Daily Markets

• The dollar was up slightly in skittish trading on Monday as investors awaited U.S. inflation data later this week, while the Australian and New Zealand dollars rallied after China pledged an "appropriately loose" monetary policy next year. While markets have priced in a quarter-point interest-rate cut by the U.S. Federal Reserve next week as a near certainty, investors are waiting for U.S. consumer price data on Wednesday Data on Friday showed U.S. job growth surged in November, but a rise in the unemployment rate to 4.2% pointed to an easing labor market that should allow the Fed to cut interest rates again this month. The dollar index was up 0.179% at 106.14. The euro was down against the dollar at $1.0554, having fallen earlier by as much as 0.3%, while the greenback gained 0.77% against the yen to 151.235. China will adopt an "appropriately loose" monetary policy next year as part of steps to support economic growth, and will implement a more proactive fiscal policy and step up "unconventional" counter-cyclical adjustments, state media reported on Monday, citing a Politburo meeting. The dollar rose 0.44% versus South Korea's won. Over the weekend, South Korean President Yoon Suk Yeol survived an impeachment vote in parliament prompted by his short-lived attempt to impose martial law last week. Mizuho (NYSE:MFG) Bank strategist Vishnu Varathan pointed to a host of geopolitical developments, such as the weekend fall of Syrian President Bashar al-Assad and trades related to macroeconomic factors and President-elect Donald Trump, as providing markets further impetus to stay long dollars. The main events investors are watching this week are the ECB policy meeting on Thursday, where a quarter-point cut is baked in, and China's closed-door Central Economic Work Conference. The Bank of Canada, the Swiss National Bank and the Reserve Bank of Australia meet this week, with deep rate cuts expected from the first two that could turn yield differentials even more against their currencies.

Gold – XAU

Gold on Monday made its intraday high of US$2676.28/oz and low of $2627.51/oz. Gold is up by 0.563% at US$2659.92/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 2670-2716 keeping stop loss closing above 2716, targeting 2650-2635-2600 and 2579-2560-2540-2519. Buy in between 2655-2489 with risk below 2480 targeting 2670-2684-2694 an 2705-2717.

Silver - XAG

Silver on Monday made its intraday high of US$32.26/oz and low of US$30.84/oz settle up by 2.504% at US$31.79/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 30.90-27.50, targeting 31.30-32.10-32.60 and 33.10-33.80-34.20 with stop loss should be placed on the breakage below 27.00. Sell in between 31.30-34.30 with a stop loss above 35.00 targeting 30.25-29.70 and 29.10-28.65-28.00.

Oil - WTI

Crude Oil on Friday an intra‐day high of US$68.21/bbl, an intraday low of US$66.77/bbl, and settled down by 2.017% to close at US$66.96/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 68.00-76.85 with stop loss at 77.00; targeting 69.20-68.50-67.50 and 66.90-66.10-65.05. Buy above 67.60-64.05 with risk daily closing below 64.00, targeting 70.90 and 71.65-73.00-73.90.

EUR/USD

EUR/USD of Monday made an intraday low of US$1.0531/EUR, a high of US$1.0593/EUR, and settled the day up by 0.0369% to close at US$1.0552/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 1.0540-1.0840, targeting 1.0450-1.0400-1.0340 and 1.0290-1.0210 with stop-loss at daily closing above 1.1400. Buy above 1.0470-1.0210 with risk below 1.0210 targeting 1.0490-1.0540-1.0600 and 1.0660-1.0700-1.0790.

GBP/USD

GBP/USD on Monday an intra‐day low of US$1.2716/GBP, a high of US$1.2798/GBP, and settled the day up by 0.187% to close at US$1.2749/GBP.

Technicals in Focus:

On daily charts, prices are sustaining above 50DMA (1.2674) is becoming a support 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 1.2670-1.2380 with a target of 1.2750 and 1.2800.1.2890-1.2990 with a stop loss closing below 1.2380. Sell in between 1.2750-1.3260 with targets at 1.2670-1.2590-1.2520 and 1.2450-1.2380-1.2290 with a stop loss of 1.3200.

USD/JPY

USD/JPY on Monday made an intra‐day low of JPY149.70/USD an intraday high of 151.34/USD, and settled the day up by 0.754% at JPY151.04/USD.

Technicals in Focus:

In daily charts, JPY is sustaining above 100DMA (155.35), 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 151.20-159.50 with risk above 159.00 targeting 149.70-149.20 and 148.50-147.90-147.50. Long positions above 150.50-147.00 with targets of 151.00-151.50 -152.10 and 153.00-153.70-154.10 with stops below 147.00.