Daily Markets

• Oil prices fell on Wednesday, ending a three-day rally as an unexpected rise in U.S. oil inventories sparked demand concerns and investors awaited inflation data for a steer on U.S. interest rates. In a possible sign of weakening demand, U.S. crude inventories rose by about 3.6 million barrels in the week ended May 5 while gasoline stockpiles rose by 399,000 barrels, the American Petroleum Institute was reported as saying by market sources on Tuesday. The data defied expectations from eight analysts polled by Reuters for a drawdown of 900,000 barrels of crude and a 1.2 million barrel drop in gasoline stocks. U.S. government data on oil inventories is due on Wednesday. The surprising U.S. inventory build along with lower crude imports and April's softer export growth in China exacerbated worries about global oil demand. The market is awaiting U.S. consumer price index (CPI) figures for April on Wednesday. New York Fed President John Williams said inflation remains too high and the central bank will raise rates again if necessary, even though the Federal Reserve dropped guidance about the need for future hikes. The market is also awaiting the monthly oil report from the Organization of the Petroleum Exporting Countries (OPEC) on Thursday for clues on whether the group and its allies will need to cut output again to prop up prices. OPEC and its allies, together known as OPEC+, agreed last month to cut production by 1.16 million barrels per day (bpd) from May through to the end of the year. Meanwhile, markets were monitoring U.S. President Joe Biden and top Republican lawmakers' comments on raising the $31.4 trillion U.S. debt ceiling, fearing an unprecedented default if Congress does not act in the next three weeks.

Gold – XAU

Gold on Tuesday made it’s intraday high of US$2037.51/oz and low of $2019.35/oz. Gold is up by 0.654% at US$2034.29/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 Tuesday made its intraday high of US$25.66/oz and low of US$25.31/oz settled up by 1.025% at US$25.59/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$73.68/bbl, an intraday low of US$71.26/bbl, and settled up by 0.952% to close at US$73.45/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 72.40-75.90 with stop loss at 75.90; targeting 70.10-69.00-68.40 and 67.00-65.90. Buy above 71.50-64.30 with risk daily closing below 64.30; targeting 72.40 and 73.50-74.10-75.00.

EUR/USD

EUR/USD on Tuesday made an intraday low of US$1.0940/EUR, a high of US$1.1004/EUR, and settled the day down by 0.394% to close at US$1.0959/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 1.1090-1.1390, 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 1.0950-1.0525 with risk below 1.0525 targeting 1.1090-1.1150 and 1.1200-1.1250.

GBP/USD

GBP/USD on Tuesday made an intra‐day low of US$1.2577/GBP, a high of US$1.2639/GBP, and settled the day up 0.0174% to close at US$1.2618/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 1.2600-1.2200 with a target of 1.2640-1.2700-1.2745 and 1.2800-1.2890-1.2950 with a stop loss closing below 1.2200. Sell in between 1.2650-1.2954 with targets at 1.2590-1.2550-1.2490 and 1.2640-1.2590-1.2545 with stop loss should be 1.2954.

USD/JPY

USD/JPY on Monday made an intra‐day low of JPY134.71/USD and made an intraday high of JPY135.35/USD and settled the day up by 0.0969% at JPY135.19/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 135.50-140.60 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.