Daily Commodity Outlook, July 9 2020

<p><span>Asian stocks went higher on Thursday as investors continued to embrace the global rally. Chinese stocks went higher to extend an eight-day winning streak. S&amp;P 500 futures were flat after the gauge climbed to a one-month high on Wednesday night.</span></p>
<p><span>USD dropped amid the global equity rally as investors have a firm belief in the stimulus plan that central banks are implementing. Tonight we will have the latest weekly unemployment number, which is likely to show a further pickup in the labour market. If this number continues to surprise to the upside, USD could drop further.</span></p>
<p><span>Copper prices hit its 16-month high as the bulls remain firmly in control, with strong demand from the Chinese market. Meanwhile, supply disruption from Chile, one of the world’s largest producers of copper, further supported the rally in prices. In line with fundamentals, prices are facing bullish pressure as it holds firmly above our ascending trend line.  </span></p>
<p><span>Gold prices rallied to their highest levels in nine years, as the uncertain macroeconomic landscape and growing concerns that the second wave of pandemic could hinder a swift economic recovery buoyed demand for the precious metal. In line with fundamentals, prices are holding firmly above our ascending trend line where we maintain our bullish outlook for the safe-haven asset.</span></p>
<p><span>Oil held steady around $41 a barrel as reports of stockpile at key storage hub of Cushing expanded for the first time since early May. Adding to the gloom, multiple US states recorded some of the biggest daily gains in coronavirus cases and deaths. With other countries like Australia and Iran reporting a spike in cases as well, the demand for oil looks set to be bleak. The CAD weakened in line with Oil. However it still outperformed the USD as the US Dollar slips to 3 week low ahead of Jobs data release.</span></p>
<p><b>Technical &amp; Trade views</b></p>
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<p><b>USDCAD (</b><b>Intraday bias: bearish below 1.3523)<img class="aligncenter size-large wp-image-46793" src="http://blog.tickmill.com/wp-content/uploads/2020/07/usdcad-5-1024×529.png" alt="" width="1024" height="529" srcset="https://blog.tickmill.com/wp-content/uploads/2020/07/usdcad-5-1024×529.png 1024w, https://blog.tickmill.com/wp-content/uploads/2020/07/usdcad-5-300×155.png 300w, https://blog.tickmill.com/wp-content/uploads/2020/07/usdcad-5-768×396.png 768w, https://blog.tickmill.com/wp-content/uploads/2020/07/usdcad-5.png 1110w" sizes="(max-width: 1024px) 100vw, 1024px" /><br />
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<p><span>We turned bearish as price is approaching 1st resistance where the horizontal overlap is and is likely to reverse off the level towards 1st support where the 61.8 fib extension is. Ichimoku also indicates bearishness.</span></p>
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<p><b>UKOIL (</b><b>Intraday bias: Neutral between 43.44 and 43.14)<img class="aligncenter size-large wp-image-46794" src="http://blog.tickmill.com/wp-content/uploads/2020/07/ukoil-5-1024×489.png" alt="" width="1024" height="489" srcset="https://blog.tickmill.com/wp-content/uploads/2020/07/ukoil-5-1024×489.png 1024w, https://blog.tickmill.com/wp-content/uploads/2020/07/ukoil-5-300×143.png 300w, https://blog.tickmill.com/wp-content/uploads/2020/07/ukoil-5-768×367.png 768w, https://blog.tickmill.com/wp-content/uploads/2020/07/ukoil-5.png 1115w" sizes="(max-width: 1024px) 100vw, 1024px" /><br />
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<p><span>Oil price holding between 1st resistance at 43.44 and 1st support at 43.14. With technical indicators giving mixed signals and there are no good entries for now, we prefer to remain neutral. A break below 1st support should see price drop towards 2nd support at 42.82. Otherwise, a break above 1st resistance at 43.44 should see price rise towards 2nd resistance at 43.68.</span></p>
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<p><b>XAUUSD (</b><b>Intraday bias: Bullish above 1813.47) <img class="aligncenter size-large wp-image-46795" src="http://blog.tickmill.com/wp-content/uploads/2020/07/xauusd-5-1024×529.png" alt="" width="1024" height="529" srcset="https://blog.tickmill.com/wp-content/uploads/2020/07/xauusd-5-1024×529.png 1024w, https://blog.tickmill.com/wp-content/uploads/2020/07/xauusd-5-300×155.png 300w, https://blog.tickmill.com/wp-content/uploads/2020/07/xauusd-5-768×396.png 768w, https://blog.tickmill.com/wp-content/uploads/2020/07/xauusd-5.png 1110w" sizes="(max-width: 1024px) 100vw, 1024px" /><br />
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<p><span>Price is facing bullish pressure from our ascending trend line and a break above our upside confirmation level at 1813.47 could provide the bullish acceleration to our first resistance level. Ichimoku cloud is showing signs of bullish pressure as well. </span></p>
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<p><b>XCUUSD ( </b><b>Intraday bias: Bullish above 2.81716)<img class="aligncenter size-large wp-image-46796" src="http://blog.tickmill.com/wp-content/uploads/2020/07/xcuusd-5-1024×497.png" alt="" width="1024" height="497" srcset="https://blog.tickmill.com/wp-content/uploads/2020/07/xcuusd-5-1024×497.png 1024w, https://blog.tickmill.com/wp-content/uploads/2020/07/xcuusd-5-300×146.png 300w, https://blog.tickmill.com/wp-content/uploads/2020/07/xcuusd-5-768×373.png 768w, https://blog.tickmill.com/wp-content/uploads/2020/07/xcuusd-5.png 1110w" sizes="(max-width: 1024px) 100vw, 1024px" /><br />
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<p><span>Price is facing bullish pressure from our ascending trend line and we remain bullish above our first support level at 2.81716, in line with our 61.8% fibonacci extension and 61.8% fibonacci extension. Ichimoku cloud is showing signs of bullish pressure in line with our bullish bias. </span></p>
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<p>The post <a rel="nofollow" href="https://blog.tickmill.com/tech-analysis/daily-commodity-outlook-july-9-2020/">Daily Commodity Outlook, July 9 2020</a> appeared first on <a rel="nofollow" href="https://blog.tickmill.com">Tickmill</a>.</p>