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
EUR/USD
Bearish
Oil - US Crude
Mixed
Wall Street
Mixed
Gold
Bearish
GBP/USD
Bearish
USD/JPY
Bullish
More View more
Real Time News
  • There is a great debate about which type of analysis is better for a trader. Is it better to be a fundamental trader or a technical trader? Find out here: https://t.co/aVAzFypAg1 https://t.co/7mc19Gxrvm
  • #Gold prices succumbed to selling pressure as the US Dollar soared this past week What is #XAUUSD facing these next few days and can these fundamental forces extend its selloff? Check out my outlook here - https://www.dailyfx.com/forex/fundamental/forecast/weekly/chf/2020/09/26/Gold-Price-Outlook-Rising-US-Dollar-Sinks-XAUUSD-Will-Losses-Extend.html?CHID=9&QPID=917702&utm_source=Twitter&utm_medium=Dubrovsky&utm_campaign=twr https://t.co/gPhy0KoW3W
  • GDP (Gross Domestic Product) economic data is deemed highly significant in the forex market. GDP figures are used as an indicator by fundamentalists to gauge the overall health and potential growth of a country. Learn use GDP data to your advantage here: https://t.co/38gTDnpPbn https://t.co/Xtk5g4JQEB
  • 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/3Wked6GBOp https://t.co/SsUguHB39W
  • Key levels in forex tend to draw attention to traders in the market. These are psychological prices which tie into the human psyche and way of thinking. Learn about psychological levels here:https://t.co/1oygcFMFNs https://t.co/aD1ZWhTWZp
  • The price of #oil may continue to trade in a narrow range as the rebound from the September low ($36.13) appears to have stalled ahead of the month high ($43.43). Get your #commodities update from @DavidJSong here: https://t.co/719LgjFmYG https://t.co/SSoqjONUzA
  • The Australian Dollar may extend its slide lower despite the planned easing of Covid-19 restrictions, as the market continues to price in an RBA rate cut on October 6. Get your #currencies update from @DanielGMoss here: https://t.co/HJpngnerzY https://t.co/g6X8ABQDwY
  • The Indian Rupee may be at risk to the US Dollar as USD/INR attempts to refocus to the upside. This is as the Nifty 50, India’s benchmark stock index, could fall further. Get your USD/INR market update here:https://t.co/ed4QR7QQOn https://t.co/gDWYNtm2UY
  • Technical indicators are chart analysis tools that can help traders better understand and act on price movement. Learn more about the importance of technical analysis here: https://t.co/NpC1D8y4Aa https://t.co/Q7TcbrYXjl
  • #Gold prices have plunged nearly 11% off the record highs with a breakout risking further losses. Here are technical trade levels that matter on the XAU/USD weekly chart. Get your #metals update from @MBForex here: https://t.co/7p3jPx6nQd https://t.co/yxymjCHti6
Crude Oil Prices May See Clashing Cues in Eurozone PMI, EIA Data

Crude Oil Prices May See Clashing Cues in Eurozone PMI, EIA Data

2019-07-24 05:00:00
Ilya Spivak, Head Strategist, APAC
Share:

CRUDE OIL & GOLD TALKING POINTS:

  • Crude oil prices edge up as risk appetite firms in Wall St. trade
  • Eurozone PMI, EIA inventories data may offer divergence cues
  • Gold prices vulnerable as US Dollar attracts liquidity demand

Crude oil prices rose with stocks in risk-on Wall Street trade. Markets cheered after the US Congress reached a debt ceiling deal with the White House, reducing uncertainty and unlocking some capacity for fiscal policy support. Meanwhile, hopes for easing US-China trade war tensions emerged as a meeting between President Trump and key tech executives hinted that lowering sales restrictions on Huawei may be on the table.

The chipper move translated into higher bond yields. The US Dollar had been trending higher since the prior day, and an upshift in rates-based support certainly didn’t hurt. Taken together, that understandably eroded support for non-interest-bearing and anti-fiat assets to the detriment of gold prices.

Crude Oil Prices May See Clashing Cues in Eurozone PMI, EIA Data

Looking ahead, a downbeat set of Eurozone PMI figures might pull the spotlight back to the broader slowdown in global growth, souring sentiment and nudging oil back downward. Losses might be capped if EIA inventory data – where a 4.4-million-barrel drawdown is expected – registers closer to yesterday’s API projection calling for a mammoth 10.96-million-barrel drop.

As for gold, a risk-off shift in the markets’ mood might see lower bond yields competing for influence with a US Dollar buoyed by liquidity demand. If scope for pricing in further Fed easing is as exhausted as it seems, the Greenback might prevail and pressure the yellow metal downward.

Get the latest crude oil and gold forecasts to see what will drive prices in the third quarter!

GOLD TECHNICAL ANALYSIS

Gold prices are probing lower after putting in a Bearish Engulfing candlestick pattern. Negative RSI divergence bolsters the case for a downside scenario. A daily close below trend line support at 1406.62 exposes the July 1 low at 1381.91. Alternatively, an upturn through resistance marked by the 38.2% Fibonacci expansion at 1447.89 targets the 50% level at 1468.27.

Gold price chart - daily

CRUDE OIL TECHNICAL ANALYSIS

Crude oil prices are digesting losses above support at 54.84, with a modest bounce retracing a bit of recently lost ground. Immediate resistance is capped at 58.19, with a break above that opening the door to retest the 60.04-84 area. Renewed selling pressure that pierces support probably targets the 49.41-50.60 zone next.

Crude oil price chart - daily

COMMODITY TRADING RESOURCES

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

To contact Ilya, use the comments section below or @IlyaSpivak on Twitter

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

DISCLOSURES