Daily Markets

• Oil prices crept higher on Friday, but headed for a second week of declines as disappointing U.S. economic data and uncertainty over further interest rate hikes weighed on the demand outlook. Both benchmark contracts had fallen by about 3.5% this week as of 0656 GMT. U.S. economic growth slowed more than expected in the first quarter, although jobless claims fell in the week ending April 22, data showed on Thursday. Investors are also worried that potential interest rate hikes by inflation-fighting central banks could slow economic growth and dent energy demand in the United States, Britain and the European Union. The U.S. Federal Reserve, the Bank of England and the European Central Bank are all expected to raise rates at their coming meetings and oil investors are waiting for guidance on the future direction of interest rates and the global economy. The Fed meets over May 2-3. U.S. stocks closed higher on Thursday as strong earnings helped investors look past signs of economic weakness. On the supply side, Russian Deputy Prime Minister Alexander Novak said on Thursday the OPEC+ group saw no need for further output cuts despite lower-than-expected Chinese demand, but that the organisation could always adjust policy if necessary. The Organization of the Petroleum Exporting Countries (OPEC) and its allies including Russia, known as OPEC+, this month announced a combined output reduction of around 1.16 million barrels per day, which sent oil prices higher. The market rallied following the OPEC+ announcement, but has weakened in response to concerns about recession and the impact that would have on demand. Earlier this week, Energy Information Administration data showed that U.S. crude oil and gasoline inventories fell more than expected last week, as demand for the motor fuel picked up ahead of the peak summer driving season.

Gold – XAU

Gold on Thursday made it’s intraday high of US$2003.24/oz and low of $1974.13/oz. Gold is down by 0.0839% at US$1987.68/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 2000-2080 keeping stop loss closing above 2080, targeting 2009-1994 and 1981-1969-1950. Buy in between 1994-1959 with risk below 1959, targeting 2009-2,020-2,034 and 2,050-2,058-2,069-2,080.

Silver - XAG

Silver on Thursday made its intraday high of US$25.12/oz and low of US$24.49/oz settled up by 0.132% at US$24.91/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 25.00-18.30, 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 25.90-27.50 with a stop loss above 27.50; targeting 25.00-24.60-23.60-23.00 and 22.05-21.60-21.00.

Oil - WTI

Crude Ol on Thursday made an intra‐day high of US$75.19/bbl, an intraday low of US$73.95/bbl, and settled up by 0.516% to close at US$74.74/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 75.00-84.40 with stop loss at 84.40; targeting 74.10-73.50-72.40 and 71.50-70.80. Buy above 74.10-70.80 with risk daily closing below 70.80; targeting 75.00-76.05-76.70 and 77.30-78.00-79.60.

EUR/USD

EUR/USD on Thursday made an intraday low of US$1.09991/EUR, a high of US$1.1062/EUR, and settled the day down by 0.110% to close at US$1.1027/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 1.0990-1.1250, targeting 1.0990-1.0960-1.0900 and 1.0810-1.0750-1.0700 with stop-loss at daily closing above 1.1032. Buy above 1.0950-1.0525 with risk below 1.0525 targeting 1.1030-1.1090-1.1150 and 1.1200-1.1250.

GBP/USD

GBP/USD on Tuesday made an intra‐day low of US$1.2385/GBP, a high of US$1.2506/GBP, and settled the day up 0.542% 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 1.2445-1.2200 with a target of 1.2490-1.2545 and 1.2600-1.2640-1.2745 with a stop loss closing below 1.2200. Sell in between 1.2545-1.2745 with targets at 1.2450-1.2400-1.2340 and 1.2240-1.2200-1.2170 with stop loss should be 1.2745.

USD/JPY

USD/JPY on Thursday made an intra‐day low of JPY133.19/USD and made an intraday high of JPY133.93/USD and settled the day down by 0.181% at JPY133.89/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 134.00-140.60 with risk above 140.60 targeting 134.00-132.90-132.20 and 131.40-130.60-130.00. Long positions above 132.90-130.00 with targets of 134.00-134.90-135.50 and 136.00-137.00-137.90 with stops below 130.00.