|Day's Range||1.8580 - 1.9380|
Canadian Prime Minister Justin Trudeau on Monday called for a peaceful solution to end rail blockades by indigenous rights groups protesting the construction of a natural gas pipeline. Indigenous communities across Canada have blocked key rail lines for nearly two weeks to oppose construction of the Coastal GasLink pipeline in British Columbia, which has forced Canada's biggest railroad, Canadian National Railway Co, to shut operations in eastern Canada.
The Presidents’ Day holiday in the United States will have kept the crude oil markets a bit quiet due to the fact that volume was so thin. That being said though, there is an interesting technical set up coming.
Natural gas markets gapped to kick off the week, gaining 5% during the trading session on Monday. Ultimately, there is a market that has been extraordinarily soft for some time, so this should offer an opportunity for those who are patient enough.
* China's natural gas consumption in January saw its first year-on-year contraction in at least two years, data compiled by Chongqing Petroleum and Gas Exchange, a government-backed energy trading platform, showed on Monday. * Several analysts have cut their forecasts for gas demand in China, the world's top gas importer, as the coronavirus outbreak in the country is expected to depress industrial, commercial and transportation appetite for the fuel over the next few months. * The total natural gas supply, not including stored gas, reached 29 bcm, with domestic gas output up 1% on-year and gas imports down 3.2%, according to the Chongqing Exchange.
Canadian Prime Minister Justin Trudeau has canceled his planned trip to Barbados to help resolve widespread rail disruptions caused by indigenous rights activists opposing the construction of a natural gas pipeline, his office said on Sunday. Indigenous communities across Canada have been blocking some key railway lines for nearly two weeks in protest against the Coastal GasLink pipeline in British Columbia, which has forced Canada's biggest railroad, Canadian National Railway Co, to shut operations in eastern Canada.
With traders generally looking a week to two weeks into the future, this week’s trading action will likely be influenced by the weather forecasts for February 22-26 and February 28 to March 1.
A failure to make a new high, a higher-high, lower close or a break through Friday’s low at 98.875 will change the chart pattern. This will also signal that the selling is starting to become stronger, or the buying weaker.
Trader reaction to the two 50% levels at .6706 and .6718 will tell us if the counter-trend buying is getting stronger, or the selling pressure persists.
The IEA slashed its demand forecast for the first quarter of 2020, predicting that quarterly oil demand growth will turn negative for the first time in a decade
USD/CHF has further to go on the upside following a bottom breakout this week in the pair. Weakness can be used to accumulate given upside targets.
Based on the prolonged move up in terms of price and time and Friday’s price action, the direction of the March E-mini NASDAQ-100 Index into the close is likely to be determined by trader reaction to Thursday’s close at 9613.00.
Silver markets have shown significant support just below, as we have bounced from a major trend line. By doing so we ended up forming a bit of a hammer and that is a good sign.
Natural gas markets have initially pulled back during the week, breaking below the $1.80 level but then turned around to rally a bit. At this point, the market looks as if it is trying to stabilize a bit.
The British pound rallied during the week, reaching towards the 200 week EMA against the Japanese yen. That being said it looks as if the market is trying to take off to the upside.
The Euro has plunged significantly during the week, breaking through the 1.10 level during the week before, and following through the 1.09 level over this past week.
The Australian dollar has rallied a bit during the week, but peel back some of the gains at the end of the day on Friday to show less than convincing action.
Natural gas markets have gone back and forth during the trading session on Friday, showing signs of exhaustion in both directions, testing the $1.80 level over the last couple of days.
US dollar has gone back and forth during the trading session on Friday, as we sit just below the ¥110 level. This is a large, round, psychologically significant figure that continues to cause issues.
The British pound pulled back a bit during the trading session on Friday, as traders are probably wanting to get rid of risk heading into the weekend. After all, there is a whole host of issues out there that could flareup.
The Euro rallied a bit during the Friday session, which makes quite a bit of sense considering that the weekend is coming, and quite frankly most people who have shorted the Euro against the US dollar have made quite a bit. Now that the Euro has broken major support, it’s more than likely being patient will be the best way to trade this market.