Daily Commodity Outlook, June 9 2020
<p><span>Asian stocks turned mixed after another strong rally in the U.S. session. Investors are weighing whether the global rally may be excessive given still-poor economic conditions. Treasuries and the yen are on the rise. The market is quite mixed or even skewed to the negative side as the rich valuation is capping investors’ confidence.</span></p>
<p><span>The dollar is poised for a ninth straight day of declines, while ten-year Treasuries yield is going lower. This week’s focus will be on the Federal Reserve policy decision due on Wednesday. Officials are expected to leave rates above zero and re-commit to using their full range of tools. If the Fed is open to more stimulus to save the economy, we might see this benign market sentiment to continue</span></p>
<p><span>Copper prices retreated from a 3 month high after data showed top consumer China’s exports weakened in May, which saw unwrought copper imports in May fell 5.5% from the previous month. Three-month copper on the London Metal Exchange (LME) fell 1.2% to $5,624 a tonne by 0124 GMT, while the most-traded July copper contract on the Shanghai Futures Exchange (ShFE) rose 1.1% to 45,480 yuan ($6,423.00) a tonne, tracking gains in London in the previous session. </span></p>
<p><span>Gold prices rallied higher, breaking its daily downtrend. Looking ahead, the macroeconomic backdrop with fiscal and monetary stimulus injections by central banks along with economic damage as a result of the Covid-19 pandemic could provide support for the gold rally, as fears of a protracted recovery may heighten the appeal of the precious metal. </span></p>
<p><span>Oil</span><span> is trading lower but very rangy into Asia open despite OPEC extending Q2 production cuts and addressing non-compliance. There is a good chance profit-taking will be undertaken after the strong run into the meeting, especially with news of the start-up in Libya’s el-Shahara field after the most recent ceasefire.Full recovery to early March levels will need continued supply discipline, demand recovery and time to work off inventories and spare capacity.</span></p>
<p><b>Technical & Trade views</b></p>
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<p><b>USDCAD (</b><b>Intraday bias: bullish above 1.3342)<br />
<img class="aligncenter size-large wp-image-44926" src="http://blog.tickmill.com/wp-content/uploads/2020/06/usdcad-6-1024×436.png" alt="" width="1024" height="436" srcset="https://blog.tickmill.com/wp-content/uploads/2020/06/usdcad-6-1024×436.png 1024w, https://blog.tickmill.com/wp-content/uploads/2020/06/usdcad-6-300×128.png 300w, https://blog.tickmill.com/wp-content/uploads/2020/06/usdcad-6-768×327.png 768w, https://blog.tickmill.com/wp-content/uploads/2020/06/usdcad-6.png 1059w" sizes="(max-width: 1024px) 100vw, 1024px" /><br />
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<p><span>We turned bullish as price is bouncing off our 1st support at 1.3342 where the 61.8% fibonacci extension is. Price is likely to bounce further from here towards 1st resistance where the horizontal swing high is. Stochastics also indicates further bullish pressure.</span></p>
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<p><b>UKOIL (</b><b>Intraday bias: bullish above 40.43)</b></p>
<p><b><img class="aligncenter size-large wp-image-44927" src="http://blog.tickmill.com/wp-content/uploads/2020/06/ukoil-6-1024×434.png" alt="" width="1024" height="434" srcset="https://blog.tickmill.com/wp-content/uploads/2020/06/ukoil-6-1024×434.png 1024w, https://blog.tickmill.com/wp-content/uploads/2020/06/ukoil-6-300×127.png 300w, https://blog.tickmill.com/wp-content/uploads/2020/06/ukoil-6-768×326.png 768w, https://blog.tickmill.com/wp-content/uploads/2020/06/ukoil-6.png 1059w" sizes="(max-width: 1024px) 100vw, 1024px" /><br />
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<p><span>We turned bullish as oil price is bouncing off our 1st support at 40.43 where the 61.8% fibonacci retracement is. Price is likely to bounce further from here towards 1st resistance where the horizontal swing high and 61.8% fibonacci extension are. Ichimoku also indicates further bullish pressure.</span></p>
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<p><b>XAUUSD ( </b><b>Intraday bias: Bullish above 1697.414)<br />
<img class="aligncenter size-large wp-image-44928" src="http://blog.tickmill.com/wp-content/uploads/2020/06/xauusd-6-1024×496.png" alt="" width="1024" height="496" srcset="https://blog.tickmill.com/wp-content/uploads/2020/06/xauusd-6-1024×496.png 1024w, https://blog.tickmill.com/wp-content/uploads/2020/06/xauusd-6-300×145.png 300w, https://blog.tickmill.com/wp-content/uploads/2020/06/xauusd-6-768×372.png 768w, https://blog.tickmill.com/wp-content/uploads/2020/06/xauusd-6.png 1057w" sizes="(max-width: 1024px) 100vw, 1024px" /></p>
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<p><span>Price is facing bullish pressure from our first support, in line with our 38.2% retracement and we also saw a breakout of its previous trend line which could provide further upside pressure. Ichimoku cloud and RSI are showing signs of bullish pressure as well, in line with our bullish bias. </span></p>
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<p><b>XCUUSD ( </b><b>Intraday bias: bearish below 2.62953)<br />
<img class="aligncenter size-large wp-image-44929" src="http://blog.tickmill.com/wp-content/uploads/2020/06/xcuusd-6-1024×494.png" alt="" width="1024" height="494" srcset="https://blog.tickmill.com/wp-content/uploads/2020/06/xcuusd-6-1024×494.png 1024w, https://blog.tickmill.com/wp-content/uploads/2020/06/xcuusd-6-300×145.png 300w, https://blog.tickmill.com/wp-content/uploads/2020/06/xcuusd-6-768×371.png 768w, https://blog.tickmill.com/wp-content/uploads/2020/06/xcuusd-6.png 1059w" sizes="(max-width: 1024px) 100vw, 1024px" /><br />
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<p><span>Price is facing bearish pressure from our first resistance, in line with our 200% fibonacci extension, 76.4% fibonacci retracement where we could see a reversal below this level to our first support level. Stochastic is facing bearish pressure from our resistance as well. </span></p>
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<p>The post <a rel="nofollow" href="https://blog.tickmill.com/tech-analysis/daily-commodity-outlook-june-9-2020/">Daily Commodity Outlook, June 9 2020</a> appeared first on <a rel="nofollow" href="https://blog.tickmill.com">Tickmill</a>.</p>
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