Daily Markets

• Oil prices rose on Friday after a U.S. debt ceiling deal averted a default in the world's biggest oil consumer, while attention turned to a meeting of OPEC ministers and their allies at the weekend. Markets were reassured by a bipartisan deal to suspend the limit on the U.S. government's $31.4 billion debt ceiling, which staved off a sovereign default that would have rocked global financial markets. Earlier signals of a potential pause in rate hikes by the Federal Reserve also provided support to oil prices, not least by weighing on the U.S. dollar, making oil cheaper for holders of other currencies. Investor attention is now fixed on the June 4 meeting of the Organization of the Petroleum Exporting Countries and allies including Russia, collectively called OPEC+. OPEC+ in April announced a surprise cut of 1.16 million barrels per day in April, but the gains from that move have since been retraced and prices are below pre-cut levels. But signals on any fresh cut have been varied, with Reuters reporting and bank analysts indicating that further output cuts are unlikely. On the demand side, the U.S. Institute for Supply Management (ISM) said its manufacturing PMI fell to 46.9 last month, the seventh-straight month that the PMI stayed below 50, indicating a contraction in activity. Manufacturing data out of China painted a mixed picture. Thursday's better-than-expected Caixin/S&P Global China manufacturing PMI contrasted with the previous day's official government data that reported factory activity in May had contracted to the lowest level in five months.

Gold – XAU

Gold on Thursday made it’s intraday high of US$1983.03/oz and low of $1953.25/oz. Gold is up by 0.7550% at US$1977.29/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 1,980-2080 keeping stop loss closing above 2009, targeting 1966-1954-1939 and 1926-1920-1910. Buy in between 1,974-1,900 with risk below 1,900 targeting 1981-1990-2000 and 2009-2022-2030.

Silver - XAG

Silver on Thursday made its intraday high of US$23.91/oz and low of US$23.26/oz settled up by 1.66% at US$23.86/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 23.40-18.30, targeting 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 24.00-27.50 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$71.08/bbl, an intraday low of US$67.56/bbl, and settled up by 3.808% to close at US$70.21/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 71.40-75.00 with stop loss at 75.00; targeting 70.10-68.40-67.50 and 66.85-65.60. Buy above 70.10-65.40 with risk daily closing below 65.40; targeting 71.40-72.30 and 73.50-74.10-75.00.

EUR/USD

EUR/USD on Thursday made an intraday low of US$1.0767/EUR, a high of US$1.0767/EUR, and settled the day up by 0.686% to close at US$1.0761/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 1.0750-1.0525 with risk below 1.0525 targeting 1.0790-1.0840-1.1090 and 1.1150-1.1200-1.1250.

GBP/USD

GBP/USD on Thursday made an intra‐day low of US$1.2400/GBP, a high of US$1.2538/GBP, and settled the day up 0.688% to close at US$1.2524/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 1.2350-1.2200 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 1.2410-1.2954 with targets at 1.2320-1.2290-1.2250 and 1.2205-1.2175 with stop loss should be 1.2954.

USD/JPY

USD/JPY on Wednesday made an intra‐day low of JPY138.42/USD, an intraday high of JPY139.94/USD, and settled the day down by 0.395% at JPY138.76/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 140.50-142.00 with risk above 142.00 targeting 139.70-138.90-138.50 and 137.90-137.00-136.20. Long positions above 139.70-136.00 with targets of 140.50-141.00-141.60 and 142.00-143.50-144.00 with stops below 133.00.