Daily Commodity Coverage: April 9, 2020
<p><b>USD/CAD</b></p>
<p><img class="aligncenter size-large wp-image-41501" src="http://blog.tickmill.com/wp-content/uploads/2020/04/a1-1-1024×463.png" alt="" width="1024" height="463" srcset="https://blog.tickmill.com/wp-content/uploads/2020/04/a1-1-1024×463.png 1024w, https://blog.tickmill.com/wp-content/uploads/2020/04/a1-1-300×136.png 300w, https://blog.tickmill.com/wp-content/uploads/2020/04/a1-1-768×347.png 768w, https://blog.tickmill.com/wp-content/uploads/2020/04/a1-1.png 1055w" sizes="(max-width: 1024px) 100vw, 1024px" /></p>
<p><b>What happened previously?</b></p>
<p><span>The USD ended Wednesday flat due to uncertainty whether the coronavirus pandemic may soon peak or not. Today the focus of the market is on the release of U.S. initial weekly jobless claims due later today. Meanwhile, CAD is also awaiting important announcement from OPEC+ meeting due later today. There’s currently optimism over Russia and Saudi Arabia reaching a production cut, but with the U.S. not yet promising anything, the two could back off anytime. The market is quite mixed given important announcements and economic numbers ahead. </span></p>
<p><b>What can we expect? </b></p>
<p><span>We are seeing the price to test the upside confirmation at 1.4071. The upside confirmation is a confluence level of horizontal swing low and 100% Fibonacci extension. If price breaks above the upside confirmation, it will open up a bigger bounce towards 1st resistance which happens to be where the 100% fibonacci extension and 76.4% fibonacci retracement line up well. </span></p>
<p><b>UKOIL</b></p>
<p><img class="aligncenter size-large wp-image-41502" src="http://blog.tickmill.com/wp-content/uploads/2020/04/z2-1024×471.png" alt="" width="1024" height="471" srcset="https://blog.tickmill.com/wp-content/uploads/2020/04/z2-1024×471.png 1024w, https://blog.tickmill.com/wp-content/uploads/2020/04/z2-300×138.png 300w, https://blog.tickmill.com/wp-content/uploads/2020/04/z2-768×353.png 768w, https://blog.tickmill.com/wp-content/uploads/2020/04/z2.png 1063w" sizes="(max-width: 1024px) 100vw, 1024px" /></p>
<p> </p>
<p><b>What happened previously?</b></p>
<p><span>Oil extended gains as the world’s top oil producers appeared to be moving closer to a deal to curb output in the face of deepening demand destruction. On Wednesday, Russia said it is ready to cut by 1.63 million barrels a day, or about 15% of its total output. The OPEC+ meeting to be held later on Thursday will discuss a “massive output reduction, which may reach 10 million barrels a day”, according to the energy minister of Algeria. Market is showing optimism that this output reduction is likely to be reached while Russia remains skeptical about the U.S. commitment in production cut. </span></p>
<p> </p>
<p><b>What can we expect?</b></p>
<p><span>We turn neutral for today’s trading. We are seeing the price ranging between 1st resistance and 1st support. 1st support happens to be where the 50% Fibonacci retracement and 61.8% Fibonacci extension line up well.!st resistance is where the 78.6% and previous swing high are. Currently the Ichimoku cloud is also sending mixed signals where price is likely to cross below the cloud. Price is likely to consolidate and trade in range ahead of the OPEC+ meeting later today.</span></p>
<p><b>XAUUSD</b></p>
<p><img class="aligncenter size-large wp-image-41503" src="http://blog.tickmill.com/wp-content/uploads/2020/04/q1-1-1024×467.png" alt="" width="1024" height="467" srcset="https://blog.tickmill.com/wp-content/uploads/2020/04/q1-1-1024×467.png 1024w, https://blog.tickmill.com/wp-content/uploads/2020/04/q1-1-300×137.png 300w, https://blog.tickmill.com/wp-content/uploads/2020/04/q1-1-768×350.png 768w, https://blog.tickmill.com/wp-content/uploads/2020/04/q1-1.png 1054w" sizes="(max-width: 1024px) 100vw, 1024px" /></p>
<p><b>What happened previously?</b></p>
<p><span>Gold headed for a weekly advance as the haven asset continued to be in the bids, with investors weighing the uncertainties as coronavirus continues to jump into headlines every day. Global cases topped 1.5 million, less than a week after surpassing the 1 million mark. The uncertainties have pushed up the gold although there’s fears that increasing spread between the futures and spot could indicate another liquidity crunch. Generally, demand for safe havens is still there as long as the number of coronavirus keeps going up at fast speed. </span></p>
<p><b>What can we expect?</b></p>
<p><span>We remain bullish technically as the price is approaching 1st support at 1641.82 and is likely to bounce from there.Ichimoku cloud is showing signs of oversold. The 1st support happens to be where 38.2% Fibonacci retracement and horizontal overlap support line up well and could serve as a key support level. If price ever breaks below this level, it will open up a bigger drop from there.</span></p>
<p><b>XCUUSD</b></p>
<p><img class="aligncenter size-large wp-image-41504" src="http://blog.tickmill.com/wp-content/uploads/2020/04/s1-1024×453.png" alt="" width="1024" height="453" srcset="https://blog.tickmill.com/wp-content/uploads/2020/04/s1-1024×453.png 1024w, https://blog.tickmill.com/wp-content/uploads/2020/04/s1-300×133.png 300w, https://blog.tickmill.com/wp-content/uploads/2020/04/s1-768×340.png 768w, https://blog.tickmill.com/wp-content/uploads/2020/04/s1.png 1064w" sizes="(max-width: 1024px) 100vw, 1024px" /></p>
<p><b>What happened previously?</b></p>
<p><span>Market’s risk appetite stabilized on Thursday morning after U.S. S&P 500 jumped for another day on Wednesday night. U.S. cases rose 9.6% from the day before to 419,975. This rate is lower than the average growth rate of 11% over the past week. Market is still weighing whether the growth of cases has peaked or not. With Wuhan back to work, 90% of the companies are back to normal. As long as the optimism persists, XCU could see more upside.</span></p>
<p> </p>
<p><b>What can we expect?</b></p>
<p><span>Our call is still valid. We remain bullish as price broke above our upside confirmation at 2.24386, which serves as a key support for price. The upside confirmation level happens to be where the 50% Fibonacci retracement and previous swing high resistance line up. Price is likely to bounce further from here given that the Ichimoku is also showing signs of bullishness.</span></p>
<p>The post <a rel="nofollow" href="https://blog.tickmill.com/tech-analysis/daily-commodity-coverage-april-9-2020/">Daily Commodity Coverage: April 9, 2020</a> appeared first on <a rel="nofollow" href="https://blog.tickmill.com">Tickmill</a>.</p>
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