WTI Crude plunged below $50 during trading on Friday as a mixture of Dollar strength and profit-taking encouraged bearish investors to install a heavy round of selling. Despite the sharp appreciation in the early parts of the week from the speculations of a drop in global supply, the oversupply woes continue to haunt investor attraction. With Iran increasing oil production incessantly and optimism rapidly fading over any OPEC freeze deal in the near future, prices could be poised for further declines. WTI remains fundamentally bearish and this over extended relief rally could come to an end if bears attain a decisive weekly close below $50. From a technical standpoint, prices trading above the daily 20 SMA while the MACD has also crossed to the downside. If prices manage to close below the daily 20 SMA, then previous support at $50 could transform into a dynamic resistance that should open a path towards $48.50.
The USDCAD entered a slippery decline during trading this week following the previous resurgence in oil prices that offered CAD bulls enough inspiration to send the USDCAD to fresh weekly lows. This pair has fulfilled the prerequisites of a bearish trend as there have been consistently lower lows and lower highs while the MACD trades to the downside. With the Dollar potentially weakening as US rate hike expectations fade, the USDCAD could trade towards 1.2600. From a technical standpoint, prices are trading below the daily 20 SMA and the current momentum could send the USDCAD towards the 1.2600 support. Bears remain in control as long as 1.2800 defends.
The Dollar Index remains on a chaotic rollercoaster ride with prices being bullish one week then bearish another. With the dismal NFP report for May discounting any hopes over the Fed taking action in Q2, Dollar weakness remains the main theme that ripples across the global markets. From a technical standpoint, the Dollar Index has found some support around 93.50 and could trade towards 94.50 if profit taking persists. Prices are currently below the daily 20 SMA while the MACD also trades to the downside. A breakdown back under 94.00 should open a path towards 93.00.
Gold prices smashed through $1270 during trading this week as the horrible combination of ongoing Brexit concerns and mounting anxieties over slowing global growth renewed a wave of jitters which increased the metal’s allure. The impacts of the World Bank’s gloomy outlook towards the global economy have encouraged investors to seek the comfort of safe-haven assets. Although this metal could be destined to decline lower the future when the Fed eventually raise US rates, short-term bulls could exploit this relief rally to send Gold prices towards $1280 on the basis of a breach above $1270. From a technical standpoint, prices are trading above the daily 20 SMA while the MACD has crossed to the upside. A decisive daily close above $1270 may open a path towards $1280.
Silver prices appreciated sharply with prices trading back above $17.00 as a vulnerable Dollar encouraged bullish silver investors to send prices higher. This metal has turned remarkably bullish on the daily timeframe and with short-term expectations fading over the Fed raising US rates in Q2, bulls could exploit this opportunity to send prices much higher. From a technical standpoint, prices are trading above the daily 20 SMA while the MACD has also crossed to the upside. Previous resistance at $16.90 may turn into a dynamic support that could encourage a further incline towards $17.50.
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