Daily Markets

• Oil prices softened in early trade on Friday, weighed on by conflicting messages from Russia and Saudi Arabia ahead of the next OPEC+ policy meeting and a stronger dollar. Benchmarks settled more than $2 per barrel lower on Thursday, after Russian Deputy Prime Minister Alexander Novak played down the prospect of further OPEC+ production cuts at its meeting in Vienna on June 4. Both prices however were still poised to post a second week of gains of slightly less than 1%. Russian President Vladimir Putin said on Wednesday that energy prices were approaching "economically justified" levels, also indicating there could be no immediate change to the group's production policy. Their remarks contrasted with comments this week from Saudi Arabian Energy Minister Prince Abdulaziz bin Salman, the de-facto leader of the Organization of Petroleum Exporting Countries (OPEC), warning short sellers to "watch out". Some investors interpreted that as a signal OPEC+ could consider further output cuts. "OPEC+ watchers always pay close attention to Russia-Saudi communication as a rising rift could bring back the risk that the 23-nation alliance could fall apart," Moya added. The higher dollar, which has strengthened for a fifth straight session against a basket of major peers, with U.S. data pointing to a resilient economy even after an aggressive rate hike cycle by the Federal Reserve, placed further downside pressures to oil futures. A stronger greenback makes dollar-denominated commodities more expensive for those holding other currencies, denting demand. Markets continued to watch U.S. debt talks, as U.S. President Joe Biden and top congressional Republican Kevin McCarthy appeared to be nearing a deal to cut spending and raise the debt ceiling. On the positive side, May supplies from OPEC+ and Russia have falling mostly in line with the earlier agreement for further output cuts. As of last week, OPEC+ members who agreed to earlier cuts have reduced their exports by 1.5 million barrels per day (bpd), while Russian exports fell 400,000 bpd from their respective peaks on April 25, with total exports from producers in the OPEC+ alliance down 1.4 million bpd month on month by May 23, JP Morgan analysts said in a note.

Gold – XAU

Gold on Thursday made it’s intraday high of US$1964.65/oz and low of $1938.80/oz. Gold is down by 0.842% at US$1940.66/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 1,941-1,900 with risk below 1,950 targeting 1966-1974-1981 and 1990-2000-2009.

Silver - XAG

Silver on Thursday made its intraday high of US$23.13/oz and low of US$22.68/oz settled down by 1.435% at US$22.72/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$74.33/bbl, an intraday low of US$70.98/bbl, and settled down by 3.24% to close at US$71.75/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 Thursday made an intraday low of US$1.0854/EUR, a high of US$1.0903/EUR, and settled the day down by 0.223% to close at US$1.0860/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 1.0790-1.1390, targeting 1.0700-1.0650-1.0600 with stop-loss at daily closing above 1.1032. Buy above 1.0710-1.0525 with risk below 1.0525 targeting 1.0810-1.1090-1.1150 and 1.1200-1.1250.

GBP/USD

GBP/USD on Thursday made an intra‐day low of US$1.2386/GBP, a high of US$1.2386/GBP, and settled the day down 0.345% to close at US$1.2320/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.