While it is a shortened week, with economic data on the lighter side, there is still plenty for the markets to focus on and OPEC and COVID-19 in particular.
Get ready for some incredible price moves in the metals markets and congrats to all the Gold and Silver bugs out there. Our analysis says our patience and accumulation of physical metals will soon pay off in a big way.
The gold markets but most of the week following below to the sub $1600 level, but then turned around to show signs of life again towards the end of the week, and now have formed a very bullish looking candlestick.
Gold markets initially pulled back slightly during the trading session on Friday but then turned around to rally in quiet trading overall after the Non-Farm Payroll figures came out much worse than anticipated.
The US dollar has initially fallen during the week but then turned around to reach a little bit higher, as the market is sitting in the middle of what is the larger consolidation range.
The British pound continues to see a lot of resistance in the 1.25 region, an area that is a large, round, psychologically significant figure and of course the 61.8% Fibonacci retracement.
The British pound has gone back and forth during the course of the week, bouncing around the ¥133 level, as we continue to try to figure out where we are going next.
I grew tired of the instability and blatant manipulation in precious metals, over the next few weeks, I’ll be switching to an Accumulative Metals Portfolio (AMP).
Gold dug its heels into the $1,600 territory on Friday, ending its second week there, as investors turned again to the comfort of safe havens after epic U.S. job losses for March from the Covid-19 pandemic. The United States lost 701,000 jobs in March as the pandemic bumped up the nation’s unemployment rate by the most in a month since 1975, the Labor Department said in its monthly employment report on Friday. The report came on the heels of Thursday’s weekly jobless claims by the department that showed a record 6.6 million Americans filed for unemployment insurance for the week ended March 28.
The Australian dollar has initially tried to rally during the week but then broke down again as the 0.60 level looks very likely to act as a bit of a magnet for price.
USD/CAD consolidates near 1.4150 as safe haven purchases of U.S. dollar are offset by the strength in the oil market.
The US dollar has rallied a bit during the Friday session going into the weekend, reaching towards the ¥108.50 region. That being said, it looks as if treasury buying continues.
The British pound fell into the weekend, showing signs of overall weakness. After all, the jobs number was horrible in the United States, losing over 700,000 jobs, getting people to run for shelter.
The British pound initially tried to rally against the Japanese yen on Friday but has pulled back just a bit as we continue to see consolidation. At this point, the market is likely to have to make some type of significant move.
The Euro fell quite a bit during the trading session on Friday, reaching below the 1.08 level. Having said that, the market did stabilize a bit around the jobs figure, and therefore we could get a slight bounce.
The Australian dollar initially tried to rally during the trading session on Friday, but then broke towards the crucial 0.60 level. At this point in time, I believe that the market is going to continue to see the Australian dollar asked questions of the global economy.
Based on the early price action and the current price at 1.0800, the direction of the EUR/USD the rest of the session on Friday is likely to be determined by trader reaction to the uptrending Gann angle at 1.0816 and the short-term Fibonacci level at 1.0831.
The British pound has been resilient this week and has held within a tight range relative to price action in prior weeks despite the dollar regaining upward traction.