Daily Markets

• Oil prices rose for a second day on Tuesday, supported by U.S. plans to purchase oil for its Strategic Petroleum Reserve (SPR) and by raging wildfires in Canada that fuelled supply worries. A raft of weaker than expected Chinese data that suggested a soft economy failed to dampen prices, with the market instead focusing on higher refinery throughput in the world's second-biggest oil consumer. The U.S. Department of Energy said on Monday it would buy 3 million barrels of crude oil for the SPR for delivery in August, and asked that offers be submitted by May 31. China's oil refinery throughput in April rose 18.9% from a year earlier to the second-highest level on record, data showed on Tuesday. Last week, Brent and WTI futures fell for a fourth straight week over fears of a U.S. recession and risks of a historic default on government debt in early June. The benchmarks last recorded a similar streak of weekly declines in September 2022. Oil prices on Tuesday also drew support from supply worries stemming from wildfires in Canada. The widespread blazes in Alberta, Canada forced more than 30,000 people out of their homes at one point and shuttered at least 319,000 barrels of oil equivalent per day (boepd), or 3.7% of national production. Global crude supplies could also tighten in the second half as OPEC+ - the Organization of the Petroleum Exporting Countries and allies including Russia - plan additional output cuts. On the other hand, U.S. oil output from the seven biggest shale basins is due to rise in June to the highest on record, data from the Energy Information Administration showed. Looking ahead, analysts are cautious on the momentum of the current price rebound. The global macroeconomic situation and Europe's energy demand-supply fundamentals will be key price drivers in the second half of 2023, said CMC Markets analyst Leon Li.

Gold – XAU

Gold on Monday made it’s intraday high of US$2022.07/oz and low of $2007.11/oz. Gold is up by 0.438% at US$2016.19/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 2020-2080 keeping stop loss closing above 2080, targeting 2039-2020-2009 and 1990-1981-1969. Buy in between 2,000-1,966 with risk below 1,966 targeting 2020-2039-2,050-and 2,058-2,069-2,080.

Silver - XAG

Silver on Monday made its intraday high of US$24.20/oz and low of US$23.87/oz settled up by 0.715% at US$24.08/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 24.00-18.30, 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 25.00-27.50 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 Monday made an intra‐day high of US$71.644/bbl, an intraday low of US$69.36/bbl, and settled up by 0.256% to close at US$71.25/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 71.00-75.90 with stop loss at 75.90; targeting 70.10-69.00-68.40 and 67.00-65.90. Buy above 70.80-64.30 with risk daily closing below 64.30; targeting 70.90-71.50-72.40 and 73.50-74.10-75.00.

EUR/USD

EUR/USD on Monday made an intraday low of US$1.0844/EUR, a high of US$1.0890/EUR, and settled the day down by 0.114% to close at US$1.0873/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 1.0900-1.1390, targeting 1.0845- 1.0810-1.0750 and 1.0700-1.0650 with stop-loss at daily closing above 1.1032. Buy above 1.0845-1.0525 with risk below 1.0525 targeting 1.1090-1.1150 and 1.1200-1.1250.

GBP/USD

GBP/USD on Monday made an intra‐day low of US$1.2441/GBP, a high of US$1.2533/GBP, and settled the day up 0.661% to close at US$1.2527/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 1.2590-1.2640-1.2700 and 1.2745-1.2800-1.2890 with a stop loss closing below 1.2200. Sell in between 1.2520-1.2954 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 Monday made an intra‐day low of JPY135.62/USD and made an intraday high of JPY136.31/USD and settled the day up by 0.337% at JPY136.09/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 136.00-140.60 with risk above 140.60 targeting 137.00-136.20-134.90 and 134.00-132.90-132.20. Long positions above 135.40-130.00 with targets of 136.00-137.00 and 137.90-138.50-139.00 with stops below 130.00.