Daily Commodity Outlook, June 4 2020

<p><span>Asian shares were mixed on Thursday as the global bull run eased. U.S. equity futures slipped and U.S. Treasuries retained declines as investors turned away from safe havens after the ADP job report of the past month printed better than expected. Today the focus will be on the ECB, which is expected to boost its rescue program on Thursday. It has been the first time to see Europe combine fiscal and monetary stimulus since the establishment of the ECB and the market is showing optimism over the stimulus plan. </span></p>
<p><span>The dollar rebounded from its weakest level since early March as the global stock bull run eased. The Trump administration is suspending passenger flights to the U.S. by Chinese airlines, saying it was retaliating after Beijing barred American carriers from re-entering China amid escalating tensions between the two nations. Meanwhile, on the data front, private-sector employment shed a total of 2.76 million jobs in May,</span> <span>which was well below forecasts – a loss of 8.66 million. This good labour report could relieve USD of some bearish pressure.</span></p>
<p><span>Copper prices slipped from nearly a 3 months high hit earlier in the session, as investors turn cautious about demand recovery in top consumer China. The recent rally in copper prices have been supported by solid consumption from China’s infrastructure and construction sectors, and hopes for a demand recovery as several major economies eased lockdown measures and moved towards reopening of their economies. However, investors remain cautious as other sectors’ demand look stagnated, especially in home appliances where exports markets account for a large share of orders.</span></p>
<p><span>Gold tumbled more than 2% as investors grew optimistic of a faster recovery from a coronavirus-driven economic slump, with investors largely overlooking civil unrest in the United States. Elsewhere, sentiments were also bolstered by data showing U.S. private payrolls fell short of expectations in May, suggesting layoffs were abating as businesses reopened. Meanwhile, data from Institute for Supply Management showed U.S. services industry activity pushed off an 11-year low in May.</span></p>
<p><span>Earlier this morning, the world saw oil prices slipping just 1 day before the proposed OPEC+ meeting. People in the know reported that both Saudi Arabia and Russia’s patience with Iraq has run dry. It seems that the 3rd biggest member of the coalition is looking to renege on its commitments. From Iraq’s point of view, the recent production cuts are already painful to bear. With a supposed 1 month extension of another production cut would cost the country much. In line with the drop in oil price, the CAD followed in the weakness of oil prices causing sideways movement in the USDCAD.</p>
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<p><b>Technical &amp; Trade views</b></p>
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<p><b>USDCAD (</b><b>Intraday bias: bullish above 1.3482)<img class="aligncenter size-large wp-image-44733" src="http://blog.tickmill.com/wp-content/uploads/2020/06/usdcad-3-1024×526.png" alt="" width="1024" height="526" srcset="https://blog.tickmill.com/wp-content/uploads/2020/06/usdcad-3-1024×526.png 1024w, https://blog.tickmill.com/wp-content/uploads/2020/06/usdcad-3-300×154.png 300w, https://blog.tickmill.com/wp-content/uploads/2020/06/usdcad-3-768×394.png 768w, https://blog.tickmill.com/wp-content/uploads/2020/06/usdcad-3.png 1110w" sizes="(max-width: 1024px) 100vw, 1024px" /><br />
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<p><span>We turned bullish as price is bouncing from our 1st support  where the 100% fibonacci extension is. Price is likely to bounce here towards our 1st resistance where the 38.2% fibonacci retracement is. Stochastic also shows upside pressure.</span></p>
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<p><b>UKOIL (</b><b>Intraday bias:Bearish below 39.90)<img class="aligncenter size-large wp-image-44734" src="http://blog.tickmill.com/wp-content/uploads/2020/06/ukoil-3-1024×490.png" alt="" width="1024" height="490" srcset="https://blog.tickmill.com/wp-content/uploads/2020/06/ukoil-3-1024×490.png 1024w, https://blog.tickmill.com/wp-content/uploads/2020/06/ukoil-3-300×144.png 300w, https://blog.tickmill.com/wp-content/uploads/2020/06/ukoil-3-768×368.png 768w, https://blog.tickmill.com/wp-content/uploads/2020/06/ukoil-3.png 1115w" sizes="(max-width: 1024px) 100vw, 1024px" /><br />
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<p><span>Oil prices drifted sideways and broke below ascending trendline support (now resistance). With price now below moving average and MACD looking to cross below 0, a short term drop below 39.40 towards 1st support at 38.26 is expected. Bearish view will remain intact as long as price is below 1st resistance at 39.90.</span></p>
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<p><b>XAUUSD ( </b><b>Intraday bias: bearish below 1716.118)<br />
<img class="aligncenter size-large wp-image-44735" src="http://blog.tickmill.com/wp-content/uploads/2020/06/xauusd-3-1024×497.png" alt="" width="1024" height="497" srcset="https://blog.tickmill.com/wp-content/uploads/2020/06/xauusd-3-1024×497.png 1024w, https://blog.tickmill.com/wp-content/uploads/2020/06/xauusd-3-300×146.png 300w, https://blog.tickmill.com/wp-content/uploads/2020/06/xauusd-3-768×373.png 768w, https://blog.tickmill.com/wp-content/uploads/2020/06/xauusd-3.png 1110w" sizes="(max-width: 1024px) 100vw, 1024px" /><br />
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<p><span>Price is approaching our resistance in line with our 161.8% fibonacci extension, 50% fibonacci retracement and horizontal overlap resistance where we could see a drop below this level to our first support level. Ichimoku cloud is showing signs of bearish pressure in line with our bearish bias.</span></p>
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<p><b>XCUUSD ( </b><b>Intraday bias: bullish above 2.46398)<br />
<img class="aligncenter size-large wp-image-44736" src="http://blog.tickmill.com/wp-content/uploads/2020/06/xcuusd-3-1024×532.png" alt="" width="1024" height="532" srcset="https://blog.tickmill.com/wp-content/uploads/2020/06/xcuusd-3-1024×532.png 1024w, https://blog.tickmill.com/wp-content/uploads/2020/06/xcuusd-3-300×156.png 300w, https://blog.tickmill.com/wp-content/uploads/2020/06/xcuusd-3-768×399.png 768w, https://blog.tickmill.com/wp-content/uploads/2020/06/xcuusd-3.png 1110w" sizes="(max-width: 1024px) 100vw, 1024px" /><br />
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<p><span>Price is approaching our first support, in line with our 127.2% fibonacci extension, 23.6% fibonacci retracement and horizontal overlap support where we could see a bounce above this level to our first resistance level. 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-june-4-2020/">Daily Commodity Outlook, June 4 2020</a> appeared first on <a rel="nofollow" href="https://blog.tickmill.com">Tickmill</a>.</p>