Daily Commodity Coverage: April 8, 2020
<p><b>USD/CAD</b></p>
<p><img class="aligncenter size-large wp-image-41434" src="http://blog.tickmill.com/wp-content/uploads/2020/04/1-10-1024×473.png" alt="" width="1024" height="473" srcset="https://blog.tickmill.com/wp-content/uploads/2020/04/1-10-1024×473.png 1024w, https://blog.tickmill.com/wp-content/uploads/2020/04/1-10-300×139.png 300w, https://blog.tickmill.com/wp-content/uploads/2020/04/1-10-768×355.png 768w, https://blog.tickmill.com/wp-content/uploads/2020/04/1-10.png 1057w" sizes="(max-width: 1024px) 100vw, 1024px" /></p>
<p><b>What happened previously?</b></p>
<p><span>Although the spread of the coronavirus is slowing down as most epicenters reported, The U.K. and New York state had their deadliest days since the pandemic began. Italy reported its fewest infections since March 13, and several European nations said they planned to ease restrictions. S&P 500 gave up all its gains in the day, ending 0.2% lower on Tuesday night. USD is likely to strengthen while the market weighs uncertainties. CAD lacks clear directions ahead of Thursday’s OPEC+ meeting. . </span></p>
<p><b>What can we expect? </b></p>
<p><span>We are seeing the price to test 1st support at 1.39455 and Stochastics is also reaching support level. 1st support level is a confluence level of horizontal swing low and 100% Fibonacci extension. Price is likely to bounce from 1st support towards 1st resistance which happens to be where the 100% fiboancci extension and 76.4% fibonacci retracement line up well. </span></p>
<p><b>UKOIL</b></p>
<p><img class="aligncenter size-large wp-image-41435" src="http://blog.tickmill.com/wp-content/uploads/2020/04/2-6-1024×460.png" alt="" width="1024" height="460" srcset="https://blog.tickmill.com/wp-content/uploads/2020/04/2-6-1024×460.png 1024w, https://blog.tickmill.com/wp-content/uploads/2020/04/2-6-300×135.png 300w, https://blog.tickmill.com/wp-content/uploads/2020/04/2-6-768×345.png 768w, https://blog.tickmill.com/wp-content/uploads/2020/04/2-6.png 1058w" sizes="(max-width: 1024px) 100vw, 1024px" /></p>
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<p><b>What happened previously?</b></p>
<p><span>Oil price stabilizes on Wednesday, with investors worrying about the likelihood of an output cut. There are grounds for optimism. The U.S. Energy Information Administration slashed its oil output forecast by almost 10%. It is said that Saudi Arabia and Russia are hammering out terms to a production agreement, with OPEC+ talks planned for Thursday and a G-20 meeting of energy ministers set for Friday. Price is likely to consolidate and lacking clear direction ahead of the significant events tomorrow. </span></p>
<p><b>What can we expect?</b></p>
<p><span>We remain slightly bullish for today’s trading. We are seeing the price approaching 1st support at 31.10. 1st support happens to be where the 50% Fibonacci retracement and 61.8% Fibonacci extension line up well. Currently the Ichimoku cloud is showing that a further pushup is more likely. If price goes up towards 1st resistance, a reversal is likely at our 1st resistance at 35.88. 1st resistance level happens to be where the 78.6% Fibonacci retracement lines up with horizontal swing high.</span></p>
<p> </p>
<p><b>XAUUSD</b></p>
<p><img class="aligncenter size-large wp-image-41436" src="http://blog.tickmill.com/wp-content/uploads/2020/04/3-3-1024×466.png" alt="" width="1024" height="466" srcset="https://blog.tickmill.com/wp-content/uploads/2020/04/3-3-1024×466.png 1024w, https://blog.tickmill.com/wp-content/uploads/2020/04/3-3-300×137.png 300w, https://blog.tickmill.com/wp-content/uploads/2020/04/3-3-768×350.png 768w, https://blog.tickmill.com/wp-content/uploads/2020/04/3-3.png 1065w" sizes="(max-width: 1024px) 100vw, 1024px" /></p>
<p><b>What happened previously?</b></p>
<p><span>Gold dropped as investors saw the price divergence between spot and futures. While price spread widened to $30 on Tuesday and the last time it did so was before the blowout of gold futures in March. The price spread is usually seen as a measure of the cost to swap futures contracts into physical gold. When the spread widened, investors are worried about potential shortages of gold bars in the market, which can cause a liquidity crunch. But the spread is narrowing as the Asia market opens, and gold price is likely to stabilize with the spread returning to normal levels. </span></p>
<p><b>What can we expect?</b></p>
<p><span>We remain bullish technically as the price is approaching 1st support at 1641.82 and is likely to bounce from there.Ichimoku cloud is showing signs of oversold. The 1st support happens to be where 38.2% Fibonacci retracement and horizontal overlap support line up well and could serve as a key support level. If price ever breaks below this level, it will open up a bigger drop from there.</span></p>
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<p><b>XCUUSD</b></p>
<p><img class="aligncenter size-large wp-image-41437" src="http://blog.tickmill.com/wp-content/uploads/2020/04/4-1-1024×457.png" alt="" width="1024" height="457" srcset="https://blog.tickmill.com/wp-content/uploads/2020/04/4-1-1024×457.png 1024w, https://blog.tickmill.com/wp-content/uploads/2020/04/4-1-300×134.png 300w, https://blog.tickmill.com/wp-content/uploads/2020/04/4-1-768×343.png 768w, https://blog.tickmill.com/wp-content/uploads/2020/04/4-1.png 1056w" sizes="(max-width: 1024px) 100vw, 1024px" /></p>
<p><b>What happened previously?</b></p>
<p><span>Market’s risk appetite changed on Wednesday after U.S. S&P 500 eased all its daily gains and ended lower. Investors are weighing a slowing rate of coronavirus spread against more fatalities. XCU dropped as the market showed doubt over yesterday’s risk-on mood. But as most of the epicenters recorded slowing growth of the coronavirus, risk appetite is likely to stabilize and edge higher. </span></p>
<p><b>What can we expect?</b></p>
<p><span>Our call is still valid. We remain bullish as price broke above our upside confirmation at 2.24386, which serves as a key support for price. The upside confirmation level happens to be where the 50% Fibonacci retracement and previous swing high resistance line up. Price is likely to bounce further from here given that the Ichimoku is also showing signs of bullishness.</span></p>
<p>The post <a rel="nofollow" href="https://blog.tickmill.com/tech-analysis/daily-commodity-coverage-april-8-2020/">Daily Commodity Coverage: April 8, 2020</a> appeared first on <a rel="nofollow" href="https://blog.tickmill.com">Tickmill</a>.</p>
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