Daily Markets

• Oil prices ticked up in Monday's Asian trade, reversing a weak start as a recovery in Chinese demand and a weaker dollar provided support to a market rattled by the prospect possible further U.S. interest rate increases. Market sentiment was fragile as worries about further monetary tightening by the Fed have been exacerbated by high crude oil inventories in the U.S., analysts from ANZ Bank said in a note on Monday morning. A weaker dollar makes oil cheaper for holders of other currencies, lending support to oil prices. The failure of Silicon Valley Bank and New York-based Signature Bank (NASDAQ:SBNY) and concerns about possible contagion led to a selloff in U.S. assets at the end of last week, which has also put downward pressure on the dollar. The comments come in the wake of the announcement that Riyadh and Tehran had agreed to restore diplomatic relations in a China-brokered deal, potentially paving the way to the revival of a nuclear deal that would allow exports of currently-sanctioned Iranian crude. Oil's fluctuating start to the week follows positive momentum on Friday, when U.S. employment data surprised to the upside. Data for February beat expectations, with nonfarm payrolls rising by 311,000, compared with expectations of 205,000 jobs added, according to a Reuters survey. From a medium- to long-term supply perspective, energy services firm Baker Hughes Co said on Friday U.S. energy firms this week cut the number of oil and natural gas rigs operating for a fourth week in a row for the first time since July 2020.

Gold – XAU

Gold on Monday made it’s intraday high of US$1870.09/oz and low of $1827.65/oz. Gold is up by 1.985% 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 Friday made its intraday high of US$20.78/oz and low of US19.96/oz settled up by 0.159% at US$20.52/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 Friday made an intra‐day high of US$77.16/bbl, an intraday low of US$74.86/bbl, and settled up by 1.322% to close at US$76.70/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 77.50-81.40 with stop loss at 81.40; targeting 76.00-75.10 and 74.00-73.10-72.40. Buy above 77.10-72.40 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 Friday made an intraday low of US$1.0573/EUR, a high of US$1.0700/EUR, and settled the day up by 0.346% to close at US$1.0639/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 1.0750-1.1032, targeting 1.0700-1.0590-1.0520 and 1.0480-1.0450-1.0400 with stop-loss at daily closing above 1.1032. Buy above 1.0750-1.0450 with risk below 1.0450 targeting 1.0750-1.0810-1.0890 and 1.0950-1.0990-1.10320..

GBP/USD

GBP/USD on Friday made an intra‐day low of US$1.1906/GBP, a high of US$1.2112/GBP, and settled the day up 0.919% to close at US$1.2033/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 1.2050-1.1750 with a target of 1.2120-1.2170-1.2290 and 1.2340-1.2400-1.2440 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 Friday made an intra‐day low of JPY134.10/USD and made an intraday high of JPY136.98/USD and settled the day down by 0.845% at JPY134.98/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 134.90-140.60 with risk above 140.60 targeting 133.90 and 132.90-132.00-131.60. Long positions above 133.90-131.20 with targets of 138.10-139.00 and 140.10-140.60 with stops below 130.00.