Daily Markets

• Oil prices fell on Thursday following three sessions of gains, after Federal Reserve Chair Jerome Powell highlighted banking sector credit risks for the world's largest economy, while U.S. crude stocks rose more than expected. Both crude benchmarks settled on Wednesday at their highest closes since March 14 after the dollar slid to a six-week low. Powell said on Wednesday that banking industry stress could trigger a credit crunch, with "significant" implications for an economy that U.S. central bank officials projected would slow even more this year than previously thought. However, the weakness in the dollar has been a bright spot in promoting some resilience in oil prices, Yeap said, adding that there was still some upside room left in oil prices. Prospects of demand recovery in the world's top crude importer, China, could also keep prices supported. Goldman Sachs (NYSE:GS) said on Thursday that Chinese demand continued to surge across the commodity complex, with oil demand topping 16 million barrels per day. Consultancy Wood Mackenzie said that China was expected to account for around 40% of the increase in global oil demand this year as its economy emerged from strict lockdowns Meanwhile, U.S. crude oil stockpiles rose unexpectedly last week to their highest in nearly two years, latest data from the Energy Information Administration (EIA) showed. Crude inventories rose in the week to March 17 by 1.1 million barrels to 481.2 million barrels, the highest since May 2021. Analysts in a Reuters poll had expected a 1.6-million-barrel drop. Gross U.S. exports of crude oil and oil products hit a new high just shy of 12 million barrels per day, way above any other country's supply levels, the analysts added, citing EIA data.

Gold – XAU

Gold on Wednesday made it’s intraday high of US$1978.72/oz and low of $1934.27/oz. Gold is up by 1.515% at US$1969.49/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 1980-2020 keeping stop loss closing above 2020, targeting 1969-1950-1940 and 1933-1921-1910. Buy in between 1969-1900 with risk below 1900, targeting 1980-1990-2000 and 2009-2020.

Silver - XAG

Silver on Wednesday made its intraday high of US$23.05/oz and low of US22.26/oz settled down by 0.542% at US$22.97/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 22.60-18.30, targeting 23.00 and 24.40-25.00-25.90 with stop loss should be placed on the breakage below 18.00. Sell in between 23.00-26.20 with a stop loss above 26.20; targeting 22.05-21.60-21.00-20.05 and 19.90-19.50.

Oil - WTI

Crude Ol on Wednesday made an intra‐day high of US$71.30/bbl, an intraday low of US$68.88/bbl, and settled up by 0.675% to close at US$69.91/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 70.90-74.25 with stop loss at 74.25; targeting 70.30-69.75-68.00 and 67.10-65.80-65.00. Buy above 70.30-64.50 with risk daily closing below 64.50; targeting 70.90-71.70-72.75 and 73.50-74.25.

EUR/USD

EUR/USD on Wednesday made an intraday low of US$1.0758/EUR, a high of US$1.0911/EUR, and settled the day up by 0.8414% to close at US$1.0857/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 1.0910-1.1090, targeting 1.0810-1.0750-1.0700-1.0650 and 1.0590-1.0520-1.0480 with stop-loss at daily closing above 1.1032. Buy above 1.0850-1.0450 with risk below 1.0450 targeting 1.0700-1.0750-1.0810-1.0890 and 1.0950-1.0990-1.1030.

GBP/USD

GBP/USD on Wednesday made an intra‐day low of US$1.2207/GBP, a high of US$1.2234/GBP, and settled the day up 0.410% to close at US$1.2265/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 1.2290-1.2050 with a target of 1.2340-1.2400-1.2445 and 1.2490-1.2545 with a stop loss closing below 1.2050. Sell in between 1.2340-1.2545 with targets at 1.2290-1.2240-1.2200 and 1.2170-1.2100-1.2050 with stop loss should be 1.2445.

USD/JPY

USD/JPY on Wednesday made an intra‐day low of JPY130.99/USD and made an intraday high of JPY132.99/USD and settled the day down by 0.807% at JPY131.35/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 131.10-140.60 with risk above 140.60 targeting 130.60-130.00-129.40 and 128.90-128.00. Long positions above 130.60-128.00 with targets of 131.40-132.00-132.90 and 134.00-134.90-135.50 with stops below 130.00.