Daily Markets

• Oil prices fell on Thursday as traders warily watched for signs of progress on talks to raise the U.S. debt ceiling, after surging nearly 3% in the previous session on optimism over U.S. fuel demand. A sharp plunge in U.S. gasoline inventories due to demand surging to the highest levels since 2021, and optimism surrounding negotiations over the U.S. debt ceiling, helped the main crude benchmarks settle more than $2 higher on Wednesday. President Joe Biden and top U.S. congressional Republican Kevin McCarthy on Wednesday underscored their determination to reach a deal soon to raise the federal government's $31.4 trillion debt ceiling and avoid an economically catastrophic default. On Thursday, investors were "awaiting further evidence that a deal will happen soon," said Edward Moya, an analyst at OANDA. Also weighing on prices was the increased probability of an interest rate hike by the U.S. Federal Reserve. The strength of April U.S. economic data, in addition to improving optimism about the debt ceiling negotiations and the health of regional banking stocks overnight have strengthened market expectations of a further hike, ANZ Research said in a note on Thursday. After a months-long standoff, Biden and McCarthy on Tuesday agreed to negotiate directly. A debt agreement needs to be reached and passed by both chambers of Congress before the government runs out of money to pay its bills, which could be as soon as June 1.

Gold – XAU

Gold on Wednesday made it’s intraday high of US$1992.93/oz and low of $1974.91/oz. Gold is down by 0.367% at US$1981.41/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 1,981-2080 keeping stop loss closing above 2080, targeting 2039-2020-2009 and 1990-1981-1969. Buy in between 1,974-1,966 with risk below 1,966 targeting 1981-1990-2000 and 2009-2020-2039.

Silver - XAG

Silver on Wednesday made its intraday high of US$23.87/oz and low of US$23.53/oz settled up by 0.0126% at US$23.73/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 23.50-18.30, targeting 24.10-24.60-25.00 and 25.90-26.30-26.90 with stop loss should be placed on the breakage below 18.00. Sell in between 24.10-27.50 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$71.73/bbl, an intraday low of US$70.42/bbl, and settled down by 1.025% to close at US$70.54/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 73.00-75.90 with stop loss at 75.90; targeting 72.40-71.50-70.10 and 69.00-68.40-67.00. Buy above 72.40-68.40 with risk daily closing below 68.40; targeting 73.50-74.10-75.00 and 76.60.

EUR/USD

EUR/USD on Wednesday made an intraday low of US$1.0809/EUR, a high of US$1.0872/EUR, and settled the day down by 0.201% to close at US$1.0838/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 1.0800-1.0525 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$1.2509/GBP, a high of US$1.2509/GBP, and settled the day up 0.032% to close at US$1.2485/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 1.2430-1.2200 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 1.2490-1.2954 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 JPY136.28/USD and made an intraday high of JPY137.68/USD and settled the day up by 0.950% at JPY137.65/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 137.00-140.60 with risk above 140.60 targeting 137.00-136.20-134.90 and 134.00-132.90-132.20. Long positions above 136.00-130.00 with targets of 136.00-137.00 and 137.90-138.50-139.00 with stops below 130.00.