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.



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

Live Webinar

Live Webinar Events


Economic Calendar

Economic Calendar Events

Free Trading Guides
Please try again
Oil - US Crude
Wall Street
More View more
Real Time News
  • MACD who? The Moving Average Convergence Divergence (MACD) is a technical indicator which simply measures the relationship of exponential moving averages (EMA). Find out how you can incorporate MACD into your trading strategy here:
  • Looking for a new way to trade reversals? One of the most used reversal candle patterns is known as the Harami. Like most candlestick formation patterns, the Harami tells a story about sentiment in the market. Get better with trading reversals here:
  • Long wick candles are recurrent within the forex market. This makes understanding the meaning behind these candles invaluable to any trader to comprehend the market dynamics during a specific period. Learn about the importance of extended wicks here:
  • Safe haven stocks also allow traders to diversify their portfolio and reduce risk. Learn if safe-haven stocks are made for you here:
  • 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:
  • but the next major point in my view to monitor will be 52.76 - at least in the short term.
  • #Brent having broken above the pre-OPEC drop off at 45.51 is a huge deal considering it failed to crack resistance there in August (leading to the invalidation of "uptrend 2") and the psychological significance of that level
  • The New Zealand Dollar looks poised to extend its push higher against its haven-associated counterparts on robust economic data and a less dovish stance from the RBNZ. Get your $NZD market update from @DanielGMoss here:
  • It seems the markets are riding high, but risk is always lurking around the corner. Consider your escape plan before you find yourself in collapsing market. What are the top havens for different conditions in 2020? Find out from @JohnKicklighter here:
  • The Swiss Franc may continue higher against the US Dollar as technical pressure favors USD/CHF bears..Get your $USDCHF market update from @FxWestwater here:
Gold in Favor as ECB Sparks Easing Cycle; Oil, Copper Steady with Stocks

Gold in Favor as ECB Sparks Easing Cycle; Oil, Copper Steady with Stocks

2015-10-23 06:27:00
Nathalie Huynh,

Talking Points:

  • Risk-buying after ECB’s signal of stimulus is offset somewhat by strong USD
  • Oil steadied together with equities rally in Asia
  • Gold rose on dovish expectation for upcoming central bank meetings
  • Copper found support from data and risk sentiment

Gold extended higher in Asia trade as the market continued to digest Draghi’s comments at press conference following European Central Bank’s meeting overnight. Hints of further stimulus to come at the bank’s December 3 meeting and lack of confidence on inflation – a main target of ECB – spelled dovish to onlookers.

With this, the ECB has potentially started an easing cycle among central banks, including lowered expectations for rate hike by the Fed and Bank of England. Pressure is mounting on the Bank of Japan, Swiss National Bank, and the Reserve Bank of Australia to ease in tandem.

The episode sent EUR plunging with the second highest trading volume in four years, while US dollar was heavily bought. Effect to commodities has been rather mixed with a higher USD offsetting risk-buying interests.

As usual, prospects of central bank’s easing (or a delay of tightening) revives interests in gold as competition with yield-bearing assets relaxes. Gold prices halted the week-long decline to head up toward 61.8% Fibonacci at 1173.2, although gains are offset somewhat by a rally in the US dollar. Looking ahead, market interests should support the downside, if not boosting upside gains.

Oil gained on a second day on the back of good US economic data and risk-buying following ECB’s dovish message. Initial jobless claims lingered near a 42-year low last week, while Existing home sales rose 4.7 percent from last month, well exceeding 1.5 percent forecasted.

Nevertheless oil failed to break above a resistance level at 45.72 during the Asian session. Repeated failures to breach may lead to oil being range-bound for the rest of this week.

Copperwas the only major commodity that fell in the aftermath of ECB. It sets to end at the deepest loss in four weeks, given ample supply and persistent losses in the metal complex. Copper traded sideways during Asia session with a downside bias and an intraday support at 2.3710.

Support to copper emerged as US existing home sales bounced back sharply to 4.7 percent in September from negative 4.8 percent in August. This has yet filtered into global copper prices, yet copper traded on the Shanghai futures exchange already rose nearly 1 percent today.

GOLD TECHNICAL ANALYSIS – Gold remained stuck in the range 1163.4 – 1169 that has held for two days. An upside bias is emerging and prices lingered near resistance level during Asia trade. There is still no directional signal and range trading likely prevails coming into next week.

Gold in Favor as ECB Sparks Easing Cycle; Oil, Copper Steady with Stocks

15-minute Chart - Created Using FXCM Marketscope

COPPER TECHNICAL ANALYSIS – Copper tested the 2.3740 intraday support level three times so far today. In the event of a break, next support will be at 2.3575. The daily chart shows copper on a third day of higher moves so the bulls are still at an advantage. The clearer signs of an upturn will be a clean break above resistance and 23.6% Fibo at 2.3775.

Gold in Favor as ECB Sparks Easing Cycle; Oil, Copper Steady with Stocks

15-minute Chart - Created Using FXCM Marketscope

CRUDE OIL TECHNICAL ANALYSIS WTI oil is on a second day of gain although it failed to breach above a resistance at 45.72. On the downside, it formed a double dip at 44.90 on October 21 and 22, which is acting as a firm support level. If no new macro indicators emerge, prices may remain stuck within this narrow range. The bears should be cautious now that prices break away from the 3-day downturn.

Gold in Favor as ECB Sparks Easing Cycle; Oil, Copper Steady with Stocks

15-minute Chart - Created Using FXCM Marketscope

--- Written by Nathalie Huynh, Currency Strategist for

Contact and follow Nathalie on Twitter: @nathuynh

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