Daily Commodity Coverage: April 3, 2020
<p><b>USD/CAD</b></p>
<p><img class="aligncenter size-large wp-image-41140" src="http://blog.tickmill.com/wp-content/uploads/2020/04/z-1024×455.png" alt="" width="1024" height="455" srcset="https://blog.tickmill.com/wp-content/uploads/2020/04/z-1024×455.png 1024w, https://blog.tickmill.com/wp-content/uploads/2020/04/z-300×133.png 300w, https://blog.tickmill.com/wp-content/uploads/2020/04/z-768×341.png 768w, https://blog.tickmill.com/wp-content/uploads/2020/04/z.png 1272w" sizes="(max-width: 1024px) 100vw, 1024px" /></p>
<p><b>What happened previously?</b></p>
<p><span>The USD sideways after the sluggish weekly jobless claims number. Initial jobless claims surged to more 6.6 million last week, the Labor Department said Thursday. That brings the two-week total to about 10 million due to the coronavirus-induced economic shutdown. USD somehow was not affected that much, while investors take the unemployment pain as a short-term strike. CAD also benefited from crude oil rally that happened last night after rumors of a possible supply cut. USDCAD is likely to consolidate in ranges ahead of Friday’s Nonfarm payroll number.</span></p>
<p><b>What can we expect? </b></p>
<p><span>We are seeing price to test 1st resistance at 1.42677 and Stochastics is also reaching resistance level. 1st resistance level is a confluence level of horizontal swing high resistance and 76.4% Fibonacci retracement. </span></p>
<p> </p>
<p><b>UKOIL</b></p>
<p> </p>
<p><img class="aligncenter size-large wp-image-41141" src="http://blog.tickmill.com/wp-content/uploads/2020/04/a-1024×471.png" alt="" width="1024" height="471" srcset="https://blog.tickmill.com/wp-content/uploads/2020/04/a-1024×471.png 1024w, https://blog.tickmill.com/wp-content/uploads/2020/04/a-300×138.png 300w, https://blog.tickmill.com/wp-content/uploads/2020/04/a-768×354.png 768w, https://blog.tickmill.com/wp-content/uploads/2020/04/a.png 1264w" sizes="(max-width: 1024px) 100vw, 1024px" /></p>
<p><b>What happened previously?</b></p>
<p><span>Oil surged after President tweeted that he was trying to get the world to cut oil production by 10 million barrels a day in an effort to end a market-share war. An OPEC+ delegate familiar with the conversations similarly sadi Saudi Arabia and Russia had yet to agree to production cuts, let alone the size. Crude oil pared some gains after the rally. Crude oil is likely to range and stay mixed, awaiting more progress from Russia and Saudi Arabia negotiation.</span></p>
<p><b>What can we expect?</b></p>
<p><span>We remain bearish for today’s trading. We are seeing the price to retest the first resistance at ]31.00 and is likely to drop from there. Stochastics are reaching a new high at 94.01 which is a sign of bearishness. 1st resistance level happens to be where the 50% Fibonacci retracement lines up with recent horizontal swing high. </span></p>
<p><b>XAUUSD</b></p>
<p><img class="aligncenter size-large wp-image-41142" src="http://blog.tickmill.com/wp-content/uploads/2020/04/w-1024×464.png" alt="" width="1024" height="464" srcset="https://blog.tickmill.com/wp-content/uploads/2020/04/w-1024×464.png 1024w, https://blog.tickmill.com/wp-content/uploads/2020/04/w-300×136.png 300w, https://blog.tickmill.com/wp-content/uploads/2020/04/w-768×348.png 768w, https://blog.tickmill.com/wp-content/uploads/2020/04/w.png 1267w" sizes="(max-width: 1024px) 100vw, 1024px" /></p>
<p><b>What happened previously?</b></p>
<p><span>Gold held an advance as investors weighted the far-reaching impact of the spread of the coronavirus, including the latest surge in U.S. Jobless claims. One million people are infected across the world, a milestone reached just four months after Wuhan’s outbreak. At the same time, Switzerland’s major gold refineries are in talks with local authorities about restarting production next week. Gold may see potential weakness if the supply shortage is eased. </span></p>
<p> </p>
<p><b>What can we expect?</b></p>
<p><span>We turn bearish as the price is approaching 1st resistance at 1641.66 and is likely to drop from there. Stochastics is also showing signs of oversold reaching a level of 98.16 for a drop to happen. The 1st resistance happens to be where 76.4% Fibonacci retracement and horizontal swing low line up well and could serve as a key resistance level. </span></p>
<p> </p>
<p><b>XCUUSD</b></p>
<p><img class="aligncenter size-large wp-image-41143" src="http://blog.tickmill.com/wp-content/uploads/2020/04/s-1024×463.png" alt="" width="1024" height="463" srcset="https://blog.tickmill.com/wp-content/uploads/2020/04/s-1024×463.png 1024w, https://blog.tickmill.com/wp-content/uploads/2020/04/s-300×136.png 300w, https://blog.tickmill.com/wp-content/uploads/2020/04/s-768×347.png 768w, https://blog.tickmill.com/wp-content/uploads/2020/04/s.png 1275w" sizes="(max-width: 1024px) 100vw, 1024px" /></p>
<p><b>What happened previously?</b></p>
<p><span>China’s 2nd-largest copper smelter- Tongling Metals Group, shut the Mirador mine in disrupts mine operations in South America. The timing of the mine’s reopening will depend on the local virus situation. This could curb the supply side of the copper and serves as a booster to recent sluggish Copper price. </span></p>
<p><b>What can we expect?</b></p>
<p><span>Our turn bearish as price is approaching 1st resistance. Until the price breaks above 1st resistance at 2.2451, we stay bearish. 1st resistance level happens to be where the 50% Fibonacci retracement and horizontal swing low support line up. Price is likely to drop from here given the Stochastics also showing signs of overbought</span></p>
<p>The post <a rel="nofollow" href="https://blog.tickmill.com/tech-analysis/daily-commodity-coverage-april-3-2020/">Daily Commodity Coverage: April 3, 2020</a> appeared first on <a rel="nofollow" href="https://blog.tickmill.com">Tickmill</a>.</p>
Leave a Comment