Daily Markets

• Oil prices rebounded on Friday from losses of more than 1% the previous day as investors turned cautiously optimistic over the fading risk of a U.S. debt default. Earlier this week, U.S. President Joe Biden and Speaker of the House of Representatives Kevin McCarthy reiterated their aim to strike a deal to raise the $31.4 trillion federal debt ceiling, agreeing to talk as soon as Sunday. Sentiment remains mixed as investors juggle optimism over avoidance of a U.S. debt default with inflation data that could portend more interest rate hikes from global central banks. U.S. inflation does not seem to be cooling fast enough to allow the Federal Reserve to pause its interest-rate hike campaign, according to two Fed policymakers. The potential for additional rate hikes increases concerns about demand weakness in the United States, said analysts from National Australia Bank (OTC:NABZY). The analysts said, however, there is upside to prices as they expect China's demand to continue improving throughout 2023, which should offset the slowdown in OECD demand. China's oil refinery throughput in April rose 18.9% from a year earlier to the second-highest level on record, data showed earlier this week. Chinese refiners maintained high runs to meet recovering domestic fuel demand and build stockpiles ahead of the summer travel season.

Gold – XAU

Gold on Thursday made it’s intraday high of US$1985.90/oz and low of $1951.84/oz. Gold is down by 1.212% at US$1957.27/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 Thursday made its intraday high of US$23.77/oz and low of US$23.31/oz settled down by 1.06% at US$23.48/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 Thursday made an intra‐day high of US$72.93/bbl, an intraday low of US$71.51/bbl, and settled down by 1.048% to close at US$71.98/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 Thursday made an intraday low of US$1.0761/EUR, a high of US$1.0847/EUR, and settled the day down by 0.640% to close at US$1.0769/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 Thursday made an intra‐day low of US$1.2390/GBP, a high of US$1.2492/GBP, and settled the day down 0.626% to close at US$1.2407/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 Thursday made an intra‐day low of JPY137.28/USD and made an intraday high of JPY138.74/USD and settled the day up by 0.625% at JPY138.68/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.