Daily Commodity Outlook, June 6 2020

<p><span>Asian stocks went higher on Friday, ready to post the second straight weekly gain, as U.S. and European equity-index futures advanced. The dollar extended its slide for the third week and crude oil climbed. Ten-year Treasury yields held near the highest level since March. The euro earlier surged after the European Central Bank announced a bigger-than-expected boost to its emergency bond-buying program.</span></p>
<p><span>The dollar continued the slide as the global equity bull run continues. Today the market will be focusing on the release of nonfarm payroll numbers.  Wednesday’ s ADP number is giving hope that the labour market in May has seen some pickup as the economies have bottomed in April. ADP private-sector employment shed a total of 2.76 million jobs in May, which was well below forecasts – a loss of 8.66 million. This bullish sentiment on the job report could add on to the global equity rally, thus punishing USD further.</span></p>
<p><span>Copper prices pushed higher, boosted by strong demand from China. The metal, which is used in almost all construction projects and white goods climbed over 20% from its</span> <span>March low on Thursday evening. The rally was supported by strong economic data in the Chinese construction and manufacturing sectors during the second quarter, signaling a sign of recovery in demand for the metal. Looking ahead, the macroeconomic landscape on a bigger picture shows that there could be room for more upside in the long run. That said, we do caution lingering tensions between the US and China which could limit the upside of the metal in the short run. </span></p>
<p><span>Gold prices pared recent losses after a steep decline yesterday as investors awaited the European Central Bank’s (ECB) policy decision where it is expected to announce more stimulus measures. Looking ahead, the bullish longer term view remains intact as the fiscal and monetary stimulus adopted by central banks to combat the economic impact caused by the Covid-19 pandemic could support the gold rally.</span></p>
<p><span>Oil went higher on Friday as OPEC+ is set to extend production cuts to prop up the oil market after a breakthrough in high-stakes negotiations, and the cartel could meet as soon as this weekend to sign off on the deal. The agreement — though still to be ratified — means OPEC+ will extend its record production curbs for another month until the end of July. Although OPEC+ is used to dramatic glitches endangering deals at the last minute, this news still gives investors hopes that crude oil could see further upside. CAD also edged higher alongside the rally in crude oil. </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: bearish below 1.3525)<br />
<img class="aligncenter size-large wp-image-44805" src="http://blog.tickmill.com/wp-content/uploads/2020/06/usdcad-4-1024×426.png" alt="" width="1024" height="426" srcset="https://blog.tickmill.com/wp-content/uploads/2020/06/usdcad-4-1024×426.png 1024w, https://blog.tickmill.com/wp-content/uploads/2020/06/usdcad-4-300×125.png 300w, https://blog.tickmill.com/wp-content/uploads/2020/06/usdcad-4-768×319.png 768w, https://blog.tickmill.com/wp-content/uploads/2020/06/usdcad-4.png 1054w" sizes="(max-width: 1024px) 100vw, 1024px" /><br />
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<p><span>We turned bearish as price is testing our downside confirmation at 1.3525 where the 100% fibonacci extension is. If price could close below the downside confirmation, more downside will be opened up towards 1st support at 1.3316. Ichimoku also indicates further downside pressure.</span></p>
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<p><b>UKOIL (</b><b>Intraday bias: bullish above 40.44)<br />
<img class="aligncenter size-large wp-image-44806" src="http://blog.tickmill.com/wp-content/uploads/2020/06/ukoil-4-1024×447.png" alt="" width="1024" height="447" srcset="https://blog.tickmill.com/wp-content/uploads/2020/06/ukoil-4-1024×447.png 1024w, https://blog.tickmill.com/wp-content/uploads/2020/06/ukoil-4-300×131.png 300w, https://blog.tickmill.com/wp-content/uploads/2020/06/ukoil-4-768×335.png 768w, https://blog.tickmill.com/wp-content/uploads/2020/06/ukoil-4.png 1045w" sizes="(max-width: 1024px) 100vw, 1024px" /><br />
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<p><span>Oil prices drifted sideways and respected the ascending trendline well . If price could break above the upside confirmation at 40.44 where the horizontal swing high is, more upside will be opened up. The Ichimoku cloud is also supporting more upside for Brent oil. </span></p>
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<p><b>XAUUSD ( </b><b>Intraday bias: Bullish above 1705.675) <img class="aligncenter size-large wp-image-44807" src="http://blog.tickmill.com/wp-content/uploads/2020/06/xauusd-4-1024×479.png" alt="" width="1024" height="479" srcset="https://blog.tickmill.com/wp-content/uploads/2020/06/xauusd-4-1024×479.png 1024w, https://blog.tickmill.com/wp-content/uploads/2020/06/xauusd-4-300×140.png 300w, https://blog.tickmill.com/wp-content/uploads/2020/06/xauusd-4-768×359.png 768w, https://blog.tickmill.com/wp-content/uploads/2020/06/xauusd-4.png 1109w" sizes="(max-width: 1024px) 100vw, 1024px" /><br />
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<p><span>Price is approaching support in line with our horizontal overlap support, 100% fibonacci extension and 50% fibonacci retracement. Ichimoku cloud is showing signs of bullish pressure in line with our bullish bias.</span></p>
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<p><b>XCUUSD ( </b><b>Intraday bias: bearish below 2.49462)<img class="aligncenter size-large wp-image-44808" src="http://blog.tickmill.com/wp-content/uploads/2020/06/xcuusd-4-1024×485.png" alt="" width="1024" height="485" srcset="https://blog.tickmill.com/wp-content/uploads/2020/06/xcuusd-4-1024×485.png 1024w, https://blog.tickmill.com/wp-content/uploads/2020/06/xcuusd-4-300×142.png 300w, https://blog.tickmill.com/wp-content/uploads/2020/06/xcuusd-4-768×364.png 768w, https://blog.tickmill.com/wp-content/uploads/2020/06/xcuusd-4.png 1115w" sizes="(max-width: 1024px) 100vw, 1024px" /><br />
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<p><span>Price is facing pressure from our intermediate resistance, in line with our 78.6% fibonacci retracement where we could see a reversal below this level to our first support level. Stochastic is reversing below our resistance level as well. </span></p>
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<p>The post <a rel="nofollow" href="https://blog.tickmill.com/trading-strategies/daily-commodity-outlook-june-6-2020/">Daily Commodity Outlook, June 6 2020</a> appeared first on <a rel="nofollow" href="https://blog.tickmill.com">Tickmill</a>.</p>