Daily Markets

• Oil prices extended losses on Wednesday after plunging 5% in the previous session, as investors fretted about the health of the U.S. economy ahead of an expected Federal Reserve interest rate hike later in the day. Both benchmarks closed at their lowest since late March in the previous session, when they also recorded their biggest one-day percentage declines since early January. He added that concerns about the health of the U.S. banking sector and downbeat U.S. jobs data "did nothing to dispel fears that the U.S. economy is barrelling towards a shallow recession". The Fed is expected to hike interest rates by an additional 25 basis points on Wednesday to combat inflation, while the European Central Bank is also expected to raise rates at its regular policy meeting on Thursday. More hikes could slow economic growth and hit energy demand. In Australia, the central bank stunned markets by hiking its cash rate on Tuesday and warned that further tightening may be needed to combat high inflation. Concerns about diesel demand in recent months, meanwhile, have pushed down U.S. heating oil futures to their lowest level since December 2021. Energy prices are also under pressure after data from China over the weekend showed manufacturing activity fell unexpectedly in April. China is the world's largest energy consumer and top buyer of crude oil. The reopening of China's economy will be pivotal for Asia, the International Monetary Fund said as it raised its economic forecast for the region on Tuesday. But it warned of risks from persistent inflation and global market volatility driven by Western banking-sector woes. Meanwhile, U.S. crude stockpiles fell for a third week in a row for the first time since December, down some 3.9 million barrels last week, according to market sources citing American Petroleum Institute figures on Tuesday., Official stockpile data from the U.S. Energy Information Administration is due at on Wednesday. A Reuters survey found that OPEC oil output fell 190,000 barrels-per day in April, mainly driven by Iraq and Nigeria. Output is set to drop further in May as a new round of voluntary cuts unveiled on April 2 takes effect.

Gold – XAU

Gold on Tuesday made it’s intraday high of US$2019.26/oz and low of $1978.38/oz. Gold is down by 1.73% at US$2016.38oz.

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 2009-2080 keeping stop loss closing above 2080, targeting 1981-1969-1950. Buy in between 1991-1959 with risk below 1959, targeting 2009-2,020-2,034 and 2,050-2,058-2,069-2,080.

Silver - XAG

Silver on Tuesday made its intraday high of US$25.47/oz and low of US$25.47/oz settled up by 1.606% at US$25.36/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 Tuesday made an intra‐day high of US$76.00/bbl, an intraday low of US$71.34/bbl, and settled dow by 5.47% to close at US$71.46/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 70.90-75.90 with stop loss at 75.90; targeting 70.10-69.00-68.40 and 67.00-65.90. Buy above 69.50-64.30 with risk daily closing below 64.30; targeting 70.80-71.50-72.40 and 73.50-74.10-75.00.

EUR/USD

EUR/USD on Tuesday made an intraday low of US$1.0941/EUR, a high of US$1.1007/EUR, and settled the day up by 0.255% to close at US$1.0998/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 1.1050-1.1250, 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$1.2434/GBP, a high of US$1.2511/GBP, and settled the day down 0.497% to close at US$1.2465/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 Tuesday made an intra‐day low of JPY136.30/USD and made an intraday high of JPY137.76/USD and settled the day down by 0.696% at JPY136.52/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 137.90-140.60 with risk above 140.60 targeting 137.00-136.20-134.90 and 134.00-132.90-132.20. Long positions above 137.00-130.00 with targets of 137.90-138.50-139.00 and 139.90-140.50 with stops below 130.00.