Daily Markets

• Oil fell for a fourth session on Friday, heading for its biggest weekly loss in five weeks on worries about the prospect of steep interest rate hikes in the United States slowing growth and hitting fuel demand. Expectations of ongoing rate hikes in the world's largest economy and in Europe have clouded the global growth outlook and driven both crude benchmarks down more than 5.5% so far this week, in their worst drop since early February. U.S. Federal Reserve Chair Jerome Powell has warned of higher and potentially faster rate hikes, saying the Fed was wrong in initially thinking inflation was "transitory" and was surprised by the strength of the labour market. The labour market is still seen as tight, even after the number of Americans filing new claims for unemployment benefits increased by the most in five months last week. The prospect of the U.S. jobs report on Friday leading to faster rate hikes has already triggered steep declines in financial markets, and analysts expect oil prices could also be under pressure. On the supply side, the United States was reported having privately urged some commodity traders to shed concerns about shipping price-capped Russian oil in a bid to shore up supply, which suggested more Russian oil might flow into the market. Investors are closely monitoring export cuts from Russia, which decided to trim oil output by 500,000 barrels per day in March. Reuters this week reported that Russia plans to cut oil exports and transit from its western ports in March by 10% on daily basis from February.

Gold – XAU

Gold on Friday made it’s intraday high of US$1835.58/oz and low of $1811.85/oz. Gold is up by 0.934% at US$1830.63/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 1833-1900 keeping stop loss closing above 1900, targeting 1802-1790-1774. Buy in between 1808-1761 with risk below 1761, targeting 1844 and 1853-1874-1887.

Silver - XAG

Silver on Thursday made its intraday high of US$20.28/oz and low of US19.96/oz settled up by 0.159% at US$20.05/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 20.00-18.30, targeting 20.90-22.10-23.00 and 24.40-25.00-25.90 with stop loss should be placed on the breakage below 18.00. Sell in between 20.60-26.20 with a stop loss above 26.20; targeting 20.05-19.90 and 19.50-19.01.

Oil - WTI

Crude Ol on Thursday made an intra‐day high of US$78.11/bbl, an intraday low of US$75.50/bbl, and settled down by 1.143% to close at US$75.70/bbl.

Technicals in Focus:

On daily charts, oil is sustaining below its 200DMA i.e. 68.50 which is a support level and breakage below will call for 68.40. 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 75.90-81.40 with stop loss at 81.40; targeting 75.10 and 74.00-73.10-72.40. Buy above 75.10-72.40 with risk daily closing below 72.40; targeting 75.90-77.00-78.10 and 79.55-80.30-81.00-81.90.

EUR/USD

EUR/USD on Thursday made an intraday low of US$1.0536/EUR, a high of US$1.0590/EUR, and settled the day up by 0.346% to close at US$1.0578/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 1.0590-1.0810, targeting 1.0520-1.0480 and 1.0450-1.0400 with stop-loss at daily closing above 1.0810. Buy above 1.0520-1.0450 with risk below 1.0450 targeting 1.0550-1.0590-1.0650 and 1.0690-1.0750-1.0810.

GBP/USD

GBP/USD on Thursday made an intra‐day low of US$1.1830/GBP, a high of US$1.1938/GBP, and settled the day up 0.683% to close at US$1.1923/GBP.

Technicals in Focus:

On daily charts, prices are sustaining below 200DMA (1.2112) 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 oversold 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 1.1900-1.1750 with a target of 1.2010-1.2090 and 1.2120-1.2170-1.2290 with a stop loss closing below 1.1650. Sell in between 1.2010-1.2650 with targets at 1.1820 and 1.1900-1.1820-1.1750 and 1.1650-1.1600 with stop loss should be 1.2445.

USD/JPY

USD/JPY on Thursday made an intra‐day low of JPY135.93/USD and made an intraday high of JPY137.34/USD and settled the day down by 0.866% at JPY136.13/USD.

Technicals in Focus:

In daily charts, JPY is sustaining above 200DMA (134.05), which is major 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 overbought territory and signaling to buy as it has given a positive crossover to confirm a bullish stance.

Trading Strategy: Neutral to Sell

Sell below 138.10-140.60 with risk above 140.60 targeting 135.50-134.90-133.90 and 132.90-132.00-131.60. Long positions above 136.20-131.20 with targets of 138.10-139.00 and 140.10-140.60 with stops below 130.00.