Daily Markets

• The U.S. dollar slipped lower Wednesday on declining trade optimism, amid caution ahead of key employment data which could provide clues of future Federal Reserve monetary policy decisions. At 04:55 ET (08:55 GMT), the Dollar Index, which tracks the greenback against a basket of six other currencies, dropped 0.2% to 99.002, remaining near its lowest level since late April, seen at the start of the week. The Trump administration has given a Wednesday deadline for countries to submit their best offers on trade, but the president has also signed a doubling of duties to 50% on imported steel and aluminium. There was also some optimism in Asia earlier Wednesday that Trump would call Chinese President Xi Jinping this week to provide some energy into trade talks after the two sides accused each other of violating the terms of an agreement last month to roll back some tariffs. However, this was thrown into uncertainty Wednesday after he criticised the Chinese president in a social media post. Markets will have the chance to parse through private payrolls data later in the session that could shed further light on the impact of Trump’s tariff agenda on the American labor market, ahead of Friday’s all-important monthly nonfarm payrolls report. Separate data on Tuesday from the U.S. Labor Department found that job openings grew in April, although layoffs increased, potentially indicating some softening in the labor market. In Europe, EUR/USD traded 0.3% higher to 1.1399, not far removed from a six-week high, despite data showing eurozone business activity barely expanded in May. The HCOB Eurozone Composite Purchasing Managers’ Index, compiled by S&P Global, fell to 50.2 in May from 50.4 in April, higher than a preliminary estimate of 49.5 but itsweakest since February. PMI readings above 50.0 indicate growth in activity, while those below point to a contraction. The European Central Bank concludes its latest policy-setting meeting on Thursday, and is widely-expected to cut interest rates by a quarter point once more. GBP/USD traded 0.2% higher to 1.3540, after Britain’s services sector returned to tepid growth last month after the sector shrank in April for the first time in a year and a half. The S&P Global Purchasing Managers’ Index for Britain’s services sector rose to 50.9 in May from 49.0 in April, and above an earlier flash estimate of 50.2. The upward revision also lifted the composite PMI, which includes the smaller manufacturing sector, taking it above the 50-level which divides growth from contraction. Elsewhere, USD/JPY traded 0.1% lower to 143.90, while USD/CNY traded largely unchanged at 7.1877, as traders await news of trade talks between Trump and Chinese President Xi Jinping, potentially this week.

Gold – XAU

Gold on Wednesday its intraday high of US$3384.60/oz and low of $3343.74/oz. Gold is up by 0.873% at US$3371.92/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 3370-3420 keeping stop loss closing above 3420, targeting 3300-3287 and 3274-3244-3227. Buy in between 3358-3201 with risk below 3200 targeting 3370-3386-3404 and 3420-3430-3438.

Silver - XAG

Silver on Monday its intraday high of US$34.62/oz and low of US$34.16/oz settle down by down by 0.0173% at US$34.47/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 33.95-29.10, targeting 34.30 and 34.60-35.00-35.30 with stop loss should be placed on the breakage below 29.00. Sell in between 33.50-35.60 with a stop loss above 36.00 targeting 33.95-33.50 and 32.50-31.90-30.90.

Oil - WTI

Crude Oil on Wednesday high of US$63.28/bbl, an intraday low of US$61.57/bbl, and settled up by 1.085% to close at US$62.10/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 62.52-64.00 with stop loss at 64.00; targeting 60.25-59.80-59.25 and 55.50-54.75-54.00. Buy above 61.20-56.00 with risk daily closing below 56.00, targeting 63.15 and 63.52-64.00-64.98.

EUR/USD

EUR/USD on Wednesday an intraday low of US$1.1356/EUR, a high of US$1.1433/EUR, and settled the day up by 0.382% to close at US$1.1410/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 1.1300 and 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 1.1390-1.1420 and 1.1450-1.1470-1.1510.

GBP/USD

GBP/USD on Wednesday low of US$1.3500/GBP, a high of US$1.3592/GBP, and settled the day up 0.267% to close at US$1.3546/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 1.3470-1.3040 with a target of 1.3510-1.3570-1.3600 and 1.3645-1.3700- 1.3750-1.3790 with a stop loss closing below 1.3040. Sell in between 1.3510-1.1385 with targets at 1.3470-1.3400-1.3360-1.3300 with a stop loss of 1.3185.

USD/JPY

USD/JPY on Thursday an intra‐day low of JPY142.359/USD an intraday high of 144.38/USD, and settled the day down by 0.782% at JPY142.70/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 144.50-148.00 with risk above 149.00 targeting 145.20-144.50-143.90 and 143.00-142.50-141.90. Long positions above 143.90-138.00 with targets of 145.20-146.10-146.60-147.40 and 148.10-148.90-149.35 with stops below 138.00.