Daily Markets

• Oil prices bounced back on Thursday after dropping by more than a dollar a barrel the previous day, supported by stronger fuel demand data from the United States, the world's top oil consumer. A sharper-than-expected drop in U.S. gasoline inventories boosted prices, reflecting stronger demand for transport fuels in the U.S. However, investors remained cautious as rising global interest rates continued to drive recessionary fears. Ongoing downside risks to global growth conditions could squeeze prices into a range moving forward, with the need for a more concrete catalyst for another push higher, said Yeap. The latest U.S. data showed consumer prices rose in April, increasing the likelihood that the Federal Reserve will maintain higher interest rates, which can have the knock-on effect of reducing oil demand. Meanwhile, U.S. gasoline inventories fell by 3.2 million barrels last week, more much more than the 1.2 million barrel draw forecast by analysts, the latest data from the U.S. Energy Information Administration showed. Distillate stocks also declined, while U.S. jet fuel demand rose to its highest level since December 2019. Still the uncertain economic backdrop clouds prospects going forward, said analysts at ANZ. Meanwhile, investors are also eyeing detailed talks on raising the U.S. government's $31.4 trillion debt ceiling that kicked off on Wednesday, with Republicans continuing to insist on spending cuts. The standoff has rattled investors, sending the cost of insuring exposure to U.S. government debt to record highs, as Wall Street grows more concerned about the risk of an unprecedented default.

Gold – XAU

Gold on Wednesday made it’s intraday high of US$2048.05/oz and low of $2021.36/oz. Gold is down by 0.206% at US$2030.02/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 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 Wednesday made its intraday high of US$25.91/oz and low of US$25.21/oz settled down by 0.762% at US$25.37/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 Wednesday made an intra‐day high of US$73.79/bbl, an intraday low of US$71.76/bbl, and settled down by 0.953% to close at US$72.73/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 Wednesday made an intraday low of US$1.0940/EUR, a high of US$1.1006/EUR, and settled the day up by 0.195% to close at US$1.0980/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 Wednesday made an intra‐day low of US$1.2601/GBP, a high of US$1.2679/GBP, and settled the day up 0.038% to close at US$1.2623/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 1.2545-1.2200 with a target of 1.2590-1.2640-1.2700 and 1.2745-1.2800-1.2890 with a stop loss closing below 1.2200. Sell in between 1.2650-1.2954 with targets at 1.2550-1.2490 and 1.2640-1.2590-1.2545 with stop loss should be 1.2954.

USD/JPY

USD/JPY on Wednesday made an intra‐day low of JPY134.10/USD and made an intraday high of JPY135.46/USD and settled the day up by % at JPY134.27/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.