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
EUR/USD
Bullish
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
Wall Street
Bearish
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
GBP/USD
Bullish
USD/JPY
Bullish
More View more
Real Time News
  • $Gold snap back, testing support around prior res 1796-1800. prior eight-year-high up to the 1800 psych level https://t.co/LPyHLlQpk8 https://t.co/lEkGvK14kK
  • Arizona virus cases increase 3.7%, in line with prior 7-day average - BBG
  • Hey traders! Market risk appetite is highly concentrated. What are some other market highlights for today? Find out from @DailyFX Chief Strategist @JohnKicklighter 👇 https://t.co/YvQTLDBK7p
  • Update on #Cryptocurrencies #BITCOIN -1.27% #BITCOINCASH -2.20% #ETHEREUM -1.62% #RIPPLE +1.59% #LITECOIN -1.11%
  • $EURUSD continuing to catch resistance from the 1292 level, working on its sixth consecutive week. This week has, so far, brought on a higher-high, but can bulls continue to drive? $USD breakdown potential the key for whether or not EUR/USD can push up for a re-test 1500 https://t.co/6MeQmEpluO
  • Hey traders! Market risk appetite is highly concentrated. What are some other market highlights for today? Find out 👇 https://t.co/ebfF9W6nCU
  • $USD $DXY | US Dollar getting a boost over the last hour and attempting to claw back downside notched earlier this week with market sentiment starting to sour. https://t.co/tZGJ4vu9Ij
  • Forex Update: As of 14:00, these are your best and worst performers based on the London trading schedule: 🇬🇧GBP: 0.02% 🇯🇵JPY: 0.00% 🇨🇭CHF: -0.14% 🇪🇺EUR: -0.27% 🇦🇺AUD: -0.31% 🇨🇦CAD: -0.35% View the performance of all markets via https://www.dailyfx.com/forex-rates#currencies https://t.co/8V1MBXTus6
  • This will be my last week hosting this webinar for the time being and we'll finish it up with a look at $NZDUSD https://t.co/ssGJfuaxFg
  • Indices Update: As of 14:00, these are your best and worst performers based on the London trading schedule: Germany 30: 0.55% France 40: -0.49% US 500: -0.87% FTSE 100: -1.18% Wall Street: -1.34% View the performance of all markets via https://www.dailyfx.com/forex-rates#indices https://t.co/WkTdltLy6Y
Gold Resumes Descent As USD Bulls Return, Crude Oil Lacking Fuel

Gold Resumes Descent As USD Bulls Return, Crude Oil Lacking Fuel

2014-08-25 07:54:00
David de Ferranti, Currency Analyst
Share:

Talking Points

  • Crude Oil Consolidates As Traders Look Past Geopolitical Turmoil
  • Precious Metals Drifting Lower On Yellen-Inspired USD Strength
  • Silver Marching Towards $19.00 Alongside Bearish Tech. Signals

Crude oil traders are likely catching their breath after several weeks of sharp declines for the commodity. An absence of major oil-impacting news flow from the Middle East could leave the WTI benchmark to continue its consolidation. Yet in the absence of a material escalation of the turmoil in Iraq or Eastern Europe the fundamental drive for a sustained recovery may be lacking.

Meanwhile, the precious metals are drifting lower in Asian trading today. Broad-based US Dollar strength following the Jackson Hole Symposium over the weekend has likely weighed on gold. However, the fundamental catalysts to spur further gains for the greenback over the remainder of the session are relatively limited. US Housing data and service PMIs due in the coming hours remain on the periphery compared to labor market figures in terms of shaping policy expectations. A lackluster session for the USD could in turn afford gold and silver some breathing room.

CRUDE OIL TECHNICAL ANALYSIS

Crude is threatening a corrective bounce following the emergence of a Harami candlestick pattern on the daily. Yet odds of a more sustained recovery remain stacked against the commodity. This is in light of the sustained downtrend made evident by the descending trendline and prices holding below the 20 SMA. Sellers are likely to re-emerge at the 95.00 handle, which may offer a fresh entry into new short positions. A daily close above the trendline barrier would likely be required to signal the possibility of a more sustained shift in sentiment.

Crude Oil: Recovery May See Sellers Emerge At 95.00

Gold Resumes Descent As USD Bulls Return, Crude Oil Lacking Fuel

Daily Chart - Created Using FXCM Marketscope 2.0

GOLD TECHNICAL ANALYSIS

A Harami pattern has emerged for gold which awaits confirmation from a successive up period before suggesting the potential for a corrective bounce. This leaves risks skewed to the downside while sub 1,280. An eventual descent on the 1,241 floor remains a possibility. However, a multi-month low for the ATR warrants some skepticism over a sustained decline, given anemic volatility readings generally do not support breakouts.

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

Gold: Downside Risks Remain While Sub 1,280

Gold Resumes Descent As USD Bulls Return, Crude Oil Lacking Fuel

Daily Chart - Created Using FXCM Marketscope 2.0

SILVER TECHNICAL ANALYSIS

A descending trendline on the daily continues to keep silver in check as the precious metal descends towards the 19.00 target. However, signs of hesitation from the bears are emerging. This is made evident by the ensemble of Dojis on the daily and fading momentum reflected by the Rate of Change indicator. Yet in the absence of outright bullish reversal patterns the immediate risk remains to the downside.

Silver: Slowly Marching On $19.00 Target

Gold Resumes Descent As USD Bulls Return, Crude Oil Lacking Fuel

Daily Chart - Created Using FXCM Marketscope 2.0

COPPER TECHNICAL ANALYSIS

Copper has vaulted over the critical 3.19 hurdle which may open the door to a retest of the base metal’s recent highs. The reversal follows a Bullish Engulfing formation which helped to signal a shift in sentiment for the commodity.

Copper: Sentiment Shifts As Hurdle Cleared

Gold Resumes Descent As USD Bulls Return, Crude Oil Lacking Fuel

Daily Chart - Created Using FXCM Marketscope 2.0

PALLADIUM TECHNICAL ANALYSIS

Palldium’s core uptrend remains intact following a rebound from the 200 SMA and 861 barrier. This casts the spotlight back to the metal’s recent highs at the critical 900 ceiling. A break below the ascending trend channel would be required to warn of a top.

Palladium: Rebounds With Core Uptrend Intact

Gold Resumes Descent As USD Bulls Return, Crude Oil Lacking Fuel

Daily Chart - Created Using FXCM Marketscope 2.0

PLATINUM TECHNICAL ANALYSIS

An absence of bullish reversal signals and presence of a sustained downtrend for Platinum may yield further declines for the commodity. A daily close below the 1,424 floor opens a knock on the 1,395 barrier. However, after ten straight days of declines a corrective bounce seems overdue at this point. A more sustained recovery would require a leap over the descending trendline.

Platinum: Targeting 1,395 With Bearish Signals Intact

Gold Resumes Descent As USD Bulls Return, Crude Oil Lacking Fuel

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

News & Analysis at your fingertips.