|Day's Range||2.6750 - 2.7260|
The most important number into the close is yesterday’s close at $56.96. Holding above this level will signal the presence of buyers. They may make a run at the intraday high at $57.81.
Based on the early price action, the direction of the April Comex gold futures contract into the close is likely to be determined by trader reaction to the short-term uptrending Gann angle at $1324.70.
The S&P 500 rallied during the week but ran into a lot of trouble at the 2800 level. This is that much of a surprise though, because this is an area that has caused a significant amount of trouble in the past.
Natural gas markets have rallied slightly during the course of the week, as we are getting close to a major support level underneath. However, it looks as if the market being oversold makes for an opportunity to see a bit of a bounce.
Gold markets initially rallied during the week but gave back quite a bit of the gains. By doing so, we are forming a massive shooting star which of course is very negative. However, we have a lot of support underneath so this may just be the market getting ready to consolidate a bit.
Silver market participants picked up a bit of value during the trading session on Friday, as we have seen a continued buying of the dips. At this point, I suspect that may be what we continue to see, with perhaps the possibility of a little consolidation in the meantime.
The crude oil markets rallied a bit on Friday but continues to be suppressed at major resistance levels. Because of this, I think that the market is probably trying to churn up enough momentum to the upside to continue going higher. Short-term pullbacks should be buying opportunities from what I see though.
Natural gas markets went sideways during the trading session on Friday, as we start to drift into the weekend. Because of this, it’s very likely that we will remain neutral.
USDCAD trades with dovish bias as positive crude oil price and Sino-U.S. trade talk related headlines influence rally in favor of the Canadian Dollar.
The Australian dollar has gone back and forth during the week, showing signs of confusion. However, it looks very likely that we are going to continue to favor the supportive area just underneath. Because of this, I do believe that the action that we are seeing on Friday only reiterates that fact.
The US dollar continues to do very little against the Japanese yen overall, as we are essentially stuck at major resistance. I find this interesting as the USD/JPY pair seems to be acting as a bit of a proxy for the S&P 500. The two are moving in lockstep, so pay attention to both markets.
The British pound fell slightly during the trading session on Friday as we have reached pretty significant resistance above. However, from what I see we have recently broken above the top of a bullish flag, so there are underlying reasons to believe that buyers are going to come back.
The Euro fell initially during the trading session on Friday but has turned around to show signs of life midday, because of this, it looks as if the 1.1350 level should offer buying pressure. With that in mind, it’s very likely that we will chop around over the next 24 hours but it looks to me as if the market is ready to try to go higher.
During trading on Friday, the Australian dollar initially fell a bit during the trading session, but found support at the 0.7050 level again, turning around to show signs of life. Because of this, it’s very likely that the market will continue to rotate in this consolidation area.
Crude inventories in West Texas dropped this week to the lowest in four months after a converted pipeline began transporting crude from the nation's biggest shale oil field to the U.S. Gulf Coast, data from market intelligence provider Genscape showed. The drop in storage in the Permian Basin is another sign that new pipelines out of the region have begun to alleviate a crude bottleneck that depressed local crude prices as production overwhelmed pipeline capacity and filled storage tanks. Crude inventories in the Permian Basin fell to 15 million barrels in the week to Feb. 19, the lowest since October and down from a record 22 million barrels in November.
Based on the early price action, the direction of the EUR/USD the rest of the session is likely to be determined by trader reaction to the uptrending Gann angle at 1.1334.
At this time, bearish traders are hoping for a pullback into the $2.55 level, while bullish traders would like to see a challenge of a technical retracement zone at $2.749 to $2.792. This zone will likely be resistance. One can’t really get excited about the upside potential of this market unless the April futures contract settles convincingly above $2.792.
With supply and demand nearing a balance point, there may not be that much more upside potential in the markets. Goldman Sachs said on Thursday that surging U.S. supply likely means that expected non-OPEC supply will grow by 1.9 million bpd this year, more than offsetting the OPEC cuts.
What goes up, has to eventually go down. That truth can be currently seen on Gold, where we do have a strong bearish correction. The downswing did not start in a random place. Sellers attack precisely on the upper line of the channel up formation. Current drop is aiming the lower line of this pattern along with the horizontal level around 1315 USD/oz. Price getting there is almost certain as the current bounce is really small and it seems that sellers currently have all what it takes to fully control the situation.
The gold prices fell lower during Thursday’s session, reaching down the $1325 level as the market has been in a bit overbought condition. The silver prices have pulled back during the yesterday’s session, breaking below the $16 level to reach down towards the $15.80 level. The crude oil prices traded back and forth during yesterday’s session, as it is witnessing a bit of resistance above.
Based on the early price action and yesterday’s move, the direction of the March E-mini NASDAQ-100 Index on Friday is likely to be determined by trader reaction to the major Fibonacci level at 7022.25.
Based on the early price action, the direction of the NZD/USD on Friday is likely to be determined by trader reaction to a pair of Gann angles at .6814 and .6799.
While surging U.S. crude oil production has been grabbing headlines as an oversupply threat, the impact of the oil boom in Brazil is being largely overlooked