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
Subscribe
Please try again
EUR/USD
Bearish
Oil - US Crude
Mixed
Wall Street
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
Gold
Mixed
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
Bullish
More View more
Real Time News
  • *Reminder: Weekly Strategy Webinar tomorrow morning at 8:30am EST on DailyFX - https://t.co/lxd5fZnn4H Mid-Week Market Check Up with IG on Wednesday at 9:30am EST - https://t.co/8SFBJxNZrA
  • Do you know how to properly Identify a double top formation? Double tops can enhance technical analysis when trading both forex or stocks, making the pattern highly versatile in nature. Learn more about the double top formation here: https://t.co/t9Flsqcxo9 https://t.co/q0tVjDEr0v
  • The US 10-Year Treasury yield has advanced for four consecutive weeks for the longest such stretch since September 2018. Yet this isn't just a US issue. Yields are up globally. Perhaps most impressive is Japan's 10yr adv... https://t.co/78deo7rOa8 https://t.co/SjXYClItFC
  • Rising Treasury yields inspired a broad selling in global equities last week. The longer-term outlook remains positive however on the back of the reflationary theme, strong earnings and vaccine progress. Get your market update from @margaretyjy here: https://t.co/LLlhEpmJxI https://t.co/bJebULtjLG
  • Dealing with the fear of missing out – or FOMO – is a highly valuable skill for traders. Not only can FOMO have a negative emotional impact, it can cloud judgment and overshadow logic. Learn how you can control FOMO in your trading here: https://t.co/lgDf5cVYOn https://t.co/kuqShllQFp
  • Although the longer-term technical outlook for AUD remains skewed to the topside, recent developments suggest the commodity-sensitive currency could lose ground against USD and JPY. Get your market update from @DanielGMoss here: https://t.co/Rl1h8WdXwp https://t.co/49RKx86FzG
  • ECB policymakers were out in force last week, saying they were watching Eurozone government bond yields, but yields rose anyway, and that’s positive for $EURUSD and the Euro crosses. Get your market update from @MartinSEssex here: https://t.co/nJdh9dA1HM https://t.co/peLh7zTTiz
  • The Federal Reserve System (the Fed) was founded in 1913 by the United States Congress. The Fed’s actions and policies have a major impact on currency value, affecting many trades involving the US Dollar. Learn more about the Fed here: https://t.co/ADSC4sIHrP https://t.co/vs7ypHHwya
  • The GBP rally vs USD came to an abrupt end and reversal; this sets cable up for more selling in the week ahead. Get your market update from @PaulRobinsonFX here: https://t.co/Ee9PSppnd2 https://t.co/uaiCiEHBMs
  • What are some trading takeaways from 2020, as we jump into the new year? Find out with your free guide here: https://t.co/e7udCTJlmf #DailyfxGuides https://t.co/OXUgYIl2ru
Crude Oil Prices May Fall as a Double Top Takes Shape

Crude Oil Prices May Fall as a Double Top Takes Shape

Ilya Spivak, Head Strategist, APAC

GOLD & CRUDE OIL TALKING POINTS:

  • Crude oil may fall if prices make good on double top chart pattern
  • Gold prices languishing as US Dollar strength caps scope for gains
  • Russell 2000 rebalancing may mean volatility across global markets

Crude oil prices managed to recover a bit of lost ground Thursday as markets digested another round of risk-off liquidation. The lead-in selloff was triggered as easing lockdowns bring on a spike in Covid-19 cases, particularly in the US. Gold prices languished as the haven US Dollar held onto gains scored in risk-off trade, capping the appeal of anti-fiat alternatives.

Looking ahead, May’s US personal income and spending data headlines the calendar. A rebound in outlays after April’s double-digit drop is expected to be counterbalanced by the largest monthly earnings drop on record. The Fed’s favored PCE inflation gauge may show that core price growth slowed to 0.9 percent on year. That now seems hardly as influential on Fed policy, and thereby markets, as it has been in the past.

The rebalancing of the Russell 2000 stock index may drive volatility however. The companies making up the small-cap benchmark are relatively more vulnerable to the coronavirus-induced slump than their behemoth counterparts in the Dow or the S&P 500, so a large reallocation whose effects ripple out across global financial markets seems entirely possible.

Oil Forecast
Oil Forecast
Recommended by Ilya Spivak
Get Your Free Oil Forecast
Get My Guide

CRUDE OIL TECHNICAL ANALYSIS

Crude oil prices continue to hint at double top potential as negative RSI divergence speaks to ebbing upside momentum below resistance in the 42.40-43.88 area. Bearish reversal confirmation probably calls for a daily close below support at 34.78. The 27.40-29.11 inflection zone follow thereafter. Alternatively, a push above resistance likely targets $50/bbl next.

Crude Oil Prices May Fall as a Double Top Takes Shape

Crude oil price chart created using TradingView

GOLD TECHNICAL ANALYSIS

Gold prices are digesting losses having slid after the formation of a Bearish Engulfing candlestick pattern. Minor support is at 1759.29, but the true test of sellers’ mettle probably sits in the 1744.58-45.59 area. A daily close below that would double as a breach of trend line support from early June.The range top at 1729.86 follows, now recast as support.Alternatively, reclaiming a hold above 1765.30 eyes 1779.38 next.

Crude Oil Prices May Fall as a Double Top Takes Shape

Gold price chart created using TradingView

Gold Forecast
Gold Forecast
Recommended by Ilya Spivak
Get Your Free Gold Forecast
Get My Guide

COMMODITY TRADING RESOURCES

--- Written by Ilya Spivak, Head APAC Strategist for DailyFX

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