The last few days brought us a correction on the USD. In theory, a weaker dollar should support commodities but that’s just an expected reaction that won’t necessarily be applicable in these volatile times that we are living now. As if the corona-crash wasn’t enough, we also have a price war in the oil market which is a bearish brother-in-arms of the industry’s crippling demand. As you can see, the oil market macro-environment is rather pessimistic.
The technical situation does not look any better. The price bounced from 20 USD/bbl. and tested the 28 USD/bbl, the level is the closest resistance before going into a downswing. Most recently, the price was creating a pennant and broke its lower line. That breakout is a negative factor and hints at further slide south.
A weaker USD along with global turmoil help gold. Technically, gold found local support, slightly bellow the 160a 0 USD/oz level and will most likely use it to make an attempt at new mid-term highs. The sentiment here is definitely positive.
Let’s also look at the S&P 500, where the last day brought us a decisive bearish victory. The price failed to continue a bearish attack and failed to break the 23.6% Fibonnaci and the resistance on the 2550 points. We also managed to break the short-term up trendline coming from the latest correction. As long as we stay below the green area, the sentiment will remain negative.
- English (UK)
- English (India)
- English (Canada)
- English (Australia)
- English (South Africa)
- English (Philippines)
- English (Nigeria)
- Deutsch
- Español (España)
- Español (México)
- Français
- Italiano
- Nederlands
- Português (Portugal)
- Polski
- Português (Brasil)
- Русский
- Türkçe
- العربية
- Ελληνικά
- Svenska
- Suomi
- עברית
- 日本語
- 한국어
- 简体中文
- 繁體中文
- Bahasa Indonesia
- Bahasa Melayu
- ไทย
- Tiếng Việt
- हिंदी
Is The Correction On The USD Going To Help Commodities?
Published 03/26/2020, 06:14 AM
Is The Correction On The USD Going To Help Commodities?
Latest comments
The virus reality data vs the modeling is a game changer. Things happen so fast now that the news cycle, last weeks.. instead of years. Who remembers much about that little dust up about impeachment.
So , it is imperative that the USA reopens asap. The entire commodity sector will benefit with the will of American economy being set loose. The financial accommodations can be rocket fuel with the cuffs taken off. I sense that this will happen soon, and money is to be made.
Lets get to it.
Cheers.
Install Our App
Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.