Daily Markets

• Most Asian currencies weakened on Monday, while the dollar firmed after the U.S. over the weekend attacked three key nuclear facilities in Iran, putting markets on edge over Tehran’s response. The greenback benefited chiefly from increased safe haven demand, with other havens such as gold and the Japanese yen losing ground. Asian currencies were also nursing some losses from last week, following hawkish signals from the Federal Reserve. A slew of Fed officials are set to speak in the coming days, potentially offering up more cues on the path of interest rates. Fed Chair Jerome Powell will testify before Congress on Tuesday and Wednesday. Regional currencies also largely weakened past strong economic prints from Australia and Japan. The dollar index and dollar index futures both rose 0.3% each in Asian trade, extending mild gains from the prior week. The greenback was buoyed chiefly by safe haven demand, as traders waited to see just how Tehran will respond to the attacks. U.S. President Donald Trump claimed that the attacks had wiped out Iran’s nuclear facilities, essentially quashing the country’s nuclear ambitions. Trump had claimed that Iran was building a nuclear weapon, while Tehran had repeatedly asserted that this was not the case. Iranian media reports said that the country was now planning to block the Strait of Hormuz as retaliation for the attacks. Such a move stands to greatly disrupt oil supplies to swathes of Asia and Europe, which could in turn spur economic disruptions. il prices shot up after the attack, driving up concerns that high energy prices could fuel stickier inflation. This fueled a risk-averse trade in Asia. The Chinese yuan’s USDCNY pair rose 0.1%, while the Singapore dollar’s USDSGD pair rose 0.2%. China “strongly condemned” the U.S. attack and called on Israel to reach a ceasefire. The PMI print reflected some resilience in the Australian economy, especially amid a recovery in private consumption in the country. The Japanese yen’s USDJPY pair rose 0.5%, with the currency seeing little safe haven demand. PMI data showed Japan’s manufacturing sector grew for the first time in 11 months in June, while service sector growth accelerated on improving consumer spending in the country.

Gold – XAU

Gold on its Friday intraday high of US$3374.42/oz and low of $3368.72/oz. Gold is up by 0.0831% at US$3368.72/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 3372-3500 keeping stop loss closing above 3500, targeting 3345-3320-3300 and 3287-3274-3244. Buy in between 3352-3287 with risk below 3200 targeting 3372-3386-3404-and 3430-3438-3444-3460.

Silver - XAG

Silver on Friday its intraday high of US$36.41/oz and low of US$35.49/oz settle down by down by 0.908% at US$36.01/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 35.60-33.10, targeting 36.50-37.00 and 37.80-38.25-38.90 with stop loss should be placed on the breakage below 29.00. Sell in between 36.10-38.60 with a stop loss above 39.00 targeting 35.60-35.30 and 35.00-34.85-34.30.

Oil - WTI

Crude Oil on Friday high of US$73.98/bbl, an intraday low of US$72.06/bbl, and settled up by 0.438% to close at US$73.70/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 74.70-76.00 with stop loss at 76.00; targeting 72.10-71.50-70.90 and 70.50-69.70-69.00. Buy above 73.10-69.00 with risk daily closing below 69.00, targeting 74.70-75.50-76.00.

EUR/USD

EUR/USD on Friday an intraday low of US$1.14857/EUR, a high of US$1.15433/EUR, and settled the day up by 0.276% to close at US$1.1521/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 1.1545-1.1740, targeting 1.1470-1.1450-1.1420 and 1.1390-1.1300-1.1250 with stop-loss at daily closing above 1.1035. Buy above 1.1500-1.1010 with risk below 1.1010 targeting 1.1545-1.1570 and 1.16501.1690-1.1745.

GBP/USD

GBP/USD on Friday low of US$1.3437/GBP, a high of US$1.3469/GBP, and settled the day up 0.363% to close at US$1.3462/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 1.3435-1.3040 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 1.3570-1.3850 with targets at 1.3470-1.3400-1.3360-1.3300 with a stop loss of 1.3185.

USD/JPY

USD/JPY on Friday an intra‐day low of JPY145.11/USD an intraday high of 146.20/USD, and settled the day up by 0.2261% at JPY146.08/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 147.40-149.00 with risk above 149.00 targeting 146.60-146.10-145.20 and 144.50-143.90-143.00. Long positions above 146.60-140.00 with targets of 147.40 and 148.10-148.90-149.35 with stops below 138.00.