Daily Markets

• Most Asian currencies were slightly weaker on Wednesday despite a muted U.S. dollar as investors digested new tariff threats from U.S. President Donald Trump, while the Reserve Bank of New Zealand (RBNZ) reduced interest rates as expected The US Dollar Index was largely unchanged in Asia hours, while Dollar Index Futures were slightly lower. While lower interest rates are intended to encourage spending, elevated global economic uncertainties, particularly related to trade policies under U.S. President Trump's administration, may weigh on business investment decisions, the central bank said in a statement. Trump announced plans on Tuesday to impose tariffs of around 25% on automobiles, semiconductors, and pharmaceutical imports, saying he will impose some of them by April. This further added to heightened global trade tensions, pushing investors away from riskier assets. The Japanese yen’s USD/JPY pair was largely unchanged on Wednesday after data showed that the country’s trade deficit widened in January. Exports grew less than expected, while imports surge outpaced expectations. The U.S. dollar rebounded on Tuesday but saw tepid moves as markets cautiously awaited the Federal Open Market Committee (FOMC) meeting minutes, due later in the day, for clues on the U.S. interest rate outlook. Recent U.S. economic data and comments from Federal Reserve officials have fueled speculation that the central bank may delay interest rate cuts, which could strengthen the dollar and weigh on Asian currencies.

Gold – XAU

Gold on Tuesday its intraday high of US$2936.80/oz and low of $2891.87/oz. Gold is up by 1.259% at US$2934.96/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 2,930-2,970 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 Tuesday its intraday high of US$32.89/oz and low of US$32.05/oz settle up by 1.46% at US$32.85/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 32.50-27.50, 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 33.10-34.30 with a stop loss above 35.00 targeting 32.10-31.30-30.90 and 29.90-29.10-28.60.

Oil - WTI

Crude Oil on Tuesday intra‐day high of US$71.99/bbl, an intraday low of US$70.86/bbl, and settled up by 0.584% to close at US$71.73/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 72.10-83.85 with stop loss at 84.00; targeting 72.20-71.70-71.00 and 70.39-69.50. Buy above 71.60-64.05 with risk daily closing below 64.00, targeting 72.20-72.90-74.05-75.70 and 76.50-77.10-77.80.

EUR/USD

EUR/USD on Tuesday made an intraday low of US$1.0434/EUR, a high of US$1.0485/EUR, and settled the day down by 0.263% to close at US$1.0444/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 1.0410-1.0110 with risk below 1.0110 targeting 1.0460 and 1.0490-1.0540-1.0600.

GBP/USD

GBP/USD on Tuesday low of US$1.2581/GBP, a high of US$1.2624/GBP, and settled the day down by 0.0493% to close at US$1.2610/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 1.2590-1.2100 with a target of 1.2650-1.2750 and 1.2790-1.2850-1.2900 with a stop loss closing below 1.2040. Sell in between 1.2650-1.2960 with targets at 1.2310 and 1.2210-1.2150-1.2070 with a stop loss of 1.3000.

USD/JPY

USD/JPY on Tuesday an intra‐day low of JPY151.22/USD an intraday high of 152.21/USD, and settled the day up by 0.473% at JPY152.04/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 151.50-150.90 and 150.20-149.00 Long positions above 151.50-149.00 with targets of 152.10-154.30-155.25 and 156.00-156.50-157.20 with stops below 149.00.