Daily Markets

• Oil prices were up $1 a barrel on Monday after top global exporter Saudi Arabia pledged to cut production by another 1 million barrels per day from July, counteracting the macroeconomic headwinds that have depressed markets. The contracts extended gains of more than 2% on Friday after the Saudi energy ministry said the kingdom's output would drop to 9 million barrels per day (bpd) in July from around 10 million bpd in May. The cut is Saudi Arabia's biggest in years. The voluntary cut pledged by Saudi on Sunday is on top of a broader deal by the Organization of the Petroleum Exporting Countries and their allies including Russia to limit supply into 2024 as the group seeks to boost flagging oil prices. The group, known as OPEC+, pumps around 40% of the world's crude and has in place cuts of 3.66 million bpd, amounting to 3.6% of global demand. Consultancy Rystad Energy said the additional cut by Saudi is likely to deepen the market deficit to more than 3 million bpd in July, which could push prices higher in the coming weeks. Goldman Sachs (NYSE:GS) analysts said the meeting was "moderately bullish" for oil markets and could boost December 2023 Brent prices by $1-$6 a barrel depending on how long Saudi Arabia maintains output at 9 million bpd over the next six months. Many of the OPEC+ reductions will have little real impact, however, as the lower targets for Russia, Nigeria and Angola bring them into line with their actual production levels. In contrast, the United Arab Emirates (UAE) was allowed to raise output targets by 200,000 bpd to 3.22 million bpd to "soothe concerns" about it possibly leaving OPEC, Sarkar said. In the United States, meanwhile, the oil rig count slumped by 15 to 555 last week, the lowest since April 2022, Baker Hughes Co said in its weekly report on Friday. U.S. drilling has slowed since December due to weaker prices, higher costs and as companies divert spending to repaying shareholders.

Gold – XAU

Gold on Friday made it’s intraday high of US$1983.33/oz and low of $1947.31/oz. Gold is down by 1.477% at US$1948.04/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 1,960-2080 keeping stop loss closing above 2009, targeting 1939 and 1926-1920-1910. Buy in between 1,940-1,900 with risk below 1,900 targeting 1954-1966-1970 and 1981-1990-2000.

Silver - XAG

Silver on Friday made its intraday high of US$24.00/oz and low of US$23.56/oz settled down by 0.9721% at US$23.61/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 Friday made an intra‐day high of US$72.19/bbl, an intraday low of US$70.03/bbl, and settled up by 2.47% to close at US71.93/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 73.50-77.00 with stop loss at 77.00; targeting 72.30-71.40*-70.10 and 69.00-68.40-67.50. Buy above 72.30-67.40 with risk daily closing below 67.40; targeting 73.50-74.10-75.00 and 76.20-77.00.

EUR/USD

EUR/USD on Friday made an intraday low of US$1.0704/EUR, a high of US$1.0778/EUR, and settled the day down by 0.502% to close at US$1.0707/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 1.0700-1.1390, targeting 1.0650-1.0600-1.0550 and 1.0510-1.0470 with stop-loss at daily closing above 1.1032. Buy above 1.0660-1.0525 with risk below 1.0525 targeting 1.0720-1.0790-1.0840 and 1.1090-1.1150-1.1200

GBP/USD

GBP/USD on Friday made an intra‐day low of US$1.2440/GBP, a high of US$1.2543/GBP, and settled the day down by 0.580% to close at US$1.2449/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 Friday made an intra‐day low of JPY138.59/USD, an intraday high of JPY140.06/USD, and settled the day up by 0.865% at JPY139.96/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.