Daily Markets

• The dollar slipped against most major currencies on Friday as traders booked profits after recent gains but the U.S. currency remained well-placed for further advances, supported by strong U.S. economic data that has prompted markets to dial back expectations for interest rate cuts. Data on Friday showed new orders for key U.S.-manufactured capital goods rebounded more than expected in April and shipments of these goods also increased, suggesting a pickup in business spending on equipment early in the second quarter. This follows Thursday's data that showed U.S. business activity in May accelerated to the highest level in just over two years and manufacturers reported surging input prices. Minutes from the Federal Reserve's last meeting published this week showed a lively debate among policymakers as to whether current rates were sufficiently restrictive to cool inflation. While stronger-than-expected U.S. economic data has led traders to push out the timing of the first Fed rate cut to September, expectations for rate cuts by other central banks have also slipped. Despite Friday's retreat, the near-term outlook for the dollar was upbeat, analysts said. The dollar is up almost 1% this week on the Japanese yen to 156.95 yen, even though Japanese government bond yields have climbed too, scaling decade highs and clearing 1% at the 10-year tenor. Japan's core inflation slowed for a second straight month in April, meeting market expectations - and staying above the central bank's target - at 2.2%. Data showed wet weather hit UK consumer spending far more than expected in April, but evidence of sticky inflation, and the surprise announcement this week of a July general election kept sterling near two-month highs. China started a second day of war games around Taiwan. China's yuan held steady in the offshore market around 7.2627.

Gold – XAU

Gold on Friday made its intraday high of US$2347.29/oz and low of $2325.31/oz. Gold is up by 0.231% at US$2333.72/oz.

Technicals in Focus:

On the daily charts, gold trades higher than 20DMA (2197). If it drops below this level, it could lead to 2,100. The MACD is currently above the zero line and the histograms are showing an increasing trend, indicating that there may be upward movement in the coming sessions. The RSI is currently at 83.04, which is in the overbought region, suggesting there may be selling pressure in the next 2 to 3 sessions. The Stochastic Oscillator is also in the overbought territory but has given a positive crossover, indicating a bullish stance for intraday trades, but rebound in expected in all the overbought indicators.

Trading Strategy: Sell on Strength

Sell below 2350-2400 keeping stop loss closing above 2400, targeting 2320-2309-2300 and 2290-2277. Buy in between 2338-2277 with risk below 2277 targeting 2350-2360 and 2382-2394-2405.

Silver - XAG

Silver on Friday made its intraday high of US$30.60/oz and low of US$30.02/oz settle up by 0.760% at US$30.33/oz.

Technicals in Focus:

On daily charts, silver is sustaining above 20MA (25.05), breakage above will lead to 23.73. MACD is below the zero line and histograms are increasing trend, bringing a bullish stance in the upcoming sessions. RSI is in the oversold region, indicating a sell signal for now. The Stochastic Oscillator is in the overbought region and gives a positive crossover to show an upside move for the intraday trade.

Trading Strategy: Buy on Dips

Buy in between 30.40-28.90, targeting 31.10-31.90-32.40 and 33.00-33.70-34.90 with stop loss should be placed on the breakage below 23.00. Sell in between 31.00-35.00 with a stop loss above 35.50 targeting 30.40-29.80-28.90 and 28.40-27.90-27.10.

Oil - WTI

Crude Oil on Thursday made an intra‐day high of US$78.52/bbl, an intraday low of US$76.31/bbl, and settled down by 0.400% to close at US$76.83/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 78.40-89.65 with stop loss at 90.00; targeting 77.50 and 77.00-76.40. Buy above 77.50-75.00 with risk daily closing below 75.00, targeting 78.10-79.00-79.90 and 80.50-81.10-82.00.

EUR/USD

EUR/USD on Friday made an intraday low of US$1.0804/EUR, a high of US$1.0804/EUR, and settled the day up by 0.841% to close at US$1.0846/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 1.0700-1.0640-with stop-loss at daily closing above 1.1100. Buy above 1.0850-1.0450 with risk below 1.0400 targeting 1.0845-1.0890 and 1.1020-1.1105-1.1145.

GBP/USD

GBP/USD on Friday made an intra‐day low of US$1.2669/GBP, a high of US$1.2750/GBP, and settled the day up by 0.317% to close at US$1.2737/GBP.

Technicals in Focus:

On daily charts, prices are sustaining below 50DMA (1.2674) 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 1.2760-1.2830-1.2890 and 1.2950-1.2990 with a stop loss closing below 1.2050. Sell in between 1.2760-1.2900 with targets at 1.2700-1.2670-1.2610-and 1.2500-1.2450-1.2360 with a stop loss of 1.2950.

USD/JPY

USD/JPY on Friday made an intra‐day low of JPY156.81/USD an intraday high of 157.14/USD, and settled the day up by 0.0809% at JPY157.00/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 157.50-159.00 with risk above 159.00 targeting 153.10-152.60-151.00 and 150.60-149.90-149.30. Long positions above 156.90-149.50 with targets of 156.50-156.90-157.50 and 158.00-158.60 with stops below 149.50.