Daily Commodity Outlook, July 15 2020
<p><span>Asian stocks and U.S. equity futures climbed Wednesday amid optimism that progress is being made in developing a defense against the coronavirus. Moderna Inc.’s Covid-19 vaccine produced antibodies to the coronavirus in all patients tested in an initial safety trial, federal researchers said, clearing an important milestone as the U.S. continues to grapple with a surge in new infections.</span></p>
<p><span>USD retreated as the market cheered the good news from the vaccine. Meantime, President Donald Trump said he issued an order to end Hong Kong’s special status with the U.S. and signed legislation that would sanction Chinese officials responsible for cracking down on political dissent in Hong Kong. The geopolitical tensions are again on the radar.</span></p>
<p><span>Copper prices retreated from its recent highs after tensions escalated between US and China, as the United States rejected China’s disputed claims in most of the South China Sea. However, the supply disruption that we are facing from Chile, one of the world’s top producers of Copper would limit the downside in prices as long as the demand from China remains firm. </span></p>
<p><span>Gold rallied higher and held firmly above the key $1,800 level, as concerns over the surge in the number of Covid-19 cases along with escalating Sino-US tensions buoyed demand for the safe-haven asset. In line with the fundamentals, prices are also holding firmly above our long term ascending trend line and we maintain our bullish outlook. </span></p>
<p><span>Oil price pared it’s 2 days losses as OPEC+ continues to seek further output cuts from laggard members. Further there was a report that pointed out a drop in the US crude stockpiles. However observers are saying that the further supply cuts has already been priced in and the markets would not be moving as much upon official news release. In line with oil prices, the CAD edged higher as well. However the CAD is now approaching a strong support level against the USD.</span></p>
<p><b>Technical & Trade views</b></p>
<p><b>USDCAD (</b><b>Intraday bias: bullish above 1.3578)</b></p>
<p><img class="aligncenter size-large wp-image-47086" src="http://blog.tickmill.com/wp-content/uploads/2020/07/usdcad-8-1024×538.png" alt="" width="1024" height="538" srcset="https://blog.tickmill.com/wp-content/uploads/2020/07/usdcad-8-1024×538.png 1024w, https://blog.tickmill.com/wp-content/uploads/2020/07/usdcad-8-300×158.png 300w, https://blog.tickmill.com/wp-content/uploads/2020/07/usdcad-8-768×404.png 768w, https://blog.tickmill.com/wp-content/uploads/2020/07/usdcad-8.png 1111w" sizes="(max-width: 1024px) 100vw, 1024px" /></p>
<p><span>We turned bullish as price is approaching 1st support where the horizontal overlap support is and is likely to bounce off the level towards 1st resistance where the horizontal swing high is. Stochastics also indicates bullishness.</span></p>
<p><b>UKOIL (</b><b>Intraday bias: Bearish below 43.18)<br />
<img class="aligncenter size-large wp-image-47088" src="http://blog.tickmill.com/wp-content/uploads/2020/07/ukoil-8-1024×494.png" alt="" width="1024" height="494" srcset="https://blog.tickmill.com/wp-content/uploads/2020/07/ukoil-8-1024×494.png 1024w, https://blog.tickmill.com/wp-content/uploads/2020/07/ukoil-8-300×145.png 300w, https://blog.tickmill.com/wp-content/uploads/2020/07/ukoil-8-768×371.png 768w, https://blog.tickmill.com/wp-content/uploads/2020/07/ukoil-8.png 1113w" sizes="(max-width: 1024px) 100vw, 1024px" /><br />
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<p><span>Oil testing descending trendline resistance. Stochastic indicator testing resistance as well. A short term pull back below 1st resistance at 43.18 towards 1st support at 42.70 could be possible.</span></p>
<p><b></b><b>XAUUSD (</b><b>Intraday bias: Bullish above 1789.21) </b></p>
<p><b><img class="aligncenter size-large wp-image-47089" src="http://blog.tickmill.com/wp-content/uploads/2020/07/xauusd-8-1024×532.png" alt="" width="1024" height="532" srcset="https://blog.tickmill.com/wp-content/uploads/2020/07/xauusd-8-1024×532.png 1024w, https://blog.tickmill.com/wp-content/uploads/2020/07/xauusd-8-300×156.png 300w, https://blog.tickmill.com/wp-content/uploads/2020/07/xauusd-8-768×399.png 768w, https://blog.tickmill.com/wp-content/uploads/2020/07/xauusd-8.png 1110w" sizes="(max-width: 1024px) 100vw, 1024px" /><br />
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<p><span>Price is approaching our first support level, in line with our ascending trend line and 38.2% fibonacci retracement and a break above our upside confirmation level at 1813.47 could provide the bullish acceleration to our first resistance level. Ichimoku cloud is showing signs of bullish pressure as well, in line with our bullish bias. </span></p>
<p><b></b><b>XCUUSD (</b><b>Intraday bias: Bullish above 2.91873)<img class="aligncenter size-large wp-image-47090" src="http://blog.tickmill.com/wp-content/uploads/2020/07/xcuusd-8-1024×494.png" alt="" width="1024" height="494" srcset="https://blog.tickmill.com/wp-content/uploads/2020/07/xcuusd-8-1024×494.png 1024w, https://blog.tickmill.com/wp-content/uploads/2020/07/xcuusd-8-300×145.png 300w, https://blog.tickmill.com/wp-content/uploads/2020/07/xcuusd-8-768×370.png 768w, https://blog.tickmill.com/wp-content/uploads/2020/07/xcuusd-8.png 1110w" sizes="(max-width: 1024px) 100vw, 1024px" /><br />
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<p><span>Price is facing bullish pressure from our intermediate support level in line with our ascending trend line and 61.8% fibonacci retracement where we could see a bounce above this level to our first resistance level. Stochastic is approaching our support as well, where we could see a bounce above this level.</span></p>
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<p>The post <a rel="nofollow" href="https://blog.tickmill.com/tech-analysis/daily-commodity-outlook-july-15-2020/">Daily Commodity Outlook, July 15 2020</a> appeared first on <a rel="nofollow" href="https://blog.tickmill.com">Tickmill</a>.</p>
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