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
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
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
Bullish
Gold
Bearish
GBP/USD
Mixed
USD/JPY
Mixed
More View more
Real Time News
  • $USDJPY Daily Pivot Points: S3: 104.74 S2: 105.3 S1: 105.52 R1: 106.08 R2: 106.42 R3: 106.98 https://www.dailyfx.com/pivot-points?ref=SubNav?utm_source=Twitter&utm_medium=DFXGeneric&utm_campaign=twr
  • White House Chief of Staff Meadows says stimulus discussions will last as long as needed tonight - BBG
  • Forex Update: As of 20:00, these are your best and worst performers based on the London trading schedule: 🇦🇺AUD: 0.61% 🇳🇿NZD: 0.60% 🇬🇧GBP: 0.21% 🇯🇵JPY: 0.05% 🇨🇭CHF: -0.14% 🇨🇦CAD: -0.34% View the performance of all markets via https://www.dailyfx.com/forex-rates#currencies https://t.co/tnW4af9aVr
  • Commodities Update: As of 20:00, these are your best and worst performers based on the London trading schedule: Silver: 7.24% Gold: 1.33% Oil - US Crude: 0.23% View the performance of all markets via https://www.dailyfx.com/forex-rates#commodities https://t.co/YbvtFCzKwH
  • US moves to tighten disclosure requirements for Chinese listed securities on US exchanges - BBG
  • IG Client Sentiment Update: Our data shows the vast majority of traders in Ripple are long at 95.93%, while traders in US 500 are at opposite extremes with 76.34%. See the summary chart below and full details and charts on DailyFX: https://www.dailyfx.com/sentiment https://t.co/2L02UUzPZP
  • The S&P 500 continues its move higher on Thursday with investor hopes for fiscal stimulus rise as the stalemate in congress endures. Now within 2% of its prior all-time high,Get your S&P500 market update from @FxWestwater here:https://t.co/LQvQw51Vcy https://t.co/ttKETOBHeU
  • #AUDUSD boldly broke above a 2019 resistance range, but negative RSI divergence shows upside momentum is slowing. Do you think the pair will capitulate or break past the upcoming ceiling at 0.7295? https://t.co/FV64qtuXXL
  • Trump says he is reimposing tariffs on Canadian aluminum- BBG
  • US Equity Update (Thursday Close): $DJI +0.68% $SPX +0.64% $NDX +1.27% $RUT -0.10% $VIX -1.65%
Crude Oil Prices Slip With Stocks. China Plans Tighter Grip on Hong Kong

Crude Oil Prices Slip With Stocks. China Plans Tighter Grip on Hong Kong

2020-05-22 05:13:00
David Cottle, Analyst
Share:

Crude Oil and Gold Talking Points:

  • Crude oil prices wilted as risk appetite did the same
  • China wants to impose more stringent control over Hong Kong, with the latter’s future as a financial center perhaps in the balance
  • Gold prices edged up but the market looks leery of pressing the upside

Crude oil prices wilted in Asia on Friday despite a strong start as news that China will impose more stringent control over Hong Kong saw a broad retreat for market risk appetite.

Beijing plans laws to ban secession, sedition and foreign interference in the former British territory where pro-democracy protests have been frequent. The proposed laws may have huge consequence for Hong Kong’s future as a financial centre, with much dependent on what stance the US takes.

The news saw stocks in Hong Kong fall by more than 4%, with a knock-on effect for all growth correlated assets, including oil.

Prices had been supported initially by reports that the gradual emergence from Covid lockdowns around the world had indeed seen higher demand. Traffic flows had reportedly rebounded in both Berlin and Tokyo according to data prepared for Reuters, while easing restrictions have also propped up US gasoline demand as the annual ‘driving season’ looms.

China also reportedly announced that it will not set a Gross Domestic Product growth target this year, following the Covid outbreak, with trade tensions between it and the US also apparently on the rise again.

Oil - US Crude MIXED
Data provided by
of clients are net long. of clients are net short.
Change in Longs Shorts OI
Daily 27% -18% -1%
Weekly -28% 22% -9%
What does it mean for price action?
Get My Guide

Perhaps surprisingly gold prices eked out only very modest gains despite clearly growing risk aversion.

The metal climbed as high as $1730/ounce in the Singapore morning session but failed to hold most of those gains as the session went on. However, the broad backdrop of limping global growth and ultra-loose monetary policy remains in place and likely to support the market even at its current altitude.

Crude Oil Prices Technical Analysis

US Crude Oil Prices, Daily Chart

US crude oil prices’ sharp uptrend remains in place but is clearly being tested as it has not been for nearly two weeks previously. It now offers support at $31.12/barrel, very close to the current market. Still, a weekly close below the line may not be as bearish as it might seem. The market has after all risen sharply since April and is perhaps overdue for some consolidation. There’s clear support from mid-May in the psychologically important $25 area, but a retracement that far would be surprising. Expect consolidation well above that point.

Gold Prices Technical Analysis

Gold Prices, Daily Chart

Gold prices remain well within their daily-chart uptrend channel but there does seem to be some reluctance to push on into a resistance zone now just above the market and derived from highs last seen in 2012. It guards the way back to the all-time peaks of that year. The market shows some sign of exhaustion and it will be interesting to see if it can end this week, and then this month, with that uptrend channel intact.

Given the fundamental backdrop there seems little reason to expect a major price reversal, but some retracement toward the $1600 level may be seen, again consolidatively, should the channel break. It currently offers support at $1697.50.

Gold BEARISH
Data provided by
of clients are net long. of clients are net short.
Change in Longs Shorts OI
Daily 13% -2% 8%
Weekly 17% 12% 15%
What does it mean for price action?
Get My Guide

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.

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.