Daily Markets

• The U.S. dollar was largely steady on Wednesday, as traders avoided making big bets ahead of congressional testimony from Federal Reserve Chair Jerome Powell, as well as a European Central Bank rate decision and U.S. jobs data later this week. In cryptocurrencies, bitcoin was picking up momentum again, although it stayed below a record high reached in a volatile overnight session. The absence of catalysts kept the dollar in a tight range, having slipped overnight on data showing the U.S. services industry growth slowed a bit last month. The February U.S. jobs report on Friday stands as a test for the rates outlook, with the potential to rock markets if employment surprises to the upside. Traders were also waiting on Fed Chair Powell's first day of testimony before Congress on the state of the U.S. economy, where he's expected to reinforce the Fed will wait for more data before making any rate cuts. The Fed chief may also echo comments that strong core inflation in January hasn't significantly changed the central bank's outlook, said Carol Kong, a currency strategist at the Commonwealth Bank of Australia (OTC:CMWAY). The euro was flat at $1.0855 as traders braced for the ECB's interest rate decision later on Thursday. The central bank is expected to leave rates at a record 4%, putting the focus on clues about when cuts may begin and updates to economic projections. Charu Chanana, head of currency strategy at Saxo, said she doesn't expect the ECB to send a clear dovish message given that eurozone inflation dipped less than expected last month. Business activity in the euro zone showed signs of recovery in February, according to a survey on Tuesday. Markets are also keeping a close eye on the world's largest cryptocurrency, bitcoin, after it surged to a record high overnight before retreating sharply. Bitcoin has rallied hard since October as investors poured money into U.S. spot exchange-traded crypto products and on the prospect that global interest rates may fall.

Gold – XAU

Gold on Tuesday made its intraday high of US$2141.34/oz and low of $2110.39/oz. Gold is up by 0.629% at US$2127.64/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 2129-2161 keeping stop loss closing above 2161, targeting 2074-2066-2058 and 2048-2038-2024. Buy in between 2120-2008 with risk below 2008 targeting 2129-2140-2160.

Silver - XAG

Silver on Monday made its intraday high of US$24.21/oz and low of US$23.60/oz settle down by 0.888% at US$23.65/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 23.50-19.30, targeting 23.90-24.60 and 25.00-25.90 with stop loss should be placed on the breakage below 19.00. Sell in between 23.90-27.50 with a stop loss above 27.50 targeting 23.20-22.40-21.90 and 21.50-20.90-20.50.

Oil - WTI

Crude Oil on Tuesday made an intra‐day high of US$78.94/bbl, an intraday low of US$77.21/bbl, and settled down by 1.449% to close at US77.65/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 79.00-83.30 with stop loss at 83.30; targeting 79.00-78.00-76.50 and 75.75-74.40-73.70. Buy above 77.75-71.00 with risk daily closing below 71.00; targeting 79.00 and 79.90-80.80.

EUR/USD

EUR/USD on Tuesday made an intraday low of US$1.0840/EUR, a high of US$1.0874/EUR, and settled the day up by 0.0085% to close at US$1.0855/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 1.0890-1.1100, targeting 1.0805-1.0775 and 1.0770-1.0640 with stop-loss at daily closing above 1.1100. Buy above 1.0805-1.0450 with risk below 1.0400 targeting 1.0890 and 1.1020-1.1105-1.1145.

GBP/USD

GBP/USD on Tuesday made an intra‐day low of US$1.2670/GBP, a high of US$1.2733/GBP, and settled the day up by 0.359% to close at US$1.2702/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 1.2700-1.2050 with a target of 1.2670-1.2730 and 1.2790-1.2850-1.2890 with a stop loss closing below 1.2050. Sell in between 1.2760-1.2950 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 Tuesday made an intra‐day low of JPY149.72/USD an intraday high of 150.54/USD, and settled the day down by 0.328% at JPY150.03/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 149.90-153.50 with risk above 153.90 targeting 149.90-149.30-148.90 and 146.95-146.50-145.80. Long positions above 149.30-140.90 with targets of 150.50-151.30-151.90 and 152.30-153.90 with stops below 140.00.