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
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
Oil - US Crude
Mixed
Wall Street
Mixed
Gold
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
GBP/USD
Bullish
USD/JPY
Mixed
More View more
Real Time News
  • A tidal wave of cash waits to return to virus-battered assets, backstopped by huge stimulus. It is unlikely to deploy until infection slows, whatever the US administration prefers. Get your market update from @DavidCottleFX here: https://t.co/OWOi2HxejD https://t.co/oSaImLHSv5
  • IG Client Sentiment Update: Our data shows the vast majority of traders in Ripple are long at 95.69%, while traders in US 500 are at opposite extremes with 72.84%. See the summary chart below and full details and charts on DailyFX: https://www.dailyfx.com/sentiment https://t.co/F662hrVIJs
  • Forex Update: As of 04:00, these are your best and worst performers based on the London trading schedule: 🇨🇭CHF: 0.01% 🇪🇺EUR: -0.05% 🇳🇿NZD: -0.11% 🇯🇵JPY: -0.23% 🇨🇦CAD: -0.25% 🇬🇧GBP: -0.29% View the performance of all markets via https://www.dailyfx.com/forex-rates#currencies https://t.co/Eap93N4RvZ
  • Indices Update: As of 04:00, these are your best and worst performers based on the London trading schedule: US 500: -1.82% Wall Street: -1.83% Germany 30: -2.34% France 40: -2.41% View the performance of all markets via https://www.dailyfx.com/forex-rates#indices https://t.co/g3El2CLFLt
  • My trading video for today: 'Dow Ends Worst Quarter Since 1987, Oil a Record and Trump Talks Infrastructure' https://www.dailyfx.com/forex/video/daily_news_report/2020/04/01/Dow-Ends-Worst-Quarter-Since-1987-Oil-a-Record-and-Trump-Talks-Infrastructure.html?ref-author=Kicklighter&QPID=917719&CHID=9
  • Foreign exchange – or “#forex” – markets often pay close attention to politics and central bank policy. We offer a model for traders to gauge their impact on exchange rates. Get your market insight from @ZabelinDimitri and @CVecchioFX here: https://t.co/FbXc1Awu6a https://t.co/5Gp7y2QwCB
  • Forex Update: USD gains against its major counterparts, with GBP (-0.31%) and CAD (-0.31%) showing the biggest losses. https://t.co/tsmFUrcLAQ
  • Wall Street Futures [delayed]: Dow Jones (-1.37%) S&P 500 (-1.40%) Nasdaq (-0.98%) -BBG
  • The $USD is on the defensive after the Fed activated open-ended QE to becalm panicky financial markets, but scope for renewed stress means losses may be limited. Get your market update from @IlyaSpivak here:https://t.co/dX4Y2akuLc https://t.co/HTn5MtkpFO
  • (Sentiment Weekly) The #DowJones, #SP500 and #DAX30 have bounced after aggressive declines. Can this momentum last? Trader positioning seems to be offering mixed signals as technicals point bearish - https://www.dailyfx.com/forex/fundamental/article/special_report/2020/04/01/Dow-Jones-SP-500-DAX-30-Outlook-Will-the-Bounce-Last.html?CHID=9&QPID=917702&utm_source=Twitter&utm_medium=Dubrovsky&utm_campaign=twr https://t.co/qpCql2i9M8
Crude Oil Corrects, Gold Sellers Emerge at $1270 Ahead of FOMC

Crude Oil Corrects, Gold Sellers Emerge at $1270 Ahead of FOMC

2014-01-27 11:03:00
David de Ferranti, Currency Analyst
Share:

Talking Points

  • Commodities May Reverse Recent Moves as Markets Correct
  • Gold Prices Testing Critical Resistance at $1,270 Level
  • Quiet Calendar Leaves Focus on Upcoming FOMC Meeting

Crude Oil suffered on Friday as broad-based risk aversion may have prompted some profit-taking in the growth-sensitive commodity. Meanwhile, gold benefited from unravelling investor sentiment as a decline in US 10 year yields weakened the appeal of the US Dollar, driving demand for the fiat-money alternative.

While US New Home Sales figures are set to cross the wires in the hours ahead, traders may be less inclined to commit to a directional bias in light of the upcoming, highly influential FOMC meeting. Given Friday’s dramatic moves, it may be reasonable then to expect a corrective period that erases some of the ground covered in the final hours of last week’s trade.

CRUDE OIL TECHNICAL ANALYSIS The recent rally in crude has encountered some resistance just shy of the descending trending line from the September 2013 high. However, with support nearby at the 96.30 level it may be too early to call for a reversal in the absence an additional bearish signal.

Crude_Oil_Corrects_Gold_Sellers_Emerge_at_1270_Ahead_of_FOMC_body_Picture_4.png, Crude Oil Corrects, Gold Sellers Emerge at $1270 Ahead of FOMC

Daily Chart - Created Using FXCM Marketscope 2.0

GOLD TECHNICAL ANALYSIS A break above the descending trend line from the January 2013 high, along with a short-term uptrend (signaled by the 20 SMA), are both providing bullish signals for gold. However the precious metal has encountered some selling pressure at $1,270, which represents the 50% Fib retracement level from the October to December 2013 decline. While there is an absence of a strong reversal signal, it may be preferable to wait for clearance of $1,270 before looking at entering new long positions.

Crude_Oil_Corrects_Gold_Sellers_Emerge_at_1270_Ahead_of_FOMC_body_Picture_3.png, Crude Oil Corrects, Gold Sellers Emerge at $1270 Ahead of FOMC

Daily Chart - Created Using FXCM Marketscope 2.0

SILVER TECHNICAL ANALYSIS The recent consolidation in the silver price has resulted in an ascending triangle formation. The fact that sellers have been unable to push the commodity down to its previous lows may be signaling an imminent upside breakout. A move above the 38.2% Fib retracement level ($20.48) would open up $21.

Crude_Oil_Corrects_Gold_Sellers_Emerge_at_1270_Ahead_of_FOMC_body_Picture_2.png, Crude Oil Corrects, Gold Sellers Emerge at $1270 Ahead of FOMC

Daily Chart - Created Using FXCM Marketscope 2.0

COPPER TECHNICAL ANALYSIS Building downside momentum in the recent downtrend is warning of further declines for copper. A break below buying support at $3.26 may pave the way for a fall towards the December 2013 low around $3.18.

Crude_Oil_Corrects_Gold_Sellers_Emerge_at_1270_Ahead_of_FOMC_body_Picture_1.png, Crude Oil Corrects, Gold Sellers Emerge at $1270 Ahead of FOMC

Daily Chart - Created Using FXCM Marketscope 2.0

--- Written by David de Ferranti, Market Analyst, FXCM Australia

To receive David’sanalysis directly via email, please sign up here

Contact and follow David on Twitter: @DaviddeFe

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

DISCLOSURES

News & Analysis at your fingertips.