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.

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
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
Oil - US Crude
Mixed
Wall Street
Mixed
Gold
Mixed
GBP/USD
Bearish
USD/JPY
Bullish
More View more
Real Time News
  • Trading bias allows traders to make informative decisions when dealing in the market. This relates to both novice and experienced traders alike. Start learning how you may be able to make more informed decisions here: https://t.co/rz7fqhRoMG https://t.co/3bOSIBeID9
  • Rising yields and US Dollar creates a weak environment for gold, which trades at a 9-month low. Get your market update from @JMcQueenFX here: https://t.co/lh6Qb2qxin https://t.co/MRAYe57e1A
  • RT @FxWestwater: US Dollar Fundamental Forecast: US Dollar Eyes Inflation Data After NFP Boost Link: https://www.dailyfx.com/forex/fundamental/forecast/weekly/usd/2021/03/06/US-Dollar-Fundamental-Forecast-US-Dollar-Eyes-Inflation-Data-after-NFP-Boost.html?CHID=9&QPID=917708&utm_source=Twitter&utm_medium=Westwater&utm_campaign=twr $DXY https://…
  • Forex liquidity makes it easy for traders to sell and buy currencies without delay, and also creates tight spreads for favorable quotes. Low costs and large scope to various markets make it the most frequently traded market in the world. Learn more here: https://t.co/arxYmtQeUn https://t.co/NvEAeWkBP1
  • The British Pound continues to face downside pressure as corrective trades continue. Get your market update from @HathornSabin here: https://t.co/YCctQSt2vB https://t.co/naVcnmf9UT
  • Forex quotes reflect the price of different currencies at any point in time. Since a trader’s profit or loss is determined by movements in price, it is essential to develop a sound understanding of how to read currency pairs. Learn how to read quotes here: https://t.co/CNtqrKWDBY https://t.co/vABKiG4WNe
  • A currency carry trade involves borrowing a low-yielding currency in order to buy a higher yielding currency in an attempt to profit from the interest rate differential. Find out if the carry trade suits your trading style here: https://t.co/7t4BzmLg8w https://t.co/IQyDCjb5Dn
  • Get your snapshot update of the of top level exchanges and key index performance from around the globe here: https://t.co/d8Re5anlG5 https://t.co/xFYoNUKhsM
  • Currency exchange rates are impacted by several factors. Are different world leaders a contributing factor? Find out here: https://t.co/4jsORznRTE https://t.co/ZjrCYXTIdD
  • Many people are attracted to forex trading due to the amount of leverage that brokers provide. Leverage allows traders to gain more exposure in financial markets than what they are required to pay for. Learn about FX leverage here: https://t.co/BdgFmkRxVw https://t.co/dPE4AsJxqv
Crude Braces For Volatility On Inventories, Gold Awaiting Fed Minutes

Crude Braces For Volatility On Inventories, Gold Awaiting Fed Minutes

David de Ferranti, Currency Analyst

Talking Points

  • Crude Oil Hangs Hopes On A Bullish Inventories Report
  • Gold, Silver Remain Vulnerable To Fading Geopolitical Fears
  • Technicals Warn Of Weakness For The Precious Metals

Crude oil has managed to regain its footing in Asian trading today as investors turn to upcoming US inventories data for guidance. Meanwhile, the precious metals remain in a precarious position as fading geopolitical concerns threaten the allure of the safe-haven assets.

Crude Hangs Hopes On Bullish Inventories Report

The WTI and Brent benchmarks faced another barrage of selling pressure on Tuesday. An absence of fresh oil impacting news flow from the Middle East has likely eased fears over supply disruptions from the region. This may leave the commodity to turn its attention back to the US and the upcoming DOE Weekly Petroleum Status Report for its bearings.

Recent figures from the government agency have painted a somewhat mixed picture. The latest round of data revealed a rise in total stockpiles, which remain well above their seasonal average. Yet, a drawdown in gasoline and distillate inventories also suggests robust demand for the commodity. Another ensemble of mixed figures may fail to spur a sustained recovery for crude. However, given the extent of the commodity’s recent declines the potential for a corrective bounce should not be overlooked.

