Daily Market Outlook, April 21, 2020

<p><b>The market remains risk-off amid the shock of WTI turning negative overnight.</b><span> Asian stocks edged lower in Tuesday morning for a second day. South Korea stocks and the won slide after CNN reported that North Korea is in grave danger after surgery. U.S. Treasuries were little changed. The euro held steady as caution set in before data on German economic sentiment later Tuesday and a meeting of European Union officials on Thursday to discuss the bloc&#8217;s response to the economic chaos caused by the coronavirus pandemic. The New Zealand dollar was poised to extend gains as investors continue to cheer the country&#8217;s decision to ease next week ease some of the world&#8217;s strictest lockdown measures taken to stop the spread of the novel virus. </span></p>
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<p><b>Oil futures rose after the shocking tumble below zero over the night. </b><span>The May contract ticked back into positive territory and June contracts stabilized at about $22 a barrel. The May WTI crude contract CL.1, -103.72% </span><a href="https://www.marketwatch.com/investing/future/CLK20?mod=MW_story_quote"><span>CLK20, -103.72%</span></a> <a href="https://www.marketwatch.com/story/us-oils-may-contract-skids-about-20-at-nadir-as-crudes-woes-continue-2020-04-19?mod=article_inline"><span>closed Monday</span></a><span> at -$37.63 a barrel, a one-day drop of $55.90, or 306%. As the May contract expired at Tuesday’s close, traders with long positions scrambled to get out amid a fear that it would be difficult to find a place to park physical oil amid rising stockpiles of the crude oil.</span><b> It is not necessarily an accurate reflection of the supply and demand in the market but the oversupply issues are still lingering and concerning the market.</b></p>
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<p><b>The dollar is still on the surge amid the risk aversion, which was exacerbated by collapsing crude oil prices</b><span>. The market is showing doubts about whether reopening U.S. in any near-term is actionable. Reported cases of the virus have crossed 2.33 million globally and 159,818 people have died, according to a Reuters tally as of Sunday. </span><b>Gold prices slipped on Tuesday, having risen as much as 1% in the previous session as the dollar firmed, although losses were capped by a fragile equities market.</b></p>
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<p><b>Copper prices dropped on Monday after the news that Glencore will reverse its earlier decision to shutter its Zambia subsidiary Mopani Copper Mines (MCM) if it reaches an agreement with the Zambian government, </b><span>bringing hopes that the demand of copper could increase. This might bring some short-term headwinds, but long-term wise, copper has more upside to go after China cut loan rates on Monday. </span></p>
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<p><b>Technical &amp; Trade views</b></p>
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<p><b>USDCAD (</b><b>Intraday bias: bullish above 1.4165 neutral below )</b></p>
<p><img class="aligncenter size-large wp-image-42140" src="http://blog.tickmill.com/wp-content/uploads/2020/04/Screenshot-2-1-1024×466.png" alt="" width="1024" height="466" srcset="https://blog.tickmill.com/wp-content/uploads/2020/04/Screenshot-2-1-1024×466.png 1024w, https://blog.tickmill.com/wp-content/uploads/2020/04/Screenshot-2-1-300×136.png 300w, https://blog.tickmill.com/wp-content/uploads/2020/04/Screenshot-2-1-768×349.png 768w, https://blog.tickmill.com/wp-content/uploads/2020/04/Screenshot-2-1.png 1055w" sizes="(max-width: 1024px) 100vw, 1024px" /></p>
<p><span>We turned neutral as the price is near the upside confirmation,, which happens to be a confluence level of the 38.2% fibonacci retracement  and horizontal swing high. if price breaks above the upside confirmation, price is likely to bounce towards 1st resistance. </span></p>
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<p><b>UKOIL (</b><b>Intraday bias: bullish above 25.06)</b></p>
<p><img class="aligncenter size-large wp-image-42141" src="http://blog.tickmill.com/wp-content/uploads/2020/04/Screenshot-3-1-1024×464.png" alt="" width="1024" height="464" srcset="https://blog.tickmill.com/wp-content/uploads/2020/04/Screenshot-3-1-1024×464.png 1024w, https://blog.tickmill.com/wp-content/uploads/2020/04/Screenshot-3-1-300×136.png 300w, https://blog.tickmill.com/wp-content/uploads/2020/04/Screenshot-3-1-768×348.png 768w, https://blog.tickmill.com/wp-content/uploads/2020/04/Screenshot-3-1.png 1055w" sizes="(max-width: 1024px) 100vw, 1024px" /></p>
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<p><span>We turned bullish as price approached our 1st support. The 1st support happens to be a confluence level of the 61.8% fibonacci extension  and 76.4% Fibonacci retracement. Price is likely to bounce towards 1st resistance at 29.01 where the 38.2% fibonacci retracement is.</span></p>
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<p><b>XAUUSD ( </b><b>Intraday bias: bullish above 1642.36) </b></p>
<p><img class="aligncenter size-large wp-image-42142" src="http://blog.tickmill.com/wp-content/uploads/2020/04/Screenshot-4-1-1024×469.png" alt="" width="1024" height="469" srcset="https://blog.tickmill.com/wp-content/uploads/2020/04/Screenshot-4-1-1024×469.png 1024w, https://blog.tickmill.com/wp-content/uploads/2020/04/Screenshot-4-1-300×137.png 300w, https://blog.tickmill.com/wp-content/uploads/2020/04/Screenshot-4-1-768×352.png 768w, https://blog.tickmill.com/wp-content/uploads/2020/04/Screenshot-4-1.png 1063w" sizes="(max-width: 1024px) 100vw, 1024px" /></p>
<p><span>We remain bullish technically as the price is approaching 1st support at 1642.36  towards 1st resistance is where the 100% fibonacci extension is. The 1st support happens to be where 38.2% fibonacci retracement is and could serve as a key support level. </span></p>
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<p><b>XCUUSD ( </b><b>Intraday bias: Bullish above 2.2438)</b></p>
<p><img class="aligncenter size-large wp-image-42144" src="http://blog.tickmill.com/wp-content/uploads/2020/04/Screenshot-5-1024×468.png" alt="" width="1024" height="468" srcset="https://blog.tickmill.com/wp-content/uploads/2020/04/Screenshot-5-1024×468.png 1024w, https://blog.tickmill.com/wp-content/uploads/2020/04/Screenshot-5-300×137.png 300w, https://blog.tickmill.com/wp-content/uploads/2020/04/Screenshot-5-768×351.png 768w, https://blog.tickmill.com/wp-content/uploads/2020/04/Screenshot-5.png 1070w" sizes="(max-width: 1024px) 100vw, 1024px" /></p>
<p><span>We turned bullish as price is approaching 1st support where the 50% fibonacci retracement and horizontal overlap support line up.  Price is likely to bounce off 1st support towards 1st resistance.</span></p>
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