News & Analysis at your fingertips.

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. See our updated Privacy Policy here.

0

Notifications

Notifications below are based on filters which can be adjusted via Economic and Webinar Calendar pages.

Live Webinar

Live Webinar Events

0

Economic Calendar

Economic Calendar Events

0
Free Trading Guides
Subscribe
Please try again
Oil - US Crude
Bullish
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
More View more
Real Time News
  • Knowing how to accurately value a stock enables traders to identify and take advantage of opportunities in the stock market. Find out the difference between a stock's market and intrinsic value, and the importance of the two here: https://t.co/QszmdZFxlk https://t.co/paOy1oQmn3
  • US indices have a packed week ahead with earnings from the major technology names, US GDP data due and an FOMC rate decision. With so much on the docket the potential for volatility is heightened. Get your stock market forecast from @PeterHanksFX here: https://t.co/CH4WoStHvu
  • GDP (Gross Domestic Product) economic data is deemed highly significant in the forex market. GDP figures are used as an indicator by fundamentalists to gauge the overall health and potential growth of a country. Learn use GDP data to your advantage here: https://t.co/Yl9vM7kO6a https://t.co/otJwnuR7qe
  • The Federal Reserve System (the Fed) was founded in 1913 by the United States Congress. The Fed’s actions and policies have a major impact on currency value, affecting many trades involving the US Dollar. Learn more about the Fed here: https://t.co/ADSC4sIHrP https://t.co/s4lZWdJoXV
  • The US Dollar Index traded higher last week, sustaining its broader uptrend. Conflicting technical signals urge caution, but the directional bias remains skewed to the upside. Get your weekly USD technical forecast from @FxWestwater here: https://t.co/jcwhcsUBEN https://t.co/tKrlrRZlZn
  • Technical analysis of charts aims to identify patterns and market trends by utilizing differing forms of technical chart types and other chart functions. Learn about the top three technical analysis tools here: https://t.co/KDjIjLdTSk https://t.co/MGy9OTXpUI
  • The Australian Dollar still remains vulnerable as it extends losses against its major counterparts. What is the road ahead for AUD/USD, AUD/JPY, AUD/NZD and AUD/CAD? Get your AUD technical forecast from @ddubrovskyFX here: https://t.co/ph20zFv4qS https://t.co/v4g9ATf4rr
  • The ISM manufacturing index plays an important role in forex trading, with ISM data influencing currency prices globally. Learn about the importance of the ISM manufacturing index here: https://t.co/Xr3xtoFpZy https://t.co/De69mTseZN
  • Take a closer look visually at the most influential global importers and exporters here: https://t.co/G58J1dg6y3 https://t.co/D7AeTM5OpH
  • EUR/USD tumbled last week on the day of the ECB’s latest policy announcement, and that weakness is set to continue this week as a flood of major Eurozone economic statistics is released. Get your weekly Euro forecast from @MartinSEssex here: https://t.co/9B4rJnzWuz https://t.co/ENF3xlkuyP
Commodities May Face Broad Selling Pressure After Fed Rate Decision

Commodities May Face Broad Selling Pressure After Fed Rate Decision

Ilya Spivak, Head Strategist, APAC

Talking Points

  • Commodities Yield Mixed Results in Europe as Markets Wait for FOMC
  • Broad Selling Pressure May Emerge as Fed Disappoints Stimulus Hopes

Commodity prices are little changed near familiar levels in early European trade as markets wait for guidance from the Federal Reserve monetary policy announcement. Ben Bernanke and company appear likely to disappoint investors’ hopes for further stimulus. This is likely to weigh on growth-linked crude oil and copper prices as hopes for a boost to the US recovery that would make it a more potent offset to recession in Europe and slowdown in Asia are upset. It likewise stands to punish gold and silver amid ebbing demand for the precious metals as an inflation hedge.

Yields across the maturity spectrum are hovering near record lows having arrived there without new stimulus since QE2 ended in June 2011. It seems unreasonable to suggest that more asset purchases are needed to keep credit costs capped or that marginally cheaper funding will bring a significant number of would-be borrowers off the sidelines. That means the core benefit of a QE3 program would be psychological, marking it as a tool the Fed is likely to reserve to use in the event that the Eurozone debt crisis breeds a 2008-style credit crunch.

WTI Crude Oil (NY Close): $88.06 // -1.72 // -1.92%

Prices are testing support in the 87.65-88.32 area, marked by the July 3 closing high and the 14.6% Fibonacci expansion, with a break lower exposing the 23.6% level at 85.37. Near-term resistance stands at the 90.00 figure, with a push above that targeting the July 19 high at 93.21.

Commodities_May_Face_Broad_Selling_Pressure_After_Fed_Rate_Decision_body_Picture_3.png, Commodities May Face Broad Selling Pressure After Fed Rate Decision

Daily Chart - Created Using FXCM Marketscope 2.0

Spot Gold (NY Close): $1614.30 // -7.67 // -0.47%

Prices put in a bearish Evening Star candlestick pattern at resistance in the 1620.45-35.70 area, hinting a move lower is ahead. Near-term support is at a falling trend line resistance set from late March, now at 1595.57. A break below that targets 1568.58.

Commodities_May_Face_Broad_Selling_Pressure_After_Fed_Rate_Decision_body_Picture_4.png, Commodities May Face Broad Selling Pressure After Fed Rate Decision

Daily Chart - Created Using FXCM Marketscope 2.0

Spot Silver (NY Close): $27.99 // -0.20 // -0.70%

Prices continue to hold below resistance at 28.44, the July 3 high, after breaking past 27.68. Renewed upside momentum that takes prices through resistance initially targets 29.42. The 27.68level has been recast as near-term support, with a break back below that targeting 26.75.

Commodities_May_Face_Broad_Selling_Pressure_After_Fed_Rate_Decision_body_Picture_5.png, Commodities May Face Broad Selling Pressure After Fed Rate Decision

Daily Chart - Created Using FXCM Marketscope 2.0

COMEX E-Mini Copper (NY Close): $3.418 // +0.002 // +0.06%

Prices are consolidating below resistance at 3.445, the 14.6% Fibonacci expansion. A break higher targets the next upside boundary at 3.535. Near-term support lines up in the 3.378-90 area marked by the July 10 daily close and the 23.6% Fib. A push below this targets trend line support now at 3.342.

Commodities_May_Face_Broad_Selling_Pressure_After_Fed_Rate_Decision_body_Picture_6.png, Commodities May Face Broad Selling Pressure After Fed Rate Decision

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