Daily Markets

• Oil prices slipped on Monday as caution around U.S. debt ceiling talks and concerns about demand recovery in China offset support from lower supplies from Canada and OPEC+ producers Weak economic data reports from China in the recent weeks have sparked concerns about demand in the world's top crude importer and No. 2 oil consumer, analysts said. Last week, both oil benchmarks gained about 2%, their first weekly gain in five, after wildfires shut in large amounts of crude supply in Alberta, Canada. The impact of voluntary production cuts by the Organization of the Petroleum Exporting Countries (OPEC) and its allies including Russia, known as OPEC+, is also being felt after going into effect this month, analysts from Goldman Sachs (NYSE:GS) and JP Morgan said. Total exports of crude and oil products from the group plunged by 1.7 million barrels per day (bpd) by May 16, JP Morgan said, adding that Russian oil exports will likely fall by late May. On Saturday, the Group of Seven (G7) nations pledged at its annual leaders' meeting to enhance efforts to counter Russia's evasion of the price caps on its oil and fuel exports "while avoiding spillover effects and maintaining global energy supply", but did not provide details. Such enhancements are not expected to change the supply situation for crude and oil products, the International Energy Agency's (IEA) Executive Director Fatih Birol said, adding that the agency was sticking to its analysis for now In its latest monthly report, the IEA warned of a looming shortage in the second half when demand is expected to eclipse supply by almost 2 million bpd. "It remains to be seen if the new curbs will impact Russian oil production as the Russians have been very effective in finding ways around European and U.S. sanctions and the sanctions have proved difficult to enforce," IG's Sydney-based analyst Tony Sycamore said. The U.S. oil rig count fell by 11 to 575 in the week to May 19, the biggest weekly drop since September 2021, energy services firm Baker Hughes Co said.

Gold – XAU

Gold on Friday made it’s intraday high of US$1984.10/oz and low of $1953.91/oz. Gold is down by 1.040% at US$1977.69/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 Friday made its intraday high of US$24.00/oz and low of US$23.38/oz settled down by up 1.519% at US$23.84/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 Friday made an intra‐day high of US$73.52/bbl, an intraday low of US$71.15/bbl, and settled down by 0.141% to close at US$71.85/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 72.00-75.90 with stop loss at 75.90; targeting 72.40-71.50-70.10 and 69.00-68.40-67.00. Buy above 71.00-68.40 with risk daily closing below 68.40; targeting 72.40-73.50-74.10 and 75.00-76.60.

EUR/USD

EUR/USD on Monday made an intraday low of US$1.0759/EUR, a high of US$1.0828/EUR, and settled the day up by 0.1835% to close at US$1.0806/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 Friday made an intra‐day low of US$1.2391/GBP, a high of US$1.2483/GBP, and settled the day up 0.307% to close at US$1.2445/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 Friday made an intra‐day low of JPY137.41/USD, an intraday high of JPY138.70/USD, and settled the day down by 0.577% at JPY137.88/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.