Daily Markets

• Most Asian currencies moved in a tight range on Wednesday, while the dollar pulled back mildly from recent gains amid caution before the conclusion of a Federal Reserve meeting later in the day. Currency markets clocked some gains earlier this week on optimism over a U.S.-Europe trade deal. But this optimism was short-lived amid growing caution over the Fed’s rate decision, as well as a looming deadline for more U.S. trade tariffs. Focus this week is also on a Bank of Japan meeting and key Chinese purchasing managers index data on Thursday, as well as U.S. nonfarm payrolls data on Friday. The dollar index and dollar index futures both fell about 0.1% in Asian trade, retreating after logging strong gains earlier in the week. The greenback was buoyed by optimism over the U.S. signing a trade deal with the European Union, which will see the bloc subject to 15% tariffs. The EU will also invest $600 billion in the United States. The dollar was also supported by increasing conviction that the Fed will leave rates unchanged and remain non-committal towards further easing, despite pressure from President Donald Trump to cut rates. But pressure from Trump could spell some discord for Fed policymakers. Governors Christopher Waller and Michelle Bowman could vote against Powell’s decision to hold, the Wall Street Journal’s Nick Timiraos said on Tuesday. Some signs of cooling in the labor market, coupled with more clarity on Trump’s tariffs could also leave the Fed more open towards eventually cutting rates.

Gold – XAU

Gold on Tuesday made its intraday high of US$3334.01/oz and low of $3307.93/oz. Gold is up by 0.344% at US$3326.18/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 3354-3500 keeping stop loss closing above 3500, targeting 3328-3312-3300 and 3288-3278-3267. Buy in between 3318-3220 with risk below 3200 targeting 3354-3372-3380 and 3390-3400-3424-3434 Si

Silver - XAG

Silver on Tuesday its intraday high of US$38.27/oz and low of US$37.89/oz settle down by up by 0.0655% at US$38.17/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 38.10-33.10, targeting 38.90-39.50 and 39.90-40.50-41.10 with stop loss should be placed on the breakage below 33.00. Sell in between 40.50-43.00 with a stop loss above 42.00 targeting 38.55-38.25-37.80 and 37.20-36.10-35.60-35.30.

Oil - WTI

Crude Oil on Tuesday high of US$69.36/bbl, an intraday low of US$66.21/bbl, and settled up by 0.736% to close at US$68.85 /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 65.20-72.00 with stop loss at 72.00; targeting 65.40-64.10 and 63.40-62.80-62.00. Buy above 65.40-62.00 with risk daily closing below 62.00, targeting 66.00-67.12 and 67.90-68.60-69.50.

EUR/USD

EUR/USD on Tuesday an intraday low of US$1.1518/EUR, a high of US$1.1798/EUR, and settled the day down by 0.358% to close at US$1.1543/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 1.1570-1.1990, targeting 1.1545-1.1470-1.1450 and 1.1420-1.1390 with stop-loss at daily closing above 1.1990. Buy above 1.1545-1.1410 with risk below 1.1400 targeting 1.1570-1.1600-1.1650 and 1.1690-1.1790-1.1835-1.1890.

GBP/USD

GBP/USD on Tuesday low of US$1.33087/GBP, a high of US$1.3363/GBP, and settled the day down 0.086% to close at US$1.3341/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 1.3350-1.3040 with a target of 1.3400-1.3470-1.3510 and 1.3600-1.3645-1.3710-1.3790 with a stop loss closing below 1.3040. Sell in between 1.3400-1.3850 with targets at 1.3330-1.3300-1.3245 and 1.3200-1.3160-1.3100 with a stop loss of 1.3850.

USD/JPY

USD/JPY on Tuesday an intra‐day low of JPY148.15/USD an intraday high of 148.80/USD, and settled the day up by 0.0020% at JPY148.37/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 148.50-149.00 with risk above 149.00 targeting 146.60-146.10-145.20 and 144.70-143.90-143.00. Long positions above 147.90-140.00 with targets of 148.90-149.35-149.90 with stops below 140.00.