Daily Markets

• The dollar climbed to its highest in almost three months against nine other major currencies on Monday as traders slashed bets the Federal Reserve would aggressively cut interest rates this year after new economic data further diminished those odds. U.S. services sector growth picked up in January as new orders increased and employment rebounded, the Institute for Supply Management (ISM) said, suggesting economic growth momentum from the fourth quarter spilled over into the new year. ISM's non-manufacturing PMI increased to 53.4 from 50.5 in December, higher than 52.0 that economists polled by Reuters had forecast. A reading above 50 indicates growth in the services industry, which drives more than two-thirds of the economy. The data added to Friday's blockbuster U.S. jobs report that far exceeded expectations and forced the market to readjust its outlook for rate cuts, the dollar's strength and how high Treasury yields, which act to bolster the U.S. currency, can go. Treasury yields started to rise early on Monday after Fed Chair Jerome Powell said over the weekend that the U.S. central bank could "give it some time" before cutting rates. Yields rose further on news of the ISM survey. The dollar rose against all members of the G10 grouping of currencies that are among the most liquid in the world. In an interview with the CBS News show "60 Minutes" that aired on Sunday but was conducted a day before the jobs report on Thursday, Powell said the Fed could be patient in deciding when to cut its benchmark interest rate. Data on Monday showed that German exports fell more than expected in December due to weak global demand. Fed funds futures now show roughly 115 basis points (bps) worth of easing priced in for the Fed this year, down from about 150 bps at the end of last year.The pound showed little reaction to revised data that indicated Britain's unemployment rate was lower than expected at the end of the year.

Gold – XAU

Gold on Monday made its intraday high of US$2042.14/oz and low of $2014.84/oz. Gold is down by 0.720% at US$2024.92/oz.

Technicals in Focus:

On the daily charts, gold trades higher than 20DMA (1953). If it drops below this level, it could lead to 1,927. The MACD is currently below the zero line but the histograms are showing an increasing trend, indicating that there may be upward movement in the coming sessions. The RSI is currently at 45.31, which is in the neutral region, suggesting there may be more selling pressure before it rebounds. The Stochastic Oscillator is also in the oversold territory but has given a positive crossover, indicating a bullish stance for intraday trades.

Trading Strategy: Sell on Strength

Sell in between 2038-2100 keeping stop loss closing above 2107, targeting 2020-2005-1990. Buy in between 2030-1990 with risk below 1990 targeting 2039-2050-2058 and 2064-2080-2094.

Silver - XAG

Silver on Friday made its intraday high of US$22.70/oz and low of US$22.22/oz settle down by 1.572% at US$22.34/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 22.40-19.30, targeting 23.50-24.60 and 25.00-25.90 with stop loss should be placed on the breakage below 19.00. Sell in between 23.00-27.50 with a stop loss above 27.50 targeting 22.40-21.90 and 21.50-20.90-20.50.

Oil - WTI

Crude Oil on Monday made an intra‐day high of US$73.27/bbl, an intraday low of US$71.44/bbl, and settled down by 0.203% to close at US72.82/bbl.

Technicals in Focus:

On daily charts, oil is sustaining above its 100DMA i.e. 75.37, a support level, and breakage above will call for 77.48. 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 overbought region, giving a negative crossover to confirm a bearish 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 72.90-77.30 with stop loss at 77.50; targeting 72.00-71.10-70.50 and 69.90-69.10. Buy above 72.10-69.00 with risk daily closing below 69.00; targeting 72.85-73.70-74.00 and 75.75-76.50-77.30.

EUR/USD

EUR/USD on Monday made an intraday low of US$1.0722/EUR, a high of US$1.0785/EUR, and settled the day down by 0.371% to close at US$1.0741/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 1.0765-1.1100, targeting 1.0805-1.0775 and 1.0770-1.0640 with stop-loss at daily closing above 1.1100. Buy above 1.0710-1.0450 with risk below 1.0400 targeting 1.0765-1.0805-1.0890 and 1.1020-1.1105-1.1145.

GBP/USD

GBP/USD on Monday made an intra‐day low of US$1.2517/GBP, a high of US$1.2646/GBP, and settled the day down by 0.750% to close at US$1.2531/GBP.

Technicals in Focus:

On daily charts, prices are sustaining below 50DMA (1.2297) is becoming a resistance level. 14-D RSI is currently in a neutral region and direction is difficult to predict on an RSI basis. The Stochastic Oscillator is in oversold territory and gives a positive crossover to confirm a bullish 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 1.2580-1.2050 with a target of 1.2730-1.2790-1.2850 and 1.2890-1.2950 1.2990-1.3040 with a stop loss closing below 1.2050. Sell in between 1.2690-1.2950 with targets at 1.2690-1.2630-1.2540 and 1.2490-1.2440-1.2390 with a stop loss of 1.2950.

USD/JPY

USD/JPY on Monday made an intra‐day low of JPY148.26/USD an intraday high of 148.88/USD, and settled the day up by 0.219% at JPY148.66/USD.

Technicals in Focus:

In daily charts, JPY is sustaining above 100DMA (137.57), 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 148.50-151.50 with risk above 151.90 targeting 146.95-146.50145.80 and 145.00-144.0-143.00. Long positions above 147.10-140.90 with targets of 148.00-148.55-149.20 and 149.90-150.50 with stops below 140.00.