Daily Markets

• Oil prices rose on Monday as fears of a recession in the U.S., which drove prices down for three straight weeks for the first time since November, started receding. Fears that the U.S. banking crisis will slow the economy and sap fuel demand in the world's biggest oil consuming nation drove the Brent benchmark down 5.3% last week, while WTI plunged 7.1%. However a healthy U.S. jobs report for April, a weaker dollar, and expectations of supply cuts at the next meeting of the Organization of the Petroleum Exporting Countries and allies, together called OPEC+, in June, helped the benchmarks rebound about 4% each on Friday. Goldman Sachs (NYSE:GS) analysts said in a note on Saturday that concerns over near-term demand due to stress in the U.S. banking system and an industrial slowdown, and elevated global supply due to limited compliance with OPEC+ cuts were "overblown". The investment bank maintained its Brent price forecast of $95 per barrel by December and $100 by April. ANZ Research analysts said they believed that the market focus would now shift away from economic concerns to tightening oil supply. The United States is expected to report consumer price inflation figures for April on Wednesday, which could provide further clues on interest rate moves amid broad expectations that the U.S. Federal Reserve will pause rate hikes. Traders this week will also keenly watch Chinese economic indicators including trade, inflation, lending and money supply figures for April, as market participants continue to gauge economic recovery in the world's second largest oil consumer.

Gold – XAU

Gold on Friday made it’s intraday high of US$2052.88/oz and low of $1999.40/oz. Gold is down by 1.624% at US$2016.70/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 2050-2080 keeping stop loss closing above 2080, targeting 2039-2020-2009 and 1990-1981-1969. Buy in between 2,039-1,990 with risk below 1,990, targeting 2,050-2,058-2,069-2,080.

Silver - XAG

Silver on Friday made its intraday high of US$26.12/oz and low of US$25.15/oz settled down by 1.406% at US$25.65/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 Friday = made an intra‐day high of US$71.70/bbl, an intraday low of US$71.34/bbl, and settled down by 0.698% 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 70.10-75.90 with stop loss at 75.90; targeting 70.10-69.00-68.40 and 67.00-65.90. Buy above 69.00-64.30 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 Friday made an intraday low of US$1.0966/EUR, a high of US$1.1047/EUR, and settled the day up by 0.061% to close at US$1.1016/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 1.1095-1.1390, targeting 1.1050-1.0990-1.0960 and 1.0900- 1.0810-1.0750 with stop-loss at daily closing above 1.1032. Buy above 1.1050-1.0525 with risk below 1.0525 targeting 1.1090-1.1150 and 1.1200-1.1250.

GBP/USD

GBP/USD on Friday made an intra‐day low of US$1.2556/GBP, a high of US$1.2651/GBP, and settled the day down 0.489% to close at US$1.2630/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 1.2640-1.2200 with a target of 1.2745-1.2800-1.2890 and 1.2950-1.300 with a stop loss closing below 1.2200. Sell in between 1.2745-1.29540 with targets at 1.2640-1.2590-1.2545 and 1.2450-1.2400-1.2340 with stop loss should be 1.2745.

USD/JPY

USD/JPY on Friday made an intra‐day low of JPY133.87/USD and made an intraday high of JPY135.12/USD and settled the day up by 0.452% at JPY134.86/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 134.90-140.60 with risk above 140.60 targeting 137.00-136.20-134.90 and 134.00-132.90-132.20. Long positions above 134.90-130.00 with targets of 134.90-136.00-137.00 and 137.90-138.50-139.00 with stops below 130.00.