Daily Commodity Outlook, May 5, 2020

<p><span>The market turns risk-on as the market hopes for further easing of global lockdown. Asian stocks rose along with U.S. equity futures, as several countries moved toward easing lockdowns. The revived Sino-US tensions are still lingering in the market, keeping a lid to risk assets. Elsewhere, AUD and NZD shrugged off recent bearishness on hopes the two countries would soon open their economies to each other as the COVIC-19 situation in both countries seems to be improving.</span></p>
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<p><span>Oil prices were extending gains from last week on Tuesday amid hopes that the worst of the demand destruction in COVIC-19 was over. The front-month contract for Brent oil was last seen up $ 1.08 at USD 28.28/bbl, while the WTI oil was $1.37 higher at USD 21.76/bbl. Coming into May, some supply cuts have kicked in according to the OPEC+ production cut plan, alongside production cuts in the U.S. due to the low prices. While the worst seems to be over, oil is still lacking a major reason to rally especially when political tensions escalate.</span></p>
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<p><span>Gold stabilizes as US-China tensions over Beijing’s mishandling of the coronavirus outbreak continue to weigh on the investors’ sentiment. Moreover, the ongoing recovery in oil prices revived the demand for gold as an inflation hedge. The dollar weakened against most of its Group-of-10 peers as risk sentiment improved after California, the first U.S. state to shut down its economy due to the coronavirus, took steps toward reopening. Gold could go higher on the backdrop of a weaker USD.</span></p>
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<p><span>Copper managed to climb higher on the optimism that more economies are signalling to ease the lockdown. The rising price in crude oil is also helping copper in its recovery in price. Fundamentally, it could take years for demand to get to pre-pandemic levels, but in the near-term, there could be some price support as countries slowly come out of lockdown.</span></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 1.4023)</b></p>
<p><img class="aligncenter size-large wp-image-42907" src="http://blog.tickmill.com/wp-content/uploads/2020/05/Screenshot-3-1024×467.png" alt="" width="1024" height="467" srcset="https://blog.tickmill.com/wp-content/uploads/2020/05/Screenshot-3-1024×467.png 1024w, https://blog.tickmill.com/wp-content/uploads/2020/05/Screenshot-3-300×137.png 300w, https://blog.tickmill.com/wp-content/uploads/2020/05/Screenshot-3-768×350.png 768w, https://blog.tickmill.com/wp-content/uploads/2020/05/Screenshot-3.png 1053w" sizes="(max-width: 1024px) 100vw, 1024px" /></p>
<p><span>We remain bullish as  price is likely to bounce off 1st support, which happens to be previous horizontal pullback support. Price is likely to go higher towards 1st resistance at 1.4247  where the previous swing high and 50% fibonacci retracement are.</span></p>
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<p><b>UKOIL (</b><b>Intraday bias: bearish below 29.19)</b></p>
<p><img class="aligncenter size-large wp-image-42908" src="http://blog.tickmill.com/wp-content/uploads/2020/05/Screenshot-1024×463.png" alt="" width="1024" height="463" srcset="https://blog.tickmill.com/wp-content/uploads/2020/05/Screenshot-1024×463.png 1024w, https://blog.tickmill.com/wp-content/uploads/2020/05/Screenshot-300×136.png 300w, https://blog.tickmill.com/wp-content/uploads/2020/05/Screenshot-768×348.png 768w, https://blog.tickmill.com/wp-content/uploads/2020/05/Screenshot.png 1054w" sizes="(max-width: 1024px) 100vw, 1024px" /></p>
<p><span>We turned bearish as price is approaching 1st resistance at </span><span>29.19</span><span> where the swing high resistance and the 61.8% fibonacci retracement are.  Price is likely to drop towards 1st support at 22.43  where the horizontal pullback support is.</span></p>
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<p><b>XAUUSD ( </b><b>Intraday bias: bearish below 1745.35) </b></p>
<p><img class="aligncenter size-large wp-image-42909" src="http://blog.tickmill.com/wp-content/uploads/2020/05/Screenshot-1-1024×471.png" alt="" width="1024" height="471" srcset="https://blog.tickmill.com/wp-content/uploads/2020/05/Screenshot-1-1024×471.png 1024w, https://blog.tickmill.com/wp-content/uploads/2020/05/Screenshot-1-300×138.png 300w, https://blog.tickmill.com/wp-content/uploads/2020/05/Screenshot-1-768×353.png 768w, https://blog.tickmill.com/wp-content/uploads/2020/05/Screenshot-1.png 1057w" sizes="(max-width: 1024px) 100vw, 1024px" /></p>
<p><span>We turned bearish as price is approaching 1st resistance at </span><span>1745</span><span>.35 where the horizontal swing high resistance is. Price is likely to drop towards 1st support at 1642.36  where the 38.2% fibonacci retracement and horizontal overlap support are.</span></p>
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<p><b>XCUUSD ( </b><b>Intraday bias: bullish above 2.2744)</b></p>
<p><img class="aligncenter size-large wp-image-42911" src="http://blog.tickmill.com/wp-content/uploads/2020/05/xcuusd-1024×465.png" alt="" width="1024" height="465" srcset="https://blog.tickmill.com/wp-content/uploads/2020/05/xcuusd-1024×465.png 1024w, https://blog.tickmill.com/wp-content/uploads/2020/05/xcuusd-300×136.png 300w, https://blog.tickmill.com/wp-content/uploads/2020/05/xcuusd-768×349.png 768w, https://blog.tickmill.com/wp-content/uploads/2020/05/xcuusd.png 1063w" sizes="(max-width: 1024px) 100vw, 1024px" /></p>
<p><span>We remain bullish as  price is likely to bounce off 1st support, which happens to be previous horizontal pullback support and 50% fibonacci retracement are. Price is likely to go higher towards 1st resistance at 2.3936  where the previous swing high is.</span></p>
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