Daily Markets

• Most Asian currencies edged higher on Wednesday after President Donald Trump walked back threats to remove Federal Reserve Chair Jerome Powell and hinted at easing steep trade tariffs on China, while the Japanese yen fell after weak factory activity data. President Donald Trump on Tuesday said he has "no intention" of firing Federal Reserve Chair Jerome Powell, after recent sharp criticisms that unsettled financial markets. Trump’s earlier remarks and frustration over the Fed’s reluctance to cut interest rates had raised concerns about potential political interference in the central bank’s independence. Trump also expressed optimism over potential trade negotiations with China. He said a potential deal could lead to a “substantial” reduction in tariffs. But "it won’t be zero," he added These developments eased some tariff tensions among investors, although they remained on edge over Trump’s fluctuating policy. Yen lower, Japan manufacturing PMI contracts for 10th straight month in April. Data on Wednesday showed that Japanese manufacturing activity shrank for the tenth consecutive month in April as new orders declined significantly amid U.S. tariff concerns. The au Jibun Bank manufacturing PMI came in at 48.5 in April, below the forecast of 48.7. Meanwhile, Japanese services activity rebounded, with the au Jibun Bank services PMI rising to 52.2 in April, from a neutral reading of 50.0 in March. The overall composite PMI expanded to 51.1 in April from 48.9 in March.

Gold – XAU

Gold on Tuesday its intraday high of US$3499.97/oz and low of $3366.71/oz. Gold is down by 1.257% at US$3380.88/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 3345-3461 keeping stop loss closing above 3461, targeting 3320-3300-3287 and 3280-3260-3245. Buy in between 3320-3280 with risk below 3280 targeting 3345-3358-3370 and 3390-3400-3421.

Silver - XAG

Silver on Tuesday its intraday high of US$33.12/oz and low of US$32.26/oz settle up by 0.480% at US$32.48/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 32.50-27.10, targeting 30 j.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 32.90-34.00 with a stop loss above 34.00 targeting 30.90-30.50-29.90 and 29.20-28.60-27.80.

Oil - WTI

Crude Oil on Tuesday high of US$64.21/bbl, an intraday low of US$62.59/bbl, and settled up by 1.20% to close at US$63.38/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 64.30-68.00 with stop loss at 68.00; targeting 63.60-62.90-62.10-61.50-61.00 and 60.25-59.80-59.20. Buy above 63.50-58.00 with risk daily closing below 58.00, targeting 64.30-65.20 and 66.00-66.90-67.50.

EUR/USD

EUR/USD on Tuesday an intraday low of US$1.1416/EUR, a high of US$1.1546/EUR, and settled the day down by 0.839% to close at US$1.14200/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 1.1420-1.1740, targeting 1.1385 and 1.1340-1.1300-1.1250-1.1200 with stop-loss at daily closing above 1.1035. Buy above 1.1390-1.1010 with risk below 1.1010 targeting 1.1450-1.1520-1.1550-1.1590 and 1.1630-1.1690-1.1740.

GBP/USD

GBP/USD on Tuesday low of US$1.3324/GBP, a high of US$1.3422/GBP, and settled the day down 0.365% to close at US$1.3327/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 1.3300-1.3040 with a target of 1.3400-1.3435-1.3470 and 1.3510-1.3550-1.3600 with a stop loss closing below 1.3040. Sell in between 1.3360-1.3600 with targets at 1.3300-1.3266 and 1.3206-1.3150-1.3110 with a stop loss of 1.3140.

USD/JPY

USD/JPY on Tuesday an intra‐day low of JPY139.88/USD an intraday high of 141.65/USD, and settled the day up by 0.519% at JPY141.43/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 141.90-146.00 with risk above 146.00 targeting 140.60-140.00-139.60 and 139.00-138.50-138.00. Long positions above 141.60-138.00 with targets of 141.90-142.50 and 143.40-144.50-145.00 with stops below 138.00.