Precious Metals Exposed As Geopolitical Concerns Ebb

Gold and silver have managed to catch their breath during the Asian session today after sustaining further declines on Tuesday. An unwinding of safe-haven positioning in the precious metals was compounded by a buoyant greenback following a positive set of US housing figures.

The yellow metal remains vulnerable to a continued correction in the absence of an escalation on the geopolitical front. However, lingering uncertainty surrounding Eastern Europe may still offer a small source of support which could help slow gold’s descent.

The Fed’s July Meeting Minutes may also offer the metals some guidance from the US Dollar side of the equation. Traders will be scrutinizing the communique to gauge the degree of policy maker’s concerns surrounding the US labor market. The greenback may struggle to sustain a recovery if a dovish tone is retained, which in turn could see some of the weight lifted from gold’s back.

CRUDE OIL TECHNICAL ANALYSIS

Downside risks remain for crude over the coming weeks with a backdrop of a sustained downtrend alongside negative momentum (signaled by the ROC). However, given the speed and magnitude of the commodity’s descent, the potential a short-term corrective bounce should not be neglected. A daily close above the descending trendline and 98.90 barrier would be required to signal a shift in sentiment to the upside and to mark a small base.

Crude Oil: Facing Further Weakness With Downtrend Intact

Crude Braces For Volatility On Inventories, Gold Awaiting Fed Minutes

Daily Chart - Created Using FXCM Marketscope 2.0

GOLD TECHNICAL ANALYSIS

Gold has managed to post a daily close below the 1,305 floor that had kept the precious metal supported over recent weeks. This makes for a convincing break which casts the immediate risks lower. Sustained weakness would likely be met by buying interest near the July lows at 1,280. Meanwhile, a climb back within the 1,305 to 1,320 trading band would suggest a renewed range-bound environment.

The DailyFX SpeculativeSentimentIndex suggests a bearish bias for gold based on trader positioning.

Gold: Daily Close Below 1,305 Opens Knock On 1,280

Crude Braces For Volatility On Inventories, Gold Awaiting Fed Minutes

Daily Chart - Created Using FXCM Marketscope 2.0

SILVER TECHNICAL ANALYSIS

Silver may be set to continue its journey towards the 19.00 target that had been offered in recent commodities reports. The sustained presence of a short-term downtrend on the daily reinforces the prospect of further weakness for the precious metal. A daily close above the descending trendline and 20.10 ceiling would be required to shift the bias to the upside.

Silver: Targeting 19.00 Handle With Downtrend Intact

Crude Braces For Volatility On Inventories, Gold Awaiting Fed Minutes

Daily Chart - Created Using FXCM Marketscope 2.0

COPPER TECHNICAL ANALYSIS

The spotlight remains on the $3.00/01 floor following a failure to climb back over the 3.12 hurdle. Bearish technical signals including the double top formation and sustained presence of a downtrend also remain for the base metal. The prospect of a sustained recovery seems questionable at this point after a Piercing Line pattern failed to find much follow-through.

Copper: Downside Risks Remain Sub 3.12

Crude Braces For Volatility On Inventories, Gold Awaiting Fed Minutes

Daily Chart - Created Using FXCM Marketscope 2.0

PALLADIUM TECHNICAL ANALYSIS

Palladium has retreated slightly after hitting the 900 target that was offered in recent reports. An Evening Star formation on the daily warns of a correction, yet awaits confirmation from an ensuing down session. At this stage buying dips is preferred against the backdrop of a core uptrend.

Palladium: Evening Star Warns Of A Correction Within Uptrend

Crude Braces For Volatility On Inventories, Gold Awaiting Fed Minutes

Daily Chart - Created Using FXCM Marketscope 2.0

PLATINUM TECHNICAL ANALYSIS

Platinum may face further weakness following its clearance of the ascending trend channel on the daily. This is reinforced by the sustained presence of a downtrend (denoted by the 20 SMA), as well as an Evening Star formation near 1,486. A daily close below the nearby 1,443 barrier opens the July lows near 1,424.

Platinum: Crashes Through Trendline Support

Crude Braces For Volatility On Inventories, Gold Awaiting Fed Minutes

Daily Chart - Created Using FXCM Marketscope 2.0

Written by David de Ferranti, Currency Analyst, DailyFX

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