Talking Points
- Crude Oil, Copper Rise on Hopes for Coordinated Central Bank
Stimulus
- Gold and Silver Consolidate, Waiting for Greek Election for
Direction Cues
Crude oil and copper prices are on the upswing amid as risk
appetite firms across financial markets following reports that
central banks are preparing to step in to stabilize
financial markets
if the weekend's much-feared
Greek election
outcome generates widespread dislocation . Reuters cited a G20
cited official saying the world's top monetary authorities would
provide liquidity if credit conditions seize up while BOE Governor
Mervyn King unveiled a credit-easing program meant to feed funding
to UK banks set to launch next week. Gold and silver are treading
water, unwilling to decline Greece-linked jitters linger but
lacking the acute panic needed to fuel a rally.
S&P 500 stock index futures are pointing higher ahead of the
opening bell on Wall Street, but the
risk of liquidation remains high
as traders turn defensive into the close of the trading week. The
US economic data docket may prove to be the catalyst for a
turn-around in sentiment. The University of Michigan gauge of
consumer confidence is expected to tick lower and New York State
manufacturing activity slows in June. Industrial Production is
likewise forecast to decelerate. Such an outcome promises to reboot
demand for haven assets, pushing the US Dollar higher.
WTI Crude Oil (NY Close): $83.91 // +1.29 // +1.56%
Prices broke higher after putting in a bullish Piercing Line
candlestick pattern above support at 81.07, the 23.6% Fibonacci
expansion, as expected. The bulls now aim to challenge the June 7
high at the 87.00 figure. The 14.6% Fib at 83.30 has been recast as
near-term support.
Daily Chart - Created Using FXCM Marketscope 2.0
Spot Gold (NY Close): $1 623 . 73 // + 6 . 67 // +0. 41 %
Prices broke above major resistance at a falling trend line set
from early March. Buyers now aim to challenge the 76.4% Fibonacci
retracement at 1637.35, with a break higher targeting the May 1
high at 1671.49. The 61.8% Fib at 1616.23 has been recast as
near-term support.
Daily Chart - Created Using FXCM Marketscope 2.0
Spot Silver (NY Close): $28. 64 // -0.1 8 // -0. 63 %
Prices continue to trace out a Flag chart formation, a setup
indicative of bearish continuation. Confirmation is required on a
daily close below the pattern's bottom - now at 28.32 - which would
expose 27.06 as the next downside objective. The first layer of
major resistance lines up at 29.71.
Daily Chart - Created Using FXCM Marketscope 2.0
COMEX E-Mini Copper (NY Close) : $3. 354 // +0.0 1 4 // +0. 42
%
Prices continue to tread water below resistance at 3.384, the
23.6% Fibonacci retracement. A break above this boundary targets
the 38.2% Fib at 3.474. Double bottom support comes in at
3.250.
Daily Chart - Created Using FXCM Marketscope 2.0
--- Written by Ilya Spivak, Currency Strategist for
Dailyfx.com
To contact Ilya , e-mail ispivak@dailyfx.com . Follow Ilya on
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