Daily Markets

• Oil prices inched up on Wednesday as investors awaited the outcome of the U.S. Federal Reserve's June meeting, key economic data from China and government data on U.S. crude stockpiles. Both benchmarks climbed more than 3% on Tuesday on hopes of rising fuel demand after China's central bank lowered a short-term lending rate. Market participants expect the U.S. central bank's Federal Open Market Committee (FOMC) will pause rate hikes amid uncertainty on both the economic outlook and the lagged effects of 10 rate hikes since March 2022. Rate hikes strengthen the dollar, making commodities denominated in the U.S. currency more expensive for holders of other currencies, and weigh on oil prices. A pause in hikes would spur economic growth and oil demand, supporting prices. Economists expect the Bank of Canada to raise interest rates again in July to 5.00% after a surprise 25 basis point increase last week. The European Central Bank is also expected to hike interest rates by another quarter percentage point on Thursday to tame stubborn inflation. But the Bank of Japan, which will announce its plan on Friday, is expected to maintain its ultra-loose policy. On the supply side, U.S. crude oil stocks rose by about 1 million barrels in the week ended June 9, according to market sources citing American Petroleum Institute figures, contrary to an average estimate for a 500,000 barrel decline from analysts polled by Reuters. Government data on stockpiles is due later in the day. Meanwhile, OPEC+ has granted Russia a slightly higher oil production baseline, meaning Russia can produce more under the latest quotas than previously agreed.

Gold – XAU

Gold on Tuesday made its intraday high of US$1970.73/oz and low of $1939.94/oz. Gold is down by 0.713% at US$1943.28/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 1,955-2080 keeping stop loss closing above 2009, targeting 1944-1936 and 1926-1920-1910. Buy in between 1,944-1,900 with risk below 1,900 targeting 1955-1966-1974 and 1981-1990-2000.

Silver - XAG

Silver on Tuesday made its intraday high of US$24.39/oz and low of US$23.58/oz settled down by 1.63% at US$23.58/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 24.10-27.50 with a stop loss above 27.50; targeting 23.60-23.00 and 22.05-21.60-21.00.

Oil - WTI

Crude Ol on Tuesday made an intra‐day high of US$69.93/bbl, an intraday low of US$67.28/bbl, and settled up by 2.96% to close at US69.40/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 71.00-74.30 with stop loss at 73.00; targeting 67.50-66.80-65.60 and 65.00-64.10 Buy above 70.10-64.10 with risk daily closing below 64.00; targeting 72.30 and 73.50-74.10-75.00.

EUR/USD

EUR/USD on Tuesday made an intraday low of US$1.0750/EUR, a high of US$1.0822/EUR, and settled the day up by 0.349% to close at US$1.0792/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 1.0600-1.0550 and 1.0510-1.0470 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 and 1.1090-1.1150-1.1200

GBP/USD

GBP/USD on Monday made an intra‐day low of US$1.2486/GBP, a high of US$1.2598/GBP, and settled the day down by 0.401% to close at US$1.2509/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 1.2520-1.2200 with a target of 1.2590 and 1.2640-1.2700-1.2745 with a stop loss closing below 1.2200. Sell in between 1.2590-1.2954 with targets at 1.2450-1.2390-1.2320 and 1.2290-1.2250-1.2205 with stop loss should be 1.2954.

USD/JPY

USD/JPY on Tuesday made an intra‐day low of JPY138.99/USD, an intraday high of JPY140.30/USD, and settled the day up by 0.439% at JPY140.19/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 139.70-138.90-138.50 and 137.90-137.00-136.20. Long positions above 139.00-136.00 with targets of 139.60-140.50-141.00 and 141.60-142.00-143.50 with stops below 133.00.