Daily Markets

• The U.S. dollar was firmer against major currencies on Wednesday after the Federal Reserve left interest rates unchanged as widely expected but gave scant clues about further reductions in borrowing costs this year. Fed officials made a unanimous decision to keep the overnight interest rate in the current 4.25%-4.50% range, putting the central bank in a holding pattern as they await further inflation and jobs data and clarity on the impact of President Donald Trump's policies. During his press conference, Fed Chair Jerome Powell it is too soon to say what Trump's policies will do and the central bank's 2% inflation target will remain in place. The dollar index, which measures the greenback against a basket of currencies including the yen and the euro, rose 0.09% to 108.02. The index touched a one-month low on Monday at 106.96 amid a global selloff in technology stocks and rush to safe-haven currencies such as the Japanese yen and Swiss franc, but the index is still up more than 4% since the U.S. election won by Trump in November Howard Lutnick, a billionaire Wall Street CEO and Trump's nominee to head the Commerce Department, said at his U.S. Senate confirmation hearing on Wednesday that he has advised the president to pursue across-the-board tariffs country-by-country to restore "reciprocity" to America's trading relationships. The Bank of Canada cut its key policy rate by 25 bps to 3% on Wednesday, and told Canadians that a tariff war triggered by the United States could cause major economic damage. Bank lending to firms in the euro area picked up last month, indicating that rapid interest rate cuts have started to flow through to the real economy, European Central Bank data showed. The ECB is widely expected to cut rates on Thursday.

Gold – XAU

Gold on Wednesday its intraday high of US$2766.07/oz and low of $2744.65/oz. Gold is down by 0.115% at US$2759.56/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 2762-2,800 keeping stop loss closing above 2800, targeting 2738-2726-2694 and 2680-2649-2635. Buy in between 2749-2649 with risk below 2640 targeting 2,770-2,780-2789.

Silver - XAG

Silver on Wednesday its intraday high of US$30.96/oz and low of US$30.26/oz settle up by 1.38% at US$30.80/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 30.10-27.50, 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 Wednesday intra‐day high of US$73.65/bbl, an intraday low of US$72.05/bbl, and settled down by 1.38% to close at US$72.69/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 73.90-83.85 with stop loss at 84.00; targeting 77.80-77.10-76.50 and 75.70-75.05-73.40. Buy above 73.00-64.05 with risk daily closing below 64.00, targeting 74.05-75.70-76.50 and 77.10-77.80-78.85..

EUR/USD

EUR/USD on Wednesday made an intraday low of US$1.0381/EUR, a high of US$1.0442/EUR, and settled the day down by 0.588% to close at US$1.0420/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 Wednesday day low of US$1.2392/GBP, a high of US$1.2462/GBP, and settled the day up by 0.029% to close at US$1.2443/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 1.2400-1.2180 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 1.2470-1.2960 with targets at 1.2380-1.2310-1.2250 and 1.2210-1.2150-1.2070 with a stop loss of 1.3000.

USD/JPY

USD/JPY on Wednesday made an intra‐day low of JPY154.93/USD an intraday high of 155.78/USD, and settled the day up by 0.756% at JPY155.11/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.