We use a range of cookies to give you the best possible browsing experience. By continuing to use this website, you agree to our use of cookies.
You can learn more about our cookie policy here, or by following the link at the bottom of any page on our site.

Free Trading Guides
EUR/USD
Mixed
Low
High
of clients are net long.
of clients are net short.
Long Short

Note: Low and High figures are for the trading day.

Data provided by
GBP/USD
Mixed
USD/JPY
Mixed
Low
High
of clients are net long.
of clients are net short.
Long Short

Note: Low and High figures are for the trading day.

Data provided by
Gold
Bearish
Low
High
of clients are net long.
of clients are net short.
Long Short

Note: Low and High figures are for the trading day.

Data provided by
Oil - US Crude
Mixed
Low
High
of clients are net long.
of clients are net short.
Long Short

Note: Low and High figures are for the trading day.

Data provided by
Bitcoin
Mixed
More View more
Real Time News
  • RT @TimBukOne: @ShaunMurison_IG Update: Now with latest real-time price added - lowest levels since 2003 using inflation adjusted, constant…
  • LIVE NOW: Join DailyFX Market Analyst @DavidCottleFX for a look ahead at the major economic data which will drive Asia Pacific markets in the coming seven days. https://www.dailyfx.com/webinars/985612483
  • Have you joined @DailyFX @facebook group yet? Discuss your #forex strategies and brush up on your skills with us here: https://t.co/jtY1G7g8yx https://t.co/h72ZbD8gUS
  • Indices Update: As of 08:00, these are your best and worst performers based on the London trading schedule: US 500: -1.63% Wall Street: -1.63% Germany 30: -2.26% France 40: -2.36% View the performance of all markets via https://www.dailyfx.com/forex-rates#indices https://t.co/APzhDnjKfP
  • European Opening Calls From IG: #FTSE 7304 -1.35% #DAX 13316 -1.94% #CAC 5918 -1.85% #AEX 604 -2.09% #MIB 23913 -3.47% #IBEX 9711 -1.77% #STOXX 3722 -2.06%
  • LIVE IN 30 MIN: Join DailyFX Market Analyst @DavidCottleFX for a look ahead at the major economic data which will drive Asia Pacific markets in the coming seven days. https://www.dailyfx.com/webinars/985612483
  • #Sasol now trading at its worst levels since March 2006, currently sub R200, sinking sub now, remember #Amagluglug $JSESOL #JSE https://t.co/MxWzMTouDa
  • Join @DavidCottleFX 's #webinar at 3:00 AM ET/8:00 AM GMT for your weekly update on the top Asia Pacific market drivers that traders should watch this week. Register here: https://t.co/HNf3Axw8s5 https://t.co/Jo2jnRw0BB
  • Hey, traders 👋 do you want live AMAS with our analysts, market updates and tools to improve your trading strategy? Join us now on Instagram! 👉 https://t.co/pHGzVMqsC4 https://t.co/3winKcMWuw
  • IG Client Sentiment Update: Our data shows the vast majority of traders in Ripple are long at 96.79%, while traders in USD/CAD are at opposite extremes with 75.17%. See the summary chart below and full details and charts on DailyFX: https://www.dailyfx.com/sentiment https://t.co/jK81iOAl6h
Crude Oil, Gold Vulnerable with US Dollar Poised to Extend Recovery

Crude Oil, Gold Vulnerable with US Dollar Poised to Extend Recovery

2011-10-31 12:31:00
Ilya Spivak, Sr. Currency Strategist
Share:

Talking Points

  • Crude Oil Likely to Decline as S&P 500 Index Futures Point to Risk Aversion
  • Gold Down as US Dollar Mounts Aggressive Recovery to Start Trading Week

WTI Crude Oil (NY Close): $93.32 // -0.64 // -0.68%

Crude oil continues to reflect broad-based sentiment trends, with the WTI contract still showing a firm correlation with the S&P 500. This points the way lower as futures tracking the benchmark index trade aggressively lower ahead of the opening bell on Wall Street, hinting the rout that began in Asia and carried over into early European trade is set to continue.

Some profit-taking on risk-linked assets after the sharp advance in the aftermath of last week’s EU summit was to be expected, but the current move seems to be at least equally reflective of protective repositioning as traders brace for a week packed with fundamental event risk. Chicago PMI and the Dallas Fed Manufacturing Activity Index releases headline the docket for today. Conflicting outcomes are expected, with the former reading pointing to a narrow deterioration in the pace of regional manufacturing- and service-sector growth while the latter, which focuses exclusively on the factory sector, signals a narrow improvement in October. The figures will help set the stage for the higher-profile ISM survey readings as well as the closely-watched Nonfarm Payrolls jobs report due later in the week.

Similar to the S&P 500, prices formed a Hanging Man candlestick below resistance at $94.87, the 50% Fibonacci retracement barrier. A selloff from here sees initial support at $90.17, the 38.2% Fib, with a break below that exposing $85.33 and $79.62.

Crude_Oil_Gold_Vulnerable_with_US_Dollar_Poised_to_Extend_Recovery_body_Picture_3.png, Crude Oil, Gold Vulnerable with US Dollar Poised to Extend Recovery

Spot Gold (NY Close): $1743.75 // -1.10 // -0.06%

Gold came under pressure as the recovery aggressive recovery in the US Dollar on renewed safe-haven demand amplified by Japan’s intervention into the USDJPY exchange rate amounted to a de-facto headwind for the yellow metal. The sharp losses seen on S&P 500 stock index futures heading into North American trade promise more of the same.

Sizing up the technical landscape, prices put in a Doji candlestick below support-turned-resistance at $1745.15, with a subsequent decline on pace to complete a bearish Evening Star pattern. Initial support stands at the $1700 figure, the now familiar range top established in late September, with a break below that exposing the 23.6% Fibonacci extension at $1660.81.

Crude_Oil_Gold_Vulnerable_with_US_Dollar_Poised_to_Extend_Recovery_body_Picture_4.png, Crude Oil, Gold Vulnerable with US Dollar Poised to Extend Recovery

Spot Silver (NY Close): $35.32 // +0.22 // +0.62%

As with gold, silver is edging lower on the back of the sharp rebound in the US Dollar. Resistance has been found at $35.12, the 50% Fibonacci retracement, with prices turning lower toward support at the 38.2% level ($32.98). Alternatively, a reversal higher exposes the 61.8% Fib at $37.25.

Crude_Oil_Gold_Vulnerable_with_US_Dollar_Poised_to_Extend_Recovery_body_Picture_5.png, Crude Oil, Gold Vulnerable with US Dollar Poised to Extend Recovery

--- Written by Ilya Spivak, Currency Strategist for Dailyfx.com

To contact Ilya, e-mail ispivak@dailyfx.com. Follow me on Twitter at @IlyaSpivak

To be added to Ilya's e-mail distribution list, send a note with subject line "Distribution List" to ispivak@dailyfx.com

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.

DISCLOSURES

News & Analysis at your fingertips.