Daily Markets

• The dollar edged higher on Tuesday in thin holiday trading as the expected slower path of interest rate cuts from the U.S. Federal Reserve compared with other global central banks continued to command market direction. The greenback has jumped more than 7% since the end of September, powered in part by growing expectations the U.S. economy will see accelerated growth under policies from President-elect Donald Trump, while sticky inflation has dampened expectations on how aggressive the Fed will be in reducing interest rates. Those expectations for the U.S. stand in contrast to growth forecasts and the interest rate views for other global economies and central banks, which have led to expanding interest rate differentials. The Fed last week projected a more measured path of rate cuts than the market had been anticipating, providing another boost to U.S. Treasury yields, with the benchmark 10-year note yield reaching a 7-month high of 4.629% on Tuesday. The dollar index, which measures the greenback against a basket of currencies, rose 0.14% to 108.24, with the euro down 0.15% at $1.0389. The index is on track for its fifth gain in the past six sessions. Trading volumes are likely to be thin through next week as the year draws to a close, with the economic calendar very light, and analysts expect rates to be the main driver for the foreign exchange market until the U.S. employment report on Jan. 10. Against the yen, the dollar strengthened 0.1% to 157.34 as the Japanese currency remains near levels that have recently prompted Japanese authorities to intervene in an effort to support it. Minutes from the Bank of Japan's meeting last week showed policymakers agreed in October to keep raising interest rates if the economy moves in line with their forecast, but some stressed the need for caution on uncertainty over U.S. economic policy.

Gold – XAU

Gold on Tuesday its intraday high of US$2631.08/oz and low of $2609.81/oz. Gold is up by 0.138% at US$2616.69/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 2634-2716 keeping stop loss closing above 2716, targeting 2600-2585 and 2574-2560-2540-2519. Buy in between 2600-2550 with risk below 2550 targeting 2624-2650-2669 and 2684-2694-2705.

Silver - XAG

Silver on Tuesday made its intraday high of US$29.76/oz and low of US$29.46/oz settle up by 0.108% at US$29.63/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 29.50.40-27.50, 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 29.90-34.30 with a stop loss above 35.00 targeting 29.10-28.60 and 28.10-27.60.

Oil - WTI

Crude Oil on Tuesday an intra‐day high of US$70.25/bbl, an intraday low of US$69.35/bbl, and settled up by 0.464% to close at US$69.77/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 70.90-76.85 with stop loss at 77.00; targeting 69.20-68.50-67.50 and 66.90-66.10-65.05. Buy above 69.60-64.05 with risk daily closing below 64.00, targeting 70.90 and 71.65-73.00-73.90.

EUR/USD

EUR/USD on Tuesday made an intraday low of US$1.0382/EUR, a high of US$1.0409/EUR, and settled the day down by 0.689% to close at US$1.0391/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 1.0500-1.0840, targeting 1.0450-1.0400-1.0340 and 1.0290-1.0210 with stop-loss at daily closing above 1.1400. Buy above 1.0420-1.0210 with risk below 1.0210 targeting 1.0490-1.0540-1.0600 and 1.0660-1.0700-1.0790.

GBP/USD

GBP/USD on Tuesday an intra‐day low of US$1.2518/GBP, a high of US$1.2574/GBP, and settled the day up by 0.028% to close at US$1.2529/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 1.2650 -1.2380 with a target of 1.2750-1.2800.1.2890 and 1.2930-1.2990-1.3050 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 Tuesday made an intra‐day low of JPY155.94/USD an intraday high of 157.38/USD, and settled the day down by 0.617% at JPY157.32/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 157.00-159.50 with risk above 159.00 targeting 156.00-155.25-154.30 and 153.80-153.00-152.10. Long positions above 156.30-149.00 with targets of 157.00-157.90 and 158.50-159.20-160.00 with stops below 147.00.