Daily Markets

• The U.S. dollar was down on Tuesday after earlier hitting its highest in almost five months, following a new report that showed U.S. job openings held steady at higher levels in February. The dollar index rose to 105.1 on Tuesday, its highest level since Nov. 14, adding to sharp gains on Monday after U.S. data unexpectedly showed the first expansion in manufacturing since September 2022, causing traders to pare rate bets. The dollar index last stood at 104.81, down 0.181% after a report from the Labor Department showed that job openings edged up to 8.756 million on the last day of February, slightly higher than expectations, as traders also digested a February increase in factor orders. The Commerce Department's Census Bureau on Tuesday said new orders for U.S.-manufactured goods rebounded more than expected in February, boosted by demand for machinery and commercial aircraft as manufacturing regains its footing Monday's U.S. ISM manufacturing survey data featured a sharp rise in a measure of prices in the sector, adding to investors' concerns that inflation will be slow to fall back to 2%, delaying the Federal Reserve's first rate cut Fed Chair Jerome Powell on Friday said the central bank was in no hurry to lower borrowing costs after data showed a key measure of inflation rose slightly in February. On Tuesday, Japanese Finance Minister Shunichi Suzuki reiterated that he would not rule out any options to respond to disorderly currency moves. Japanese authorities intervened in 2022 when the yen slid toward a 32-year low of 152 to the dollar. The yen's decline has come despite the Bank of Japan's first interest rate hike since 2007 last month, with officials cautious about further tightening amid a fragile exit from decades of deflation. Still, officials are "wary of backing themselves into a corner by drawing a line in the sand at 152," said Nicholas Chia, Asia macro strategist at Standard Chartered (OTC:SCBFF). Elsewhere, China's yuan fell to a 4-1/2-month low as a strong dollar offset selling of the U.S. currency by state-owned banks. The yuan fell to a low of 7.2364 per dollar on the day, its weakest level since mid-November. The euro fell to its lowest since mid-February at the end of the Asian session but was last up at $1.0763. Data on Tuesday showed that the euro zone factory downturn deepened again in March. Sterling ticked up from near its lowest since December to $1.2569 after data showed its manufacturing sector brightened last month.

Gold – XAU

Gold on Tuesday made its intraday high of US$2280.79/oz and low of $2246.61/oz. Gold is up by % at US$2280.21/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 2294-2340 keeping stop loss closing above 2340, targeting 2280-2270-2261 and 2250-2239-2220-2200. Buy in between 2284-2210 with risk below 2210 targeting 2294-2310 and 2325-2340.

Silver - XAG

Silver on Tuesday made its intraday high of US$25.71/oz and low of US$25.05/oz settle up by 1.99% at US$25.57/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 25.90-19.30, targeting 25.00-25.45-25.90 and 26.50-26.90-27.50 with stop loss should be placed on the breakage below 19.00. Sell in between 26.50-28.50 with a stop loss above 28.50 targeting 25.90-25.45-24.90 and 24.60-23.90-23.20.

Oil - WTI

Crude Oil on Tuesday made an intra‐day high of US$85.00/bbl, an intraday low of US$83.29/bbl, and settled up by 1.710% to close at US84.96/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 84.70-88.30 with stop loss at 88.30; targeting 84.00-83.35-81.10 and 79.90-79.00-78.00. Buy above 84.00-75.00 with risk daily closing below 75.00, targeting 82.90-83.35-84.00 and 84.80-86.00.

EUR/USD

EUR/USD on Tuesday made an intraday low of US$1.0724/EUR, a high of US$1.0778/EUR, and settled the day up by 0.243% to close at US$1.0768/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 1.0805-1.1100, targeting 1.0775 and 1.0770-1.0640 with stop-loss at daily closing above 1.1100- Buy above 1.0765-1.0450 with risk below 1.0400 targeting 1.0805-1.0890 and 1.1020-1.1105-1.1145.

GBP/USD

GBP/USD on Tuesday made an intra‐day low of US$1.2538/GBP, a high of US$1.2577/GBP, and settled the day up by 0.208% to close at US$1.2576/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 1.2540-1.2050 with a target of 1.2600-1.2690-1.2730 and 1.2790-1.2850-1.2890 with a stop loss closing below 1.2050. Sell in between 1.2630-1.3120 with targets at 1.2540-1.2490-1.2400 and 1.2360-1.2300 with a stop loss of 1.2950.

USD/JPY

USD/JPY on Tuesday made an intra‐day low of JPY151.45/USD an intraday high of 151.79/USD, and settled the day down by 0.059% at JPY151.53/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 151.90-154.00 with risk above 154.00 targeting 151.00-150.60-149.90-149.30 and 148.10-147.40-146.95. Long positions above 151.00-141.90 with targets of 151.30-51.90 and 152.50-153.10-154.00 with stops below 141.90.