Daily Commodity Coverage: April 6, 2020

<p><b>USD/CAD</b></p>
<p><img class="aligncenter size-large wp-image-41241" src="http://blog.tickmill.com/wp-content/uploads/2020/04/Z-1-1024×464.png" alt="" width="1024" height="464" srcset="https://blog.tickmill.com/wp-content/uploads/2020/04/Z-1-1024×464.png 1024w, https://blog.tickmill.com/wp-content/uploads/2020/04/Z-1-300×136.png 300w, https://blog.tickmill.com/wp-content/uploads/2020/04/Z-1-768×348.png 768w, https://blog.tickmill.com/wp-content/uploads/2020/04/Z-1.png 1269w" sizes="(max-width: 1024px) 100vw, 1024px" /></p>
<p><b>What happened previously?</b></p>
<p><span>Nonfarm Payrolls (NFP) in the US declined by 701,000 in March, the data published by the US Bureau of Labor Statistics showed on Friday. This reading followed February’s increase of 275,000 (revised from 273,000) and missed the market expectation of -100,000 by a wide margin. The U.S. stock index closed in red on Friday USD with Dow Jones down 1.69%, but U.S. 10 Year Treasury yield is not much affected. DXY was not much affected by the news since much of the unemployment pain is expected. On the other side, oil prices dropped during overnight trading on Sunday after OPEC+ announced it was delaying its meeting initially scheduled for Monday, stoking fears on the Street that a production cut might face hurdles.  The landscape looks quite mixed on Monday morning and is lacking clear direction. </span></p>
<p><b>What can we expect? </b></p>
<p><span>We are seeing price to test 1st resistance at 1.42677 and Stochastics is also reaching resistance level. 1st resistance level is a confluence level of horizontal swing high resistance and 76.4% Fibonacci retracement. If price breaks and closes above this level, we might turn bullish from bearish since it opens up more upside. </span></p>
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<p><b>UKOIL</b></p>
<p><img class="aligncenter size-large wp-image-41242" src="http://blog.tickmill.com/wp-content/uploads/2020/04/Z1-1024×463.png" alt="" width="1024" height="463" srcset="https://blog.tickmill.com/wp-content/uploads/2020/04/Z1-1024×463.png 1024w, https://blog.tickmill.com/wp-content/uploads/2020/04/Z1-300×136.png 300w, https://blog.tickmill.com/wp-content/uploads/2020/04/Z1-768×347.png 768w, https://blog.tickmill.com/wp-content/uploads/2020/04/Z1.png 1260w" sizes="(max-width: 1024px) 100vw, 1024px" /></p>
<p><b>What happened previously?</b></p>
<p><span>Oil surged last week — WTI and Brent are both coming off their best week on record — as Saudi Arabia called a meeting between between OPEC and its allies, known as OPEC+, signalling there could be progress on a production cut. But oil prices opened low on Monday morning after OPEC+ announced it was delaying its meeting initially scheduled for Monday, stoking fears on the Street that a production cut might face hurdles.</span></p>
<p><b>What can we expect?</b></p>
<p><span>We remain bullish for today’s trading.  We are seeing the price to retest the first support at 30.61 and is likely to bounce from there. Ichimoku cloud is also showing signs of bullishness. 1st support level happens to be where the 50% Fibonacci retracement lines up with 61.8% Fibonacci extension.</span></p>
<p><b>XAUUSD</b></p>
<p><img class="aligncenter size-large wp-image-41243" src="http://blog.tickmill.com/wp-content/uploads/2020/04/Z3-1024×464.png" alt="" width="1024" height="464" srcset="https://blog.tickmill.com/wp-content/uploads/2020/04/Z3-1024×464.png 1024w, https://blog.tickmill.com/wp-content/uploads/2020/04/Z3-300×136.png 300w, https://blog.tickmill.com/wp-content/uploads/2020/04/Z3-768×348.png 768w, https://blog.tickmill.com/wp-content/uploads/2020/04/Z3.png 1272w" sizes="(max-width: 1024px) 100vw, 1024px" /></p>
<p><b>What happened previously?</b></p>
<p><span>Gold is stabilizing on Monday after advanced on Friday after the sluggish Nonfarm payroll number. Dollar rose after President Trump said he saw signs that the coronavirus outbreak was beginning to stabilize or level off in the U.S..Gold is likely to drop upon a strengthening USD. We remain bearish fundamentally for XAUUSD.</span></p>
<p><b>What can we expect?</b></p>
<p><span>We remain bearish technically as the price is approaching 1st resistance at 1644.22 and is likely to drop from there. Stochastics is also showing signs of oversold reaching a level of 97.29 for a drop to happen. The 1st resistance happens to be where 76.4% Fibonacci retracement and horizontal swing low line up well and could serve as a key resistance level. </span></p>
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<p><b>XCUUSD</b></p>
<p><img class="aligncenter size-large wp-image-41245" src="http://blog.tickmill.com/wp-content/uploads/2020/04/Z4-1024×460.png" alt="" width="1024" height="460" srcset="https://blog.tickmill.com/wp-content/uploads/2020/04/Z4-1024×460.png 1024w, https://blog.tickmill.com/wp-content/uploads/2020/04/Z4-300×135.png 300w, https://blog.tickmill.com/wp-content/uploads/2020/04/Z4-768×345.png 768w, https://blog.tickmill.com/wp-content/uploads/2020/04/Z4.png 1266w" sizes="(max-width: 1024px) 100vw, 1024px" /></p>
<p><b>What happened previously?</b></p>
<p><span>Market shows great relief after President Trump and Vice President Pence said they saw signs that the coronavirus outbreak was beginning to stabilize or level off in the U.S. Asian equity market rebounded on Monday morning, showing some optimism over the situation. But the optimism is not firm enough as the tunnel is still long although we have seen some light in the tunnel. </span></p>
<p><b>What can we expect?</b></p>
<p><span>We remain bearish as long as price stays below 1st resistance at 2.24386. 1st resistance level happens to be where the 50% Fibonacci retracement and horizontal swing high resistance line up. Price is likely to drop  from here given that the Stochastics is also showing signs of oversold. </span></p>
<p>The post <a rel="nofollow" href="https://blog.tickmill.com/tech-analysis/daily-commodity-coverage-april-6-2020/">Daily Commodity Coverage: April 6, 2020</a> appeared first on <a rel="nofollow" href="https://blog.tickmill.com">Tickmill</a>.</p>