Daily Markets

• Oil slid further on Thursday after dropping sharply from more than three-month highs in the previous session as a U.S. government credit downgrade weighed on sentiment, while concerns around supply tightness provided support. Ratings agency Fitch on Wednesday downgraded the main U.S. credit rating, reflecting an expected fiscal deterioration as well as a high and growing government debt burden. The downgrade hit investor risk appetite, pushing oil and global stock markets lower. Both benchmarks hit their highest since April 17 on Wednesday, but closed down 2% after the ratings downgrade. Some analysts saw the drop as overdone. Crude is being supported by concerns of tightening supply because of output cuts by OPEC+ - the Organization of the Petroleum Exporting Countries and allies - that are expected to be kept in place in a meeting on Friday. Underlining tighter supply, U.S. crude inventories fell by 17 million barrels last week, the largest drop in U.S. crude inventories according to records dating back to 1982, the Energy Information Administration said on Wednesday. Before the OPEC+ meeting, the Bank of England is expected to raise interest rates to a 15-year high of 5.25% from 5% on Thursday, as inflation remains the highest of the world's major economies. The decision is due at 1100 GMT.

Gold – XAU

Gold on Wednesday made its intraday high of US$1954.71/oz and low of $1932.97/oz. Gold is down by 1.09% at US$1934.64/oz.

Technicals in Focus:

In daily charts, prices are above 200DMA (1894) and breakage below will call for 1871. MACD is below the zero line and histograms are also decreasing trend, which will bring more downward stances in the upcoming sessions. RSI is in the oversold region and more downside is expected before it gets stretched. The Stochastic Oscillator is in oversold territory, giving a negative crossover to a bearish stance for intraday trade.

Trading Strategy: Sell on Strength

Sell below 1960-2009 keeping stop loss closing above 2009, targeting 1954-1944-1934 and 1900-1894-1885. Buy in between 1950-1,871 with risk below 1874 targeting 1960-1976-1985 and 2000-2009.

Silver - XAG

Silver on Wednesday made its intraday high of US$24.47/oz and low of US$23.62/oz settled down by 2.485% at US$23.70/oz.

Technicals in Focus:

On daily charts, silver is sustaining below 200DMA (22.91), breakage above will lead to 23.51. MACD is below the zero line and histograms are decreasing trend, bringing a bearish stance in the upcoming sessions. RSI is approaching the oversold region, indicating a sell 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 25.00-25.90-26.30 and 26.90-27.50 with stop loss should be placed on the breakage below 18.00. Sell in between 23.90-27.50 with a stop loss above 27.50; targeting 23.40 and 22.05-21.60-21.00.

Oil - WTI

Crude Ol on Wednesday made an intra‐day high of US$82.15/bbl, an intraday low of US$78.84/bbl, and settled down by 2.786% to close at US79.49/bbl.

Technicals in Focus:

On daily charts, oil is sustaining below its 200DMA i.e. 68.50, 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, more upside can be expected to reach the overbought region, which is highly probable.

Trading Strategy: Neutral to Sell

Sell in between 78.90-81.90 with stop loss at 81.90; targeting 78.00-77.10-76.00 and 75.50-74.90. Buy above 78.00-74.90 with risk daily closing below 74.90; targeting 78.90-79.70-80.50 and 81.20-81.90-82.50.

EUR/USD

EUR/USD on Wednesday made an intraday low of US$1.0917/EUR, a high of US$1.1019/EUR, and settled the day up by 0.421% to close at US$1.0937/EUR.

Technicals in Focus:

On daily charts, prices are sustaining above 100DMA (1.0800), which becomes immediate support, a break below will target 1.0717. MACD is above the zero line and histograms are increasing mode, bringing a bullish view. Stochastic is in oversold territory, giving negative 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 1.0940-1.1390, targeting 1.0900-1.0840 and 1.0790-1.0750-1.0660 with stop-loss at daily closing above 1.1390. Buy above 1.0900-1.0705 with risk below 1.0725 targeting 1.1060-1.1150 and 1.1210-1.1250-1.1290.

GBP/USD

GBP/USD on Wednesday made an intra‐day low of US$1.2676/GBP, a high of US$1.2804/GBP, and settled the day down by 0.504% to close at US$1.2710/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 1.2750-1.2400 with a target of 1.2800-1.2855-1.2900 and 1.2990-1.3050-1.3140 with a stop loss closing below 1.2400. Sell in between 1.2800-1.3200 with targets at 1.2750-1.2650-1.2590 and 1.2520-1.2450 with a stop loss should be 1.3140.

USD/JPY

USD/JPY on Wednesday made an intra‐day low of JPY142.23/USD, an intraday high of JPY143.47/USD, and settled the day up by 0.0034% at JPY143.31/USD.

Technicals in Focus:

In daily charts, JPY is sustaining above 100DMA (137.57), 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 sell as it has given a negative crossover to confirm a bearish stance.

Trading Strategy: Neutral to Sell

Sell below 143.20-146.00 with risk above 146.00 targeting 139.50-138.30-137.50 and 136.90-136.40-135.50. Long positions above 141.00-134.90 with targets of 142.20-143.00-144.20 and 145.00-146.00with stops below 134.00