Daily Markets

• Oil prices rose on Tuesday after OPEC+ plans to cut more production jolted markets the previous day, with investors' attention shifting to demand trends and the impact of higher prices on the global economy. Both benchmarks jumped more than 6% on Monday after the OPEC and allies including Russia, collectively known as OPEC+, rocked markets with Sunday's announcement of plans to lower output targets by a further 1.16 million barrels per day (bpd). The latest pledges bring the total volume of cuts by OPEC+ to 3.66 million bpd including a 2 million barrel cut last October, according to Reuters calculations - equal to about 3.7% of global demand. Kikukawa also noted the impact could reignite concerns about the global financial industry. The news added to investor worries about higher costs for businesses and consumers, raising fears an inflationary jolt to the world economy from rising oil prices will result in more rate hikes. Market watchers have been trying to gauge how much longer the U.S. Federal Reserve may need to keep raising interest rates to cool inflation, and whether the U.S. economy may be headed for recession. U.S. manufacturing activity slumped to the lowest level in nearly three years in March and could decline further on tighter credit and higher borrowing costs.

Gold – XAU

Gold on Monday made it’s intraday high of US$1990.39/oz and low of $1949.65/oz. Gold is up by 0.711% at US$1984.31/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 1981-2020 keeping stop loss closing above 2020, targeting 1969-1950-1940 and 1933-1921-1910. Buy in between 1969-1900 with risk below 1900, targeting 1982 and 1990-2000-2009.

Silver - XAG

Silver on Monday made its intraday high of US$24.18/oz and low of US23.55/oz settled down by 0.498% at US$23.97/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 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 Monday made an intra‐day high of US$81.62/bbl, an intraday low of US$78.93/bbl, and settled down by 0.776% to close at US$80.37/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 80.30-83.30 with stop loss at 84.00; targeting 78.70-77.96-77.10 and 76.00-75.00-74.25. Buy above 78.70-74.25 with risk daily closing below 74.25; targeting 80.30-81.00-81.70 and 82.40-83.30-84.00.

EUR/USD

EUR/USD on Monday made an intraday low of US$1.0787/EUR, a high of US$1.0916/EUR, and settled the day up by 0.4871% to close at US$1.0893/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 Monday made an intra‐day low of US$1.2273/GBP, a high of US$1.2422/GBP, and settled the day down 0.666% to close at US$1.2406/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 1.2400-1.2050 with a target of 1.2445 and 1.2490-1.2545 with a stop loss closing below 1.2050. Sell in between 1.2445-1.2745 with targets at 1.2400-1.2340-1.2240 and 1.2200-1.2170-1.2100 with stop loss should be 1.2745.

USD/JPY

USD/JPY on Monday made an intra‐day low of JPY132.19/USD and made an intraday high of JPY133.75/USD and settled the day down by 0.733% at JPY132.38/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 132.90-140.60 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.