Daily Markets

• Oil prices ticked down in Asian trade on Friday as bullish sentiment about Chinese demand and potential Middle Eastern supply disruptions was tempered by uncertainty over U.S. economic data to be released later in the day. Markets are now waiting for U.S. spending and inflation data on Friday and the resulting impact on the U.S. dollar. Prices have ticked up this week over optimism surrounding China's economic recovery. China's manufacturing activity rose in March at a slower pace compared with a record-breaking expansion in February, but still exceeded expectations by economists in a Reuters poll. Industrial activity in China has become a key determinant of prices in recent weeks after its ending of coronavirus-related restrictions, amid weaker global demand. Oil prices are set to cap a second straight week of gains after the largest bank failure after the 2008 financial crisis spooked traders and roiled markets. Worries about a full-blown global banking crisis have abated after two banks, in the U.S. and Europe, were rescued. Prices rose more than 1% on Thursday because of lower U.S. crude stockpiles and a halt to exports from Iraq's Kurdistan region, offseting pressure from a smaller-than-expected cut to Russian supplies. Producers have shut in or reduced output at several oilfields in the semi-autonomous Kurdistan region of northern Iraq following a halt to the northern export pipeline. More outages are on the horizon. The U.S. Energy Information Administration said U.S. crude oil stockpiles fell unexpectedly in the week to March 24 to a two-year low.

Gold – XAU

Gold on Thursday made it’s intraday high of US$1984.17/oz and low of $1955.36/oz. Gold is up by 0.814% at US$1980.08/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 1969-2020 keeping stop loss closing above 2020, targeting 1969-1950-1940 and 1933-1921-1910. Buy in between 1959-1900 with risk below 1900, targeting 1959-1969-1980 and 1990-2000-2009.

Silver - XAG

Silver on Thursday made its intraday high of US$23.92/oz and low of US23.22/oz settled up by 2.522% at US$23.89/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 23.50-18.30, 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 24.00-26.20 with a stop loss above 26.20; targeting 23.60-23.00-22.05-21.60 and 21.00-20.05-19.90.

Oil - WTI

Crude Ol on Thursday made an intra‐day high of US$74.63/bbl, an intraday low of US$72.65/bbl, and settled up by 1.939% to close at US$74.36/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 75.00-78.70 with stop loss at 78.70; targeting 73.00-72.25-71.70 and 70.90-70.30-69.75. Buy above 74.25-69.75 with risk daily closing below 69.00; targeting 74.25-75.00-76.00 and 77.10-77.96.

EUR/USD

EUR/USD on Thursday made an intraday low of US$1.0822/EUR, a high of US$1.0925/EUR, and settled the day up by 0.570% to close at US$1.0904/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 1.0900-1.1090, targeting 1.0810-1.0750-1.0700 and 1.0650-1.0590-1.0520-1.0480 with stop-loss at daily closing above 1.1032. Buy above 1.0810-1.0525 with risk below 1.0525 targeting 1.0910 and 1.0950-1.0990-1.1030.

GBP/USD

GBP/USD on Thursday made an intra‐day low of US$1.2292/GBP, a high of US$1.2392/GBP, and settled the day up 0.592% to close at US$1.2385/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 1.2340-1.2050 with a target of 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 1.2340-1.2240-1.2200 and 1.2170-1.2100-1.2050 with stop loss should be 1.2445.

USD/JPY

USD/JPY on Thursday made an intra‐day low of JPY132.19/USD and made an intraday high of JPY132.95/USD and settled the day down by 0.144% at JPY132.64/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 132.00-140.60 with risk above 140.60 targeting 131.40-130.60-130.00-129.40 and 128.90-128.00. Long positions above 132.00-128.00 with targets of 131.40-132.00-132.90 and 134.00-134.90-135.0 with stops below 130.00.