Daily Markets

• Oil prices rose on Tuesday on expectations of potential economic stimulus by China, healthy demand in the rest of Asia and a drop in U.S. crude stockpiles. Data from China showed that consumer inflation in March hit the slowest pace since September 2021, suggesting demand weakness persists amid an uneven economic recovery, which spurred expectations Beijing may take steps to boost growth. Crude futures also climbed as the dollar eased on expectations that the U.S. Federal Reserve is getting closer to ending its rate hike cycle. A weaker greenback makes oil cheaper for those holding other currencies. Signs of strong fuel demand in India, the world's third-biggest oil consumer, in March also supported prices. Last month, fuel consumption jumped by 5% from a year earlier to a record 4.83 million barrels per day. Oil futures have climbed more than 5% since the Organization of the Petroleum Exporting Countries (OPEC) and allies including Russia surprised the market last week with a new round of production cuts starting in May. On the U.S. supply front, industry data on U.S. crude stockpiles is due on Tuesday. Five analysts polled by Reuters estimated on average that crude inventories fell by about 1.3 million barrels in the week to April 7. A U.S. inflation report to be released on Wednesday could help investors gauge the near-term trajectory for interest rates.

Gold – XAU

Gold on Tuesday made it’s intraday high of US$2006.24/oz and low of $1981.47/oz. Gold is down by 0.044% at US$1991.02/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 2007-2080 keeping stop loss closing above 2080, targeting 1994 and 1981-1969-1950. Buy in between 1994-1959 with risk below 1959, targeting 2,034-2,050-2,058 and 2,069-2,080.

Silver - XAG

Silver on Tuesday made its intraday high of US$25.06/oz and low of US$24.65/oz settled up by 0.212% at US$24.85/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 24.60-18.30, targeting 25.00-25.90-26.30 and 26.90-27.50 with stop loss should be placed on the breakage below 18.00. Sell in between 25.00-26.20 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 Tuesday made an intra‐day high of US$81.56/bbl, an intraday low of US$79.61/bbl, and settled down by 0.841% to close at US$79.93/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 81.00-83.30 with stop loss at 84.00; targeting 78.70-77.96-77.10 and 76.00-75.00-74.25 . Buy above 80.10-74.25 with risk daily closing below 74.25; targeting 81.70 and 82.40-83.30-84.00.

EUR/USD

EUR/USD on Tuesday made an intraday low of US$1.0830/EUR, a high of US$1.0916/EUR, and settled the day down by % to close at US$1.0856/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 Tuesday made an intra‐day low of US$1.2343/GBP, a high of US$1.2441/GBP, and settled the day up 0.268% to close at US$1.2381/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 1.2490-1.2745 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 Tuesday made an intra‐day low of JPY131.82/USD and made an intraday high of JPY133.86/USD and settled the day up by 1.123% at JPY133.59/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 132.20-128.00 with targets of 132.90 and 134.00-134.90-135.0 with stops below 130.00.