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
Bullish
Oil - US Crude
Mixed
Wall Street
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
Gold
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
GBP/USD
Mixed
USD/JPY
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
More View more
Real Time News
  • The trio of central banks overseeing the commodity currencies have already cut their main rates to all-time lows. Get your market update from @CVecchioFX here: https://t.co/OSUXrN5P3j https://t.co/Cxt86jl28N
  • The Japanese Yen fell for a third consecutive week with price testing resistance into June open. Here are the levels that matter on the $USDJPY weekly technical chart. Get your #currencies market update from @MBForex here: https://t.co/1QPXP0g7Ew https://t.co/WUtXHoRoQX
  • $USDZAR: A rally from here could be an important tell as to whether the level seen as support previously (17.76) will turn into a point of resistance for sellers to lean against. Get your $USDZAR technical analysis from @PaulRobinsonFX here:https://t.co/TNsQ4JJu6E https://t.co/I4yCjs2ja0
  • The US dollar continued to sell-off this week and the greenback’s future will be decided by commentary from the White House and not the Federal Reserve over the coming days and weeks. Get your #currencies market update from @nickcawley1 here: https://t.co/lpHneO3s2h https://t.co/bZ5klohLNd
  • #Gold prices have continued to push higher as expectations have built for global Central Banks to remain very loose and passive with monetary policy for the foreseeable future. Get your $XAUUSD technical analysis from @JStanleyFX here: https://t.co/h5tF3kAZfd https://t.co/VAYy9FGHcQ
  • Major investment bank models have touted USD selling, given the outperformance in US equities relative to its counterparts over the past month. How is this likely to impact the month-end rebalancing? Find out from @JMcQueenFX here:https://t.co/MtNrHmXZpD https://t.co/YvoHlUsdVr
  • U.S. Market Analyst at https://t.co/JsVsSmefgR, Shain Vernier covers - ✔️ Safe haven assets in volatile markets ✔️ Central banks and governments ✔️ How will commodities trade in a recession Only on Trading Global Markets Decoded #podcast. Tune in here: https://t.co/1UmEzEbwiy https://t.co/X15k6b4ZyB
  • The month of May saw equities rise across the board. The #Dow Jones and #DAX 30 will look to hold above nearby support while the #Nasdaq 100 may look to attack all-time highs. Get your #equities market update from @PeterHanksFX here: https://t.co/dQxkG68R0I https://t.co/cgfcOs14qG
  • There is a dramatic departure between yield curve pricing for a recession and other measures of near-term growth; the Q2’20 Atlanta Fed GDPNow is extremely alarming.Get your market update from @CVecchioFX here: https://t.co/eMd3T8EwDO https://t.co/56oUP6we9U
  • The #DAX has now closed the gap from the beginning of March with the index breaking above 61.8% fib at 11592. Get your DAX market update from @JMcQueenFX here: https://t.co/wr67nkxc8z https://t.co/CkxPZn1v3t
Gold Prices Hit 7-Year Top on Corvid Worries Despite China Trade Beats

Gold Prices Hit 7-Year Top on Corvid Worries Despite China Trade Beats

2020-04-14 06:22:00
David Cottle, Analyst
Share:

Gold and Crude Oil Talking Points:

  • Gold prices made new 7-year highs as haven assets continued to find favor
  • Chinese import and export numbers beat gloomy forecasts
  • Crude oil held up, but massive production cuts have not seen an upside range break yet

Gold prices pushed on to new seven-year highs on Tuesday as investors continued to fret about the global economic hit dealt by the coronavirus even as Chinese economic data came in less weakly than expected.

In US Dollar terms exports fell by 6.6% on the year in March, while imports slipped by 0.9%. This was in both cases much less than forecasts which centred on respective falls of 13.9% and 9.8%. While these numbers may suggest that supply chains are holding up better than economists had feared, it remains likely that the full extent of the demand collapse seen in western economies now to varying extents locked down has yet to show up in the data.

The US Congress struggled to come up with a new relief bill on Monday with the Republicans and Democrats in standoff. The budget deficit is now forecast to balloon and anxious eyes are being cast are the dawning corporate earnings season. Meanwhile the International Monetary Fund said on Monday that it would provide immediate relief to 25 member nations under its catastrophe relief program.

Given all of the above a continued strong haven bid into gold is unsurprising and, indeed can be clearly seen. The metal is now at its highest since November 2012, with its all-time peaks now in the bulls’ sights.

Gold BEARISH
Data provided by
of clients are net long. of clients are net short.
Change in Longs Shorts OI
Daily 2% -8% -1%
Weekly 0% -8% -2%
What does it mean for price action?
Get My Guide

Crude oil prices rose as the prospect of reduced US shale-oil output added to the supportive effects of this week’s large production cut from the Organization of Petroleum Exporting Countries and allies including Russia.

The US Energy Administration said that April shale production may well see the biggest falls on record but even with these large prospective reductions in supply prices have failed to surge as investors still face the prospect of even greater falls in demand.

Oil - US Crude MIXED
Data provided by
of clients are net long. of clients are net short.
Change in Longs Shorts OI
Daily -10% 8% -4%
Weekly -9% -13% -10%
What does it mean for price action?
Get My Guide

Gold Price Technical Analysis

Gold Prices, Monthly Chart

Gold prices have seen very sharp April gains as the supportive cocktail of general economic uncertainty and the lower interest rates set in place to deal with it gives the non-yielding metal a broad lift. 2020’s gains have been quite steep, however, and it may be that some consolidation will now be seen before the market can revisit the highs of October 2012 in the $1789/ounce region. As long as this process takes place above the psychologically important $1600 level it seems likely that upward momentum will be maintained.

Crude Oil Technical Analysis

Crude Oil Prices, Daily Chart

Crude oil prices’ inability to break above a narrow daily chart range in the face of supply reductions which would formerly have sent it soaring underlines the perceived economic threat of coronavirus very clearly.

Resistance in the $30/barrel area continues to cap the market while support from last week’s lows in the $28.51 region continues to hold. It seems certain that the direction in which this range eventually breaks on a daily-closing basis will be instructive, and at the moment a downside test looks more likely, perhaps as soon as this week. However the uncommitted may want to wait for confirmation of this.

Commodity Trading Resources

--- Written by David Cottle, DailyFX Research

Follow David on Twitter@DavidCottleFX or use the Comments section below to get in touch!

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

DISCLOSURES

News & Analysis at your fingertips.