.523% at US$1825.07/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 1850-1918 keeping stop loss closing above 1918, targeting 1874-1865-1853 and 1837-1823-1815. Buy in between 1854-1,815 with risk below 1815, targeting 1887-1900-1910 and 1917-1927-1940.

Silver - XAG

Silver on Wednesday made its intraday high of US$21.97/oz and low of US21.43/oz settled down by 1.46% at US$21.50/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 21.50-20.30, targeting 22.10-23.00-24.40 and 25.00-25.90- 26.20 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 Wednesday made an intra‐day high of US$76.55/bbl, an intraday low of US$75.91/bbl, and settled down by 2.96% to close at US$73.86/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 75.00-80.40 with stop loss at 80.40; targeting 74.00-73.10-72.40 and 71.90-71.00-70.20. Buy above 74.00-70.20 with risk daily closing below 70.20; targeting 75.10-77.00-78.10 and 78.95-79.65-80.30.

EUR/USD

EUR/USD on Wednesday made an intraday low of US$1.0612/EUR, a high of US$1.0697/EUR, and settled the day down by 0.385% to close at US$1.0693/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 1.0690-1.1100, targeting 1.0590-1.0520-1.0480 and 1.0450-1.0400 with stop-loss at daily closing above 1.1100. Buy above 1.0590-1.0450 with risk below 1.0450 targeting 1.0650-1.0690-1.0750 and 1.0810-1.0900-1.0945.

GBP/USD

GBP/USD on Wednesday made an intra‐day low of US$1.2033/GBP, a high of US$1.2134/GBP, and settled the day down 0.544% to close at US$1.2044/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 1.1900-1.1650 with a target of 1.2010-1.2090-1.1.2120 and 1.2170-1.2290- 1.2390 with a stop loss closing below 1.1650. Sell in between 1.2010-1.2650 with targets at 1.1900-1.1820-1.1750 and 1.1650-1.1600 with stop loss should be 1.2445.

USD/JPY

USD/JPY on Wednesday made an intra‐day low of JPY134.35/USD and made an intraday high of JPY135.05/USD and settled the day up by 0.602% at JPY134.86/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 134.90-135.10 with risk above 133.00 targeting 129.50-129.00-127.45 and 126.90-126.20-125.00. Long positions above 132.50-126.20 with targets of 133.90—134.80-135.50 and 136.50-138.10 with stops below 130.00.