Daily Markets

• The dollar lost ground to the safe-haven yen and Swiss franc on Wednesday as the imminent imposition by the U.S. of 104% tariffs on China spooked world equity markets and sent the Chinese yuan to record lows. President Donald Trump showed no sign of backing away from the new increase of 50% on China, which goes into effect in just a few hours, accusing Beijing of manipulating the yuan to offset the levies. The dollar has already reached an all-time top on the yuan offshore at 7.4288, breaching the previous high at 7.3765, and all eyes are on China’s central bank to see whether it allows a further easing at its daily fix. Worries about a U.S. downturn were pressuring the dollar elsewhere as markets returned to pricing in more rate cuts from the Federal Reserve. Fed fund futures jumped in early Asian trade to imply around 111 basis points of cuts this year, compared to 92 basis points early on Tuesday. Fresh losses in U.S. stock futures and heavy selling in longer-dated U.S. Treasuries sparked demand for safe haven currencies, notably the yen and Swiss franc. The euro also edged higher, helped by reports Germany’s conservatives had reached a deal with the centre-left Social Democrats to form a government, easing political concerns in the EU’s largest economy.

Gold – XAU

Gold on Tuesday its intraday high of US$3022.44/oz and low of $2974.51/oz. Gold is up by 0.019% at US$2981.77/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 3010-3096 keeping stop loss closing above 3096, targeting 3020-3010-2990 and 2979-2970-2955-2940. Buy in between 2990-2940 with risk below 2940 targeting 3010-3020-3035 and 3050-3059-3069.

Silver - XAG

Silver on Tuesday its intraday high of US$30.51/oz and low of US$29.61/oz settle down by 0.835% at US$29.79/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 29.50-27.10, targeting 30.50-30.90-31.40 ad 32.10-32.60-33.10-33.90 with stop loss should be placed on the breakage below 27.00. Sell in between 30.50-34.00 with a stop loss above 34.00 targeting 29.90-29.20-28.60 and

Oil - WTI

Crude Oil on Tuesday high of US$61.46/bbl, an intraday low of US$57.62/bbl, and settled down by 4.68% to close at US$57.85/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 57.00-64.00 with stop loss at 64.00; targeting 56.50-56.00-55.40 and 54.90-54.50-53.75. Buy above 56.10-53.00 with risk daily closing below 53.00, targeting 57.00-58.00-58.50 and 59.20-59.80-61.00.

EUR/USD

EUR/USD on Tuesday an intraday low of US$1.0887/EUR, a high of US$1.0991/EUR, and settled the day up by 0.206% to close at US$1.0952/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 1.1065-1.1035, targeting 1.0935-1.0890-1.0830 and 1.0760-1.0725-1.0650 with stop-loss at daily closing above 1.1035. Buy above 1.1035-1.0650 with risk below 1.0650 targeting 1.1065-1.1107 and 1.1145-1.1200-1.1250.

GBP/USD

GBP/USD on Tuesday a low of US$1.2714/GBP, a high of US$1.2814/GBP, and settled the day down 0.418% to close at US$1.2764/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 1.2790-1.2380 with a target of 1.2790-1.2850-1.2920 and 1.2960-1.2990 1.3040-1.0390 with a stop loss closing below 1.2380. Sell in between 1.2850-1.3140 with targets at 1.2753-1.2690 and 1.2660-1.2590-1.2510 with a stop loss of 1.3140.

USD/JPY

USD/JPY on Wednesday an intra‐day low of JPY145.95/USD an intraday high of 148.11/USD, and settled the day down by 1.017% at JPY146.19/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 146.00-150.50 with risk above 151.00 targeting 145.20-144.50-143.90 and 143.20-142.50. Long positions above 145.10-143.50 with targets of 143.50 and 146.00-146.50-147.10 and 148.00-148.60-149.00 with stops below 143.00.