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
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
Bearish
Gold
Bullish
GBP/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
USD/JPY
Mixed
More View more
Real Time News
  • OPEC+ and Monitoring Committee have reportedly prepared output cuts draft - RIA
  • Germany's leading institutes forecast economy shrinking by 9.8% in Q2
  • IG Client Sentiment Update: Our data shows the vast majority of traders in Ripple are long at 95.73%, while traders in US 500 are at opposite extremes with 67.42%. See the summary chart below and full details and charts on DailyFX: https://www.dailyfx.com/sentiment https://t.co/oqtvRiGaLV
  • How can you be a part-time trade? Get your tips on workflow and strategy here with@WVenketas: https://t.co/b8ywNOwF8z #tradingstyle https://t.co/A7Avip2392
  • Commodities Update: As of 07:00, these are your best and worst performers based on the London trading schedule: Oil - US Crude: 4.46% Silver: 0.40% Gold: 0.30% View the performance of all markets via https://www.dailyfx.com/forex-rates#commodities https://t.co/mL9oJiSXyt
  • ECB have told ministers that Eurozone financing needs to address Coronavirus crisis could be up to EUR 1.5trillion, adds that Germany supported measures worth EUR 500bln, according to sources
  • Forex Update: As of 07:00, these are your best and worst performers based on the London trading schedule: 🇯🇵JPY: -0.04% 🇬🇧GBP: -0.19% 🇨🇭CHF: -0.24% 🇨🇦CAD: -0.37% 🇳🇿NZD: -0.41% 🇦🇺AUD: -0.46% View the performance of all markets via https://www.dailyfx.com/forex-rates#currencies https://t.co/VMlmFHZ7Dj
  • Indices Update: As of 07:00, these are your best and worst performers based on the London trading schedule: Wall Street: 0.07% US 500: -0.10% Germany 30: -0.74% France 40: -0.91% View the performance of all markets via https://www.dailyfx.com/forex-rates#indices https://t.co/Rw2FCjzd9s
  • Because you know what you need when global trade has collapsed amid the #coronavirus outbreak? Some new trade barriers to disrupt what little activity there is. #RiskAversion #JPY #USD https://t.co/eEGqAc7UJF
  • BREAKING NEWS: #EU has introduced tariffs of up to 18.9% on stainless steel products from China, Indonesia and Taiwan. Tariffs will remain in place for 6 months. [via BBG] #tradewar
Gold, Crude Oil Prices May Fall on Pre-Positioning for FOMC

Gold, Crude Oil Prices May Fall on Pre-Positioning for FOMC

2016-06-10 04:17:00
Ilya Spivak, Head Strategist, APAC
Share:

Talking Points:

  • Crude oil chart setup hints a top may be forming below $52/bbl
  • Gold prices rise to 3-week high, seemingly exposing May high
  • Corrective flows may bode ill for commodities into the week-end

Crude oil prices declined alongside the S&P 500 as risk appetite softened across the financial markets. Souring sentiment may reflect pre-positioning ahead of next week’s potent news-flow – notably, the FOMC rate decision – with traders using a lull in high-profile event risk to book profits and move toward a more neutral posture. The defensive mood carried over into Asian hours and looks set to continue into the final hour of trading week as stock index futures edge cautiously lower.

A broadly corrective tone may also bode ill for gold prices after the metal hit the highest level in three weeks. The move played out inversely of a sharp drop in front-end breakeven rates, a measure of priced-in inflation expectations derived from the difference in nominal and real bond yields. This dynamic may imply that traders interpreted softening price-growth bets as hinting at a dovish Fed outlook, boosting the relative appeal of non-interest-bearing assets.

Traders are short crude oil by a margin of 2 to 1. Find out here what this hints about the trend!

GOLD TECHNICAL ANALYSISGold prices appear poised to test May swing highs after breaking trend line resistance capping gains over the past month. A break above the 1297.14-1303.62 area marked by the 38.2% Fibonacci expansion and the May 2 high exposes the 50% level at 1327.29. Alternatively, a move back below the 23.6% Fib at 1259.84 targets the 14.6% expansion at 1236.85.

Gold, Crude Oil Prices May Fall on Pre-Positioning for FOMC

CRUDE OIL TECHNICAL ANALYSISCrude oil prices put in a Bearish Engulfing candlestick pattern, hinting a top may be taking shape below the $52/barrel figure. A daily close below the intersection of a rising trend line and the 61.8% Fibonacci expansion at 50.13 exposes the 50% level at 48.77. Alternatively, a push above the 76.4% Fib at 51.82 targets the 100% expansion at 54.54.

Gold, Crude Oil Prices May Fall on Pre-Positioning for FOMC

--- Written by Ilya Spivak, Currency Strategist for DailyFX.com

To receive Ilya's analysis directly via email, please SIGN UP HERE

Contact and follow Ilya on Twitter: @IlyaSpivak

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

DISCLOSURES

News & Analysis at your fingertips.