Daily Markets

• Most Asian currencies traded slightly higher on Thursday as the dollar remained weak amid worries over piling U.S. debt, while investors awaited a crucial full floor vote over President Donald Trump’s tax cut bill later in the day. Markets were cautious because the proposed bill, if passed, would further increase U.S. government spending and widen the fiscal deficit. Concurrently, the U.S. House of Representatives was poised to vote on President Donald Trump’s proposed tax cut bill on Thursday. The legislation aims to extend the 2017 tax cuts and introduce new tax breaks. However, critics argue that the bill could add between $3 trillion to $5 trillion to the national debt over the next decade, exacerbating fiscal deficits. Investors are also closely monitoring the G7 finance ministers’ meeting in Canada, where discussions are expected to address global economic stability and currency market volatility. “US Treasury Secretary Scott Bessent is set to hold several bilateral meetings in the coming days, and markets will be watching closely for any signals that currency agreements are on the table,” ING analysts said in a note U.S. Treasury Secretary Scott Bessent and Japan’s Finance Minister Katsunobu Kato agreed Wednesday that the dollar-yen exchange rate reflects current fundamentals, the U.S. Treasury said on Wednesday. The won gained sharply in the previous session after media reports showed that the U.S. had demanded that Seoul come up with measures to boost the won.

Gold – XAU

Gold on Wednesday its intraday high of US$3345.27/oz and low of $3334.88/oz. Gold is down by 0.172% at US$3335.30/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 3340-3420 keeping stop loss closing above 3420, targeting 3320-3300-3287 and 3274-3244-3227. Buy in between 3320-3201 with risk below 3200 targeting 3345-3358-3370 and 3386-3404-3420-3437.

Silver - XAG

Silver on Wednesday its intraday high of US$33.55/oz and low of US$32.90/oz settle down by up by 0.983% at US$33.36/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 33.50-27.10, targeting 33.90-34.30 and 34.60-35.00 with stop loss should be placed on the breakage below 27.00. Sell in between 34.00-35.60 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 Wednesday high of US$64.01/bbl, an intraday low of US$61.16/bbl, and settled down by 1.412% to close at US$61.19/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 61.50-64.00 with stop loss at 64.00; targeting 60.25-59.80-59.25 and 55.50-54.75-54.00. Buy above 61.00-52.00 with risk daily closing below 52.00, targeting 61.50-62.20-63.15 and 63.52-64.00.

EUR/USD

EUR/USD on Wednesday an intraday low of US$1.1279/EUR, a high of US$1.1362/EUR, and settled the day up by 0.374% to close at US$1.1323/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 1.1320-1.1740, targeting 1.1340-1.1300-1.1250-1.1200 with stop-loss at daily closing above 1.1035. Buy above 1.1300-1.1010 with risk below 1.1010 targeting 1.1340-1.1370-1.420 and 1.1450-1.1470.

GBP/USD

GBP/USD on Wednesday low of US$1.3377/GBP, a high of US$1.3468/GBP, and settled the day up 0.199% to close at US$1.3418/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 1.3400-1.3040 with a target of 1.3435-1.3470-1.3510 and 1.3550-1.3570 with a stop loss closing below 1.3040. Sell in between 1.3435-1.3600 with targets at 1.3400-1.3360-1.3300 and 1.3206-1.3150-1.3110 with a stop loss of 1.3140.

USD/JPY

USD/JPY on Wednesday an intra‐day low of JPY143.27/USD an intraday high of 144.53/USD, and settled the day down by 0.584% at JPY143.63/USD.

Technicals in Focus:

In daily charts, JPY is sustaining above 100DMA (152.35), 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 143.90-148.00 with risk above 149.00 targeting 145.20-144.50-143.90 and 143.00-142.50-141.90. Long positions above 143.00-138.00 with targets of 143.90-146.10-146.60-147.40 and 148.10-148.90-149.35 with stops below 138.00.