Daily Commodity Outlook, June 12 2020
<p><span>Asian stocks slumped on Friday after a rout on Wall Street. The U.S. equity market saw some sharp profit-taking sessions on Thursday as the resurgence of the second wave of infections indicates that the stock rally has gone too fast and too much. .U.S. futures rose after the biggest equity selloff on Wall Street since March, as investors gauged the durability of the epic stock rally in face of continuing concerns about the second wave of infections.</span></p>
<p><span>The dollar regained its strength as the risk-off sentiment is dominating the market. Houston, the fourth-largest American city, is indicating signs of resurgence in the number of COVID-19 cases. Still, Treasury Secretary Steven Mnuchin said the U.S. shouldn’t shut down the economy again even if there is another jump in coronavirus cases. The risk aversion is going to buoy the ultimate safe haven as the stock volatility continues.</span></p>
<p><span>Copper prices tumbled lower as investors took a breather after 5 days of consecutive rally, which saw prices their highest level since January in the prior session. While the rally could be supported by a solid consumption recovery as economies reopen with China leading the demand for the metal, investors remain cautious as we witnessed a second wave of risk aversion which could limit the upside for the metal. </span></p>
<p><span>Gold prices slid lower as downward pressure from a stronger dollar countered the rising demand for the safe haven currency as we witnessed a second wave of risk aversion flooding back in the markets, with three major U.S. stock indexes recording over 5% losses on Thursday, posting their worst day since mid-March. Market risk sentiment remains depressed, supported by gloomy economic projections and renewed fears over a second wave in COVID-19 infections. </span></p>
<p><span>Oil prices dropped as investors </span><span>sell-off which signals and reflects the end of the price boost that came from the initial economic re-opening due to an increase in Covid-19 infections in the world’s largest oil consuming economy, the humongous US markets. Negative sentiment has increased specifically around equity and oil markets that have been trading favorably on hopes for an economic recovery.</span></p>
<p> </p>
<p><b>Technical & Trade views</b></p>
<p> </p>
<p><b>USDCAD (</b><b>Intraday bias: neural between 1.3571 and 1.3729)<br />
<img class="aligncenter size-large wp-image-45174" src="http://blog.tickmill.com/wp-content/uploads/2020/06/usdcad-9-1024×495.png" alt="" width="1024" height="495" srcset="https://blog.tickmill.com/wp-content/uploads/2020/06/usdcad-9-1024×495.png 1024w, https://blog.tickmill.com/wp-content/uploads/2020/06/usdcad-9-300×145.png 300w, https://blog.tickmill.com/wp-content/uploads/2020/06/usdcad-9-768×371.png 768w, https://blog.tickmill.com/wp-content/uploads/2020/06/usdcad-9.png 1111w" sizes="(max-width: 1024px) 100vw, 1024px" /><br />
</b></p>
<p><span>We turned neutral as price trades in between 1st support and 1st resistance. If price could make further pushup towards 1st resistance where the 50% fibonacci retracement is, price could see reversal potential there. Ichimoku is also showing further pushup is possible.</span></p>
<p><b></p>
<p></b></p>
<p><b>UKOIL (</b><b>Intraday bias: bullish above 37.10 )<br />
<img class="aligncenter size-large wp-image-45175" src="http://blog.tickmill.com/wp-content/uploads/2020/06/ukoil-9-1024×521.png" alt="" width="1024" height="521" srcset="https://blog.tickmill.com/wp-content/uploads/2020/06/ukoil-9-1024×521.png 1024w, https://blog.tickmill.com/wp-content/uploads/2020/06/ukoil-9-300×153.png 300w, https://blog.tickmill.com/wp-content/uploads/2020/06/ukoil-9-768×391.png 768w, https://blog.tickmill.com/wp-content/uploads/2020/06/ukoil-9.png 1110w" sizes="(max-width: 1024px) 100vw, 1024px" /></p>
<p></b></p>
<p><span>We are seeing a medium-probability bullish scenario and 39.80 marks a potential upside target for longs as well as a platform for shorters to consider. Stochastic is facing upside pressure from our rsupport as well. </span></p>
<p><b> </b></p>
<p><b>XAUUSD ( </b><b>Intraday bias: Bearish below 1728.364)<br />
<img class="aligncenter size-large wp-image-45176" src="http://blog.tickmill.com/wp-content/uploads/2020/06/xauusd-9-1024×482.png" alt="" width="1024" height="482" srcset="https://blog.tickmill.com/wp-content/uploads/2020/06/xauusd-9-1024×482.png 1024w, https://blog.tickmill.com/wp-content/uploads/2020/06/xauusd-9-300×141.png 300w, https://blog.tickmill.com/wp-content/uploads/2020/06/xauusd-9-768×362.png 768w, https://blog.tickmill.com/wp-content/uploads/2020/06/xauusd-9.png 1110w" sizes="(max-width: 1024px) 100vw, 1024px" /></b></p>
<p><span>Price is facing bearish pressure from our first resistance, in line with our descending trend line, 61.8% Fibonacci extension and 88.6% fibonacci retracement where we could see a further drop to our first support level, in line with our 61.8% fibonacci retracement. Stochastic is approaching our resistance as well where we could see a reversal below this level. </span></p>
<p> </p>
<p><b>XCUUSD ( </b><b>Intraday bias: bearish below 2.59330)</b></p>
<p><img class="aligncenter size-large wp-image-45177" src="http://blog.tickmill.com/wp-content/uploads/2020/06/xcuusd-9-1024×523.png" alt="" width="1024" height="523" srcset="https://blog.tickmill.com/wp-content/uploads/2020/06/xcuusd-9-1024×523.png 1024w, https://blog.tickmill.com/wp-content/uploads/2020/06/xcuusd-9-300×153.png 300w, https://blog.tickmill.com/wp-content/uploads/2020/06/xcuusd-9-768×392.png 768w, https://blog.tickmill.com/wp-content/uploads/2020/06/xcuusd-9.png 1109w" sizes="(max-width: 1024px) 100vw, 1024px" /></p>
<p><span>Price reversed nicely from our first resistance, in line with our 200% fibonacci extension, 78.6% fibonacci retracement previously. Current price is testing our intermediate resistance 2.59330 where we remain bearish below this level and could see a further drop to our first support level. Stochastic is facing bearish pressure from our resistance as well. </span></p>
<p> </p>
<p><b> </b></p>
<p>The post <a rel="nofollow" href="https://blog.tickmill.com/tech-analysis/daily-commodity-outlook-june-12-2020/">Daily Commodity Outlook, June 12 2020 </a> appeared first on <a rel="nofollow" href="https://blog.tickmill.com">Tickmill</a>.</p>
Leave a Comment