Daily Markets

• Oil futures dipped on Thursday amid demand fears after the Federal Reserve chairman hinted at further interest rate hikes, while traders awaited official U.S. inventory data following an industry report that showed an unexpected draw in crude stocks. The benchmarks had gained a dollar a barrel in the previous session as U.S. corn and soybean prices raced to multi-month highs, raising expectations that crop shortfalls around the globe could lower biofuels blending and increase oil demand. However, the market was cautious as Fed Chair Jerome Powell in congressional testimony on Wednesday reinforced that the central bank's objective was to rein in inflation and said two more 25-basis point rate hikes by year end was "a pretty good guess". Higher interest rates ultimately increase borrowing costs for consumers, which could slow economic growth and reduce oil demand Oil prices held on to most of the previous session's gains as the market kept a lookout for fresh drivers, including signs of Chinese demand optimism and the latest U.S. inventory data. Meanwhile, official inventory data from the U.S. Energy Information Administration is due later on Thursday. The report was delayed by a day following the Juneteenth public holiday on Monday. In a preliminary indicator, data from the American Petroleum Institute, an industry group, showed|U.S. crude oil inventories fell by about 1.2 million barrels in the week ended June 16, defying analysts' forecasts for a build of 300,000 barrels. However, oil prices could rise as muted increases in U.S. oil production and cuts by the OPEC+ producing-nations group will limit crude supply in the months ahead, an executive at U.S. shale producer EOG Resources said on Wednesday.

Gold – XAU

Gold on Thursday made its intraday high of US$1939.37/oz and low of $1919.06/oz. Gold is down by 0.167% at US$1932.70/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 1,934-2000 keeping stop loss closing above 2000, targeting 1955-1944-1936 and 1926-1920-1910. Buy in between 1,920-1,1885 with risk below 1,880 targeting 1934-1944-1954 and 1966-1974-1981.

Silver - XAG

Silver on Thursday made its intraday high of US$23.16/oz and low of US$23.04/oz settled down by 2.17% at US$22.64/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 22.50-18.30, targeting 22.90-23.40-24.10 and 24.60-25.00-25.90-26.30 with stop loss should be placed on the breakage below 18.00. Sell in between 22.90-27.50 with a stop loss above 27.50; targeting 22.90-23.60-23.00 and 22.05-21.60-21.00.

Oil - WTI

Crude Ol on Thursday made an intra‐day high of US$72.69/bbl, an intraday low of US$70.78/bbl, and settled up by 2.20% to close at US72.39/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 72.55-74.70 with stop loss at 75.00; targeting 71.60-70.90-70.10 and 69.00-68.40-67.50. Buy above 71.60-67.50 with risk daily closing below 67.50; targeting 72.50-73.50-74.10 and 75.00-75.90-76.50.

EUR/USD

EUR/USD on Thursday made an intraday low of US$1.0904/EUR, a high of US$1.0990/EUR, and settled the day up by 0.638% to close at US$1.0985/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 1.0990-1.1390, targeting 1.0600-1.0550 and 1.0510-1.0470 with stop-loss at daily closing above 1.1390. Buy above 1.0900-1.0525 with risk below 1.0525 targeting 1.0970-1.1020-1.1090 and 1.1150-1.1210-1.1390.

GBP/USD

GBP/USD on Wednesday made an intra‐day low of US$1.2690/GBP, a high of US$1.2801/GBP, and settled the day up by 0.180% to close at US$1.2768/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 1.2750-1.2200 with a target of 1.2855-1.2910 and 1.2970-1.3050 with a stop loss closing below 1.2200. Sell in between 1.2800-1.3050 with targets at 1.2750-1.2690-1.2650 and 1.2520-1.2450 with stop loss should be 1.2954.

USD/JPY

USD/JPY on Thursday made an intra‐day low of JPY141.25/USD, an intraday high of JPY142.35/USD, and settled the day up by 0.295% at JPY141.85/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 141.90-145.00 with risk above 145.00 targeting 141.00-139.70-138.90 and 137.90-137.00-136.20. Long positions above 141.00-136.00 with targets of 141.60-142.00-143.50 and 144.00-144.60-145.40 with stops below 136.00