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
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
GBP/USD
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
USD/JPY
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
Gold
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
Oil - US Crude
Mixed
Bitcoin
Bullish
More View more
Real Time News
  • Forex Update: As of 15:00, these are your best and worst performers based on the London trading schedule: 🇨🇦CAD: 0.09% 🇦🇺AUD: -0.13% 🇪🇺EUR: -0.14% 🇳🇿NZD: -0.26% 🇨🇭CHF: -0.42% 🇬🇧GBP: -0.59% View the performance of all markets via https://www.dailyfx.com/forex-rates#currencies https://t.co/D580zjY6T3
  • bounce eviscerated https://t.co/zkMNPktUPL
  • GBP/JPY, EUR/JPY Nearing a Downside Break - EUR & GBP vs JPY Price Forecast More details in the link below: https://www.dailyfx.com/forex/technical/home/analysis/gbp-jpy/2020/01/28/GBPJPY-EURJPY-Nearing-a-Downside-Break---EUR-GBP-vs-JPY-Price-Forecast-MK.html?CHID=9&QPID=917714 https://t.co/jPJ2iG6IFx
  • Indices Update: As of 15:00, these are your best and worst performers based on the London trading schedule: France 40: 1.14% US 500: 1.05% Wall Street: 0.78% Germany 30: 0.76% View the performance of all markets via https://www.dailyfx.com/forex-rates#indices https://t.co/0wIoAKDiZC
  • UK's Raab says the United States did not give a reasonable alternative for Huawei's 5G network $DXY $GBP
  • Commodities Update: As of 15:00, these are your best and worst performers based on the London trading schedule: Oil - US Crude: 0.37% Gold: -0.60% Silver: -2.40% View the performance of all markets via https://www.dailyfx.com/forex-rates#commodities https://t.co/f8zNyj8rrB
  • RT @LiveSquawk: US CB Consumer Confidence Jan: 131.6 (est 128.0; prev R 128.2) - Expectations Jan: 102.5 (prev 97.4) - Present Situation Ja…
  • RT @bespokeinvest: Biggest beat relative to expectations (20 vs -3) for Richmond Fed since March 2009.
  • 🇺🇸 USD Conf. Board Present Situation (JAN), Actual: 175.3 Expected: N/A Previous: 170 https://www.dailyfx.com/economic-calendar#2020-01-28
  • 🇺🇸 USD Consumer Confidence Index (JAN), Actual: 131.6 Expected: 128.0 Previous: 128.2 https://www.dailyfx.com/economic-calendar#2020-01-28
Crude Oil, Metals Looking for Fed Stimulus Hopes to Extend Gains

Crude Oil, Metals Looking for Fed Stimulus Hopes to Extend Gains

2012-03-27 08:05:00
Ilya Spivak, Sr. Currency Strategist
Share:

Talking Points

  • Crude Oil and Copper Look to US Data, Fed Comments to Extend Advance
  • Gold and Silver May Reverse Lower if QE3 Expectations Appear Overdone

Commodity prices rose yesterday after Federal Reserve Chairman Ben Bernanke said accommodative monetary policy was needed to stoke improvement in the labor market, which the markets interpreted to signal that a third round of quantitative easing (QE3) was still in the cards. A lackluster set of US economic data offered a fitting backdrop for the Fed chief’s comments. Growth-sensitive crude oil and copper prices followed stocks higher on hopes additional stimulus will accelerate the still patchy recovery while gold and silver rose as the prospect of renewed dilution of the US Dollar stoked store-of-value demand.

Looking ahead, the stage appears set for a repeat performance. The Conference Board’s measure of US consumer confidence and Richmond Fed manufacturing activity gauge are forecast to show moderation in March while the Fed speaking docket features NY Fed President Bill Dudley and Governor Elizabeth Duke, both of whom tend to fall on the dovish side of the spectrum. S&P 500 stock index futures warn against jumping to conclusions too soon however, trading conspicuously flat ahead of the opening bell on Wall Street and hinting that investors remain uneasy about showing directional commitment to Monday’s moves.

On balance, the markets investors may not be quite as sold on the prospects for QE3 as yesterday price action would suggest. Indeed, Bernanke’s mention of accommodative monetary policy need not have referred to asset purchases at all and may have been aimed at the pledge to keep rates low through late 2014. This leaves the door open for a correction as yesterday’s moves begin to appear overdone upon closer examination unless the US calendar is able to meaningfully advance the argument for additional stimulus beyond where it was left at Monday’s close of North American exchanges.

WTI Crude Oil (NY Close): $107.03 // +0.16 // +0.15%

Prices put in a bullish Piercing Line candlestick above support at 104.75, the 38.2% Fibonacci retracement, hinting a move higher is ahead. Initial falling trend line resistance lines up at 108.04, with a break upward initially exposing the March 19 swing high at 108.66.

Crude_Oil_Metals_Looking_for_Fed_Stimulus_Hopes_to_Extend_Gains_body_Picture_3.png, Crude Oil, Metals Looking for Fed Stimulus Hopes to Extend Gains

Daily Chart - Created Using FXCM Marketscope 2.0

Spot Gold (NY Close): $1690.07 // +28.17 // +1.70%

Prices broke through resistance at 1666.37 to challenge the 23.6% Fibonacci expansion at 1691.06. A break above this boundary exposes the February 6 close at 1719.76 followed by the 38.2% Fib at 1730.38. The 1666.37 level has been recast as near-term support.

Crude_Oil_Metals_Looking_for_Fed_Stimulus_Hopes_to_Extend_Gains_body_Picture_4.png, Crude Oil, Metals Looking for Fed Stimulus Hopes to Extend Gains

Daily Chart - Created Using FXCM Marketscope 2.0

Spot Silver (NY Close): $32.82 // +0.60 // +1.89%

Prices completed a bullish Three Outside Up candlestick pattern above support at 31.67, the 50% Fibonacci retracement level, warning of an upward reversal ahead. The bulls now challenge the 38.2% Fib at 32.97, with a daily close above this barrier invalidating a Head and Shoulders top carved out between late January and mid-March to expose the 23.6% level at 37.59.

Crude_Oil_Metals_Looking_for_Fed_Stimulus_Hopes_to_Extend_Gains_body_Picture_5.png, Crude Oil, Metals Looking for Fed Stimulus Hopes to Extend Gains

Daily Chart - Created Using FXCM Marketscope 2.0

COMEX E-Mini Copper (NY Close): $3.888 // +0.080 // +2.10%

Prices appear to be forming a Triangle chart pattern above support at 3.696, the 38.2% Fibonacci retracement level. The setup warns of bullish continuation ahead, although confirmation is needed on a daily close above the Triangle’s top (now at 3.902). Near-term support lines up at 3.762, the formation’s lower boundary.

Crude_Oil_Metals_Looking_for_Fed_Stimulus_Hopes_to_Extend_Gains_body_Picture_6.png, Crude Oil, Metals Looking for Fed Stimulus Hopes to Extend Gains

Daily Chart - Created Using FXCM Marketscope 2.0

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

To contact Ilya, e-mail ispivak@dailyfx.com. Follow Ilya 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.