Daily Markets

• Oil prices were little changed on Thursday as uncertainty over whether the United States will avoid a debt default weighed against the prospect of further OPEC+ production cuts. Some progress had been made but several issues remained unresolved in U.S. debt ceiling negotiations, House Speaker Kevin McCarthy said Thursday, as the deadline ticked closer to raise the federal government's $31.4 trillion borrowing limit or risk default. Negotiators for Democratic President Joe Biden and top congressional Republican Kevin McCarthy reconvened Wednesday at the White House to try to close a deal. In the previous session, oil prices were supported by a warning from Saudi Arabia's energy minister that short-sellers betting oil prices will fall should "watch out" for pain. Some investors took that as a signal that the Organization of Petroleum Exporting Countries and allies including Russia, together called OPEC+, could consider further output cuts at a meeting on June 4. Meanwhile, price declines were capped by an unexpected, massive fall in {{8849|U.S. crcrude oil inventories in the week to May 19, reported by the Energy Information Administration on Wednesday. U.S. crude inventories fell by 12.5 million barrels to 455.2 million barrels as imports declined. Analysts had expected an 800,000-barrel rise. Gasoline inventories dropped by 2.1 million barrels in the week to 216.3 million barrels, the EIA said, while distillate stockpiles fell by 600,000 barrels to 105.7 million barrels.

Gold – XAU

Gold on Wednesday made it’s intraday high of US$1985.13/oz and low of $1956.64/oz. Gold is down by 0.903% at US$1957.06/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 1,961-2080 keeping stop loss closing above 2009, targeting 1950-1939-1926 and 1920-1910-1900. Buy in between 1,950-1,900 with risk below 1,950 targeting 1966-1974-1981 and 1990-2000-2009.

Silver - XAG

Silver on Wednesday made its intraday high of US$23.52/oz and low of US$23.01/oz settled down by down 1.65% at US$23.05/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 23.00-18.30, targeting 23.40-24.10-24.60 and 25.00-25.90-26.30 with stop loss should be placed on the breakage below 18.00. Sell in between 23.90-27.50 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 Thursday made an intra‐day high of US$74.68/bbl, an intraday low of US$73.09/bbl, and settled up by 0.642% to close at US$74.17/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 74.50-79.75 with stop loss at 78.00; targeting 73.50-72.40-71.50 and 70.10-69.00-68.40. Buy above 73.10-68.40 with risk daily closing below 68.40; targeting 74.10-75.00-76.30 and 77.00-78.50-79.75.

EUR/USD

EUR/USD on Wednesday made an intraday low of US$1.0747/EUR, a high of US$1.0800/EUR, and settled the day down by 0.194% to close at US$1.0748/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 1.0810-1.1390, targeting 1.0750 and 1.0700-1.0650-1.0600 with stop-loss at daily closing above 1.1032. Buy above 1.0750-1.0525 with risk below 1.0525 targeting 1.0810-1.1090-1.1150 and 1.1200-1.1250.

GBP/USD

GBP/USD on Wednesday made an intra‐day low of US$1.2356/GBP, a high of US$1.2469/GBP, and settled the day down 0.388% to close at US$1.2363/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 1.2400-1.2200 with a target of 1.2410-1.2500-1.2590 and 1.2640-1.2700-1.2745 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 JPY138.22/USD, an intraday high of JPY139.45/USD, and settled the day up by 0.632% at JPY139.43/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 139.70-142.00 with risk above 142.00 targeting 138.90-138.50-137.90 and 137.00-136.20-134.90. Long positions above 138.90-133.00 with targets of 139.70 and 140.50-141.00 with stops below 133.00.