Daily Markets

• Oil prices edged higher on Tuesday, spurred by worries about political instability in Russia and possible supply disruptions, as well as U.S. demand hopes ahead of the summer driving season. A clash between Moscow and Russian mercenary group Wagner was averted on Saturday after the heavily armed mercenaries withdrew from the southern city of Rostov under a deal that halted their rapid advance on the capital. Following the weekend's events, ANZ analysts said, the complacency among traders about Russian oil continuing to seep into the international market could no longer be assumed to the same extent. The challenge has fed questions about President Vladimir Putin's grip on power and some concern about possible disruption of Russian oil supply, although loadings have kept on schedule. Lower supply has already been on investors' minds, after Saudi Arabia's pledge to cut output from July. Fragile market sentiment was likely to cap any price upside, however, they warned. Oil fell about 3.6% last week on worries that further interest rate hikes by the U.S. Federal Reserve could sap demand as China's economic recovery disappoints investors. Traders were also watching for signs of a pickup in demand for transport fuels, such as gasoline, in the United States ahead of the peak summer driving season. Global gasoline demand grew by 365,000 bpd year on year, driven by strong U.S. gasoline data, with consumption at an eight-week high of 9.4 million bpd in the week of June 17, JP Morgan analysts said in a note. A Reuters poll of five analysts showed that both crude and gasoline inventories fell in the week to June 23, after crude stocks fell in the week to June 16. Official U.S. oil inventory data from the American Petroleum Institute industry group is to be released on Tuesday, followed by the Energy Information Administration the next day.

Gold – XAU

Gold on Monday made its intraday high of US$1933.27/oz and low of $1921.44/oz. Gold is down by 0.101% at US$1923.01/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 1,920-1,885 with risk below 1,880 targeting 1934-1944-1954 and 1966-1974-1981.

Silver - XAG

Silver on Monday made its intraday high of US$22.87/oz and low of US$22.09/oz settled up by 1.55% at US$22.77/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 22.05-21.60-21.00 and 20.80.

Oil - WTI

Crude Ol on Monday made an intra‐day high of US$70.11/bbl, an intraday low of US$68.75/bbl, and settled down by 0.135% to close at US69.55/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 70.10-74.70 with stop loss at 75.00; targeting 69.00-68.40-67.50. Buy above 69.00-66.50 with risk daily closing below 66.00; targeting 70.10-70.90-71.60 and 72.50-73.50-74.10.

EUR/USD

EUR/USD on Monday made an intraday low of US$1.0886/EUR, a high of US$1.0919/EUR, and settled the day up by 0.022% to close at US$1.0905/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 1.0950-1.1390, 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 Monday made an intra‐day low of US$1.2687/GBP, a high of US$1.2747/GBP, and settled the day up by 0.0889% to close at US$1.2709/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 1.2690-1.2200 with a target of 1.2750-1.2855-1.2910 and 1.2970-1.3050 with a stop loss closing below 1.2200. Sell in between 1.2800-1.3050 with targets at 1.2690-1.2650-1.2590 and 1.2520-1.2450 with stop loss should be 1.2954.

USD/JPY

USD/JPY on Monday made an intra‐day low of JPY142.67/USD, an intraday high of JPY143.86/USD, and settled the day up by 0.455% at JPY143.73/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 144.00-145.00 with risk above 145.00 targeting 143.50-142.20-141.00 and 139.70-138.90-137.90. Long positions above 143.20-136.00 with targets of 141.60-142.00-143.50 and 144.00-144.60-145.40 with stops below 136.00