Daily Markets

• Most Asian currencies firmed slightly on Tuesday, advancing against a battered dollar as traders remained uncertain over the U.S. plans for more trade tariffs, as well as a potential deal with China. A market holiday in Japan made for softer trading volumes in the region. Most regional currencies were nursing steep losses in recent weeks, as a bitter tariff exchange between the U.S. and China and heightened uncertainty over the global economic outlook battered risk appetite. But some of these losses were softened by a sharp drop in the dollar, as traders also appeared to be slashing positions in U.S. assets. This trend was also apparent with a sharp fall in U.S. Treasuries, although they regained some ground this week. The Chinese yuan and the Taiwan dollar were among the better performers on Tuesday, while the Japanese yen weakened slightly as risk appetite improved. A Wall Street Journal report said U.S. President Donald Trump was considering some alterations to his steep automotive tariffs, in order to lessen their impact. Elsewhere, the Canadian dollar weakened, with the CAD/USD pair down 0.3% after the Liberal Party under Mark Carney was seen heading for a close victory in federal elections defined by Trump’s tariff and sovereignty threats. The dollar index and dollar index futures both moved little in Asian trade after coming back in sight of a three-year low this week. The greenback was battered by what appeared to be a mass pivot away from U.S. assets, amid uncertainty over Trump’s trade and economic agenda. The WSJ reported on Monday evening that Trump was considering scaling back some of his automotive tariffs, amid heightened concerns over their economic impact. The move offered some relief to markets, and sparked bets that Trump will seek further deescalation in his tariff agenda. U.S.-China trade talks are a major point of focus, although both sides have offered wildly different signals on negotiations. Trump claimed that his administration was in talks with China, while Beijing denied any such claims.

Gold – XAU

Gold on Monday its intraday high of US$352.93/oz and low of $3267.86/oz. Gold is up by 0.570% at US$3343.83/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 3310-3461 keeping stop loss closing above 3461, targeting 3287 and 3280-3260-3245. Buy in between 3290-3208 with risk below 3200 targeting 3310-3320-3345 and 3358-3370-3390.

Silver - XAG

Silver on Monday its intraday high of US$33.17/oz and low of US$32.63/oz settle up by 0.214% at US$33.12/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 33.50-33.90-34.30 and 34.60-35.00 with stop loss should be placed on the breakage below 27.00. Sell in between 33.10-34.00 with a stop loss above 34.00 targeting 32.50-31.90-30.90 and 30.50-29.90-29.20.

Oil - WTI

Crude Oil on Monday high of US$63.52/bbl, an intraday low of US$61.22/bbl, and settled down by 2.224% to close at US$61.90/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 61.60-68.00 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 61.00-58.00 with risk daily closing below 58.00, targeting 62.75-63.50-64.30-65.20 and 66.00-66.90-67.50.

EUR/USD

EUR/USD on Monday an intraday low of US$1.1328/EUR, a high of US$1.1424/EUR, and settled the day up by 0.502% to close at US$1.1414/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 1.1384-1.1740, targeting 1.1340-1.1300-1.1250-1.1200 with stop-loss at daily closing above 1.1035. Buy above 1.1370-1.1010 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 Monday low of US$1.3279/GBP, a high of US$1.3442/GBP, and settled the day down 1.0641% to close at US$1.3438/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 1.3360-1.3040 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 1.3390-1.3600 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 Monday an intra‐day low of JPY141.92/USD an intraday high of 143.88/USD, and settled the day down by 1.076% at JPY141.94/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 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 143.90-146.00 with risk above 146.00 targeting 143.40-142.50-141.90 and 140.60-140.00-139.60. Long positions above 143.20-138.00 with targets of 143.90-144.50-145.00 and 146.00-146.60-147.40 with stops below 138.00.