Daily Markets

• Most Asian currencies weakened on Tuesday, while the dollar crept higher after U.S. President Donald Trump imposed tariffs on metal imports, keeping traders largely on edge over a brewing trade war. Trade-sensitive currencies such as the South Korean won, Singapore dollar and the Australian dollar were the bigger decliners in Asia, given that the tariffs stand to impact them the most. The Japanese yen stemmed its declines from Monday, benefiting from some safe haven demand, while the Chinese yuan moved little. The dollar index and dollar index futures both rose 0.1% in Asian trade, extending gains from the prior session. Trump on Monday evening signed executive orders imposing 25% tariffs on all imports of steel and aluminum. He also flagged the potential for higher metal tariffs, and said he was preparing reciprocal tariffs on major U.S. trading partners. The dollar firmed on Trump’s move, given that higher duties stand to benefit the greenback. Traders also bet that higher tariffs- which will be borne by U.S. importers- will underpin inflation in the long term. On that end, key U.S. consumer price index inflation data for January is due on Wednesday, and is likely to factor into the outlook for interest rates. Trade sensitive units such as South Korea’s won, the Australian dollar and the Singapore dollar were the biggest decliners in Asia. The Japanese yen was among the better performers for the day, with the USDJPY pair falling slightly and remaining in sight of a recent two-month low. The yen was boosted in recent sessions by growing bets on more interest rate hikes by the Bank of Japan The Chinese yuan’s USDCNY pair was flat, amid some support from Beijing as the currency faced increased selling pressure after U.S. tariffs against the country took hold last week. Weak inflation data released over the weekend also pressured the yuan.

Gold – XAU

Gold on Friday its intraday high of US$2911.60/oz and low of $2854.77/oz. Gold is down by 1.75% at US$2907.87/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 2,920-2,970 keeping stop loss closing above 2970, targeting 2900-2884-2870 and 2862-2849-2830. Buy in between 2900-2789 with risk below 2789 targeting 2920-2930-2943 and 2950-2960-2970.

Silver - XAG

Silver on Friday its intraday high of US$32.31/oz and low of US$31.59/oz settle up by 0.924% at US$32.01/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 31.30-27.50, targeting 32.50 and 33.10-33.80-34.20 with stop loss should be placed on the breakage below 27.00. Sell in between 32.10-34.30 with a stop loss above 35.00 targeting 31.30-30.90 and 29.90-29.10-28.60.

Oil - WTI

Crude Oil on Friday intra‐day high of US$72.23/bbl, an intraday low of US$70.63/bbl, and settled up by 2.089% to close at US$72.17/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 72.50-83.85 with stop loss at 84.00; targeting 72.20-71.70-71.00 and 70.39-69.50. Buy above 71.40-64.05 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 Friday made an intraday low of US$1.0276/EUR, a high of US$1.0335/EUR, and settled the day up by 0.170% to close at US$1.0306/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 1.0390-1.0840, targeting 1.0340 and 1.0290-1.0210 with stop-loss at daily closing above 1.1400. Buy above 1.0300-1.0110 with risk below 1.0110 targeting 1.0400 and 1.0490-1.0540-1.0600.

GBP/USD

GBP/USD on Friday low of US$1.2361/GBP, a high of US$1.2421/GBP, and settled the day down by 0.0113% to close at US$1.2366/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 1.2310-1.2040 with a target of 1.2510-1.2590-1.2650-1.2750 with a stop loss closing below 1.2040. Sell in between 1.2380-1.2960 with targets at 1.2310 and 1.2210-1.2150-1.2070 with a stop loss of 1.3000.

USD/JPY

USD/JPY on Friday an intra‐day low of JPY151.13/USD an intraday high of 152.53/USD, and settled the day up by 0.549% at JPY151.98/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 152.00-159.50 with risk above 160.00 targeting 156.00-155.25-154.30 and 153.80-153.00-152.10. Long positions above 151.50-149.00 with targets of 153.00-154.30-155.25 and 156.00-156.50-157.20 with stops below 149.00.