Daily Markets

• Most Asian currencies rebounded on Friday as the dollar weakened following President Donald Trump’s call for interest rate cuts, while the Japanese yen regained ground after the Bank of Japan delivered an anticipated rate hike. The BoJ increased interest rates by 25 basis points, while projecting that inflation will stay supported and close to its annual target in the years ahead. The central bank indicated that it plans additional rate hikes if its economic outlook aligns with expectations in the coming months. The BoJ was widely expected to raise rates as markets believed that recent inflation and wage data were encouraging and supported hike bets. Other regional currencies strengthened on Friday, while the dollar fell after Trump's call for the Federal Reserve to implement immediate interest rate cuts. In his address to the World Economic Forum in Davos, Trump urged OPEC and other oil-producing nations to lower prices. According to him, this could lead to a swift resolution of the Russia-Ukraine conflict by cutting off financial support to Russia's military efforts. The US Dollar Index fell 0.3% during Asian trading on Friday, and was set for its worst week in two months. The dollar had fallen 1.2% at the start of the week after Trump's comments suggested a lenient approach toward tariffs.

Gold – XAU

Gold on Thursday its intraday high of US$2758.74/oz and low of $2735.74/oz. Gold is down by 0.054% at US$2754.41/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 2780-2,800 keeping stop loss closing above 2800, targeting 2738-2726-2694 and 2680-2649-2635. Buy in between 27-2649 with risk below 2640 targeting 2749-2758 and 2,770-2,780-2789.

Silver - XAG

Silver on Thursday its intraday high of US$30.85/oz and low of US$30.07/oz settle up by 1.182% at US$30.41/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 30.40-27.50, targeting 30.70-31.30 and 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 30.90-34.30 with a stop loss above 35.00 targeting 29.10-28.60 and 28.10-27.60.

Oil - WTI

Crude Oil on Thursday intra‐day high of US$75.79/bbl, an intraday low of US$73.98/bbl, and settled down by 1.396% to close at US$74.12/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 74.90-83.85 with stop loss at 84.00; targeting 77.80-77.10-76.50 and 75.70-75.05-73.40. Buy above 74.05-64.05 with risk daily closing below 64.00, targeting 70.90 and 71.65-73.00-73.90.

EUR/USD

EUR/USD on Thursday made an intraday low of US$1.0371/EUR, a high of US$1.0437/EUR, and settled the day up by 0.068% to close at US$1.0414/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 1.0490-1.0840, targeting 1.0340 and 1.0290-1.0210 with stop-loss at daily closing above 1.1400. Buy above 1.0390-1.0110 with risk below 1.0110 targeting 1.0400 and 1.0490-1.0540-1.0600.

GBP/USD

GBP/USD on Thursday day low of US$1.2292/GBP, a high of US$1.2374/GBP, and settled the day up by 0.334% to close at US$1.2349/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 1.2350-1.2180 with a target of 1.2340-1.2390-1.2440 and 1.2510-1.2590-1.2650-1.2750 with a stop loss closing below 1.2380. Sell in between 1.2420-1.2960 with targets at 1.2250 and 1.2210-1.2150-1.2070 with a stop loss of 1.3000.

USD/JPY

USD/JPY on Thursday made an intra‐day low of JPY155.73/USD an intraday high of 156.74/USD, and settled the day down by 0.210% at JPY156.02/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 156.00-159.50 with risk above 160.00 targeting 156.00-155.25-154.30 and 153.80-153.00-152.10. Long positions above 155.00-149.00 with targets of 158.50-159.20-160.00 with stops below 147.00.