Talking Points
- Crude Oil, Copper to Follow Stocks Higher on Firming Risk
Appetite
- Gold and Silver Find Support in Ebbing Haven Demand for US
Dollar
Commodities are pushing broadly higher ahead of the opening bell
in Europe as risk appetite firms across financial markets. Asian
bourses added a full percentage point overnight, with telecoms
leading the way higher. Newswires chalked up the move to the debut
of the iPhone 5, with preorders pointing to strong demand.
Investors hope a strong showing will help boost export sales for
the device's component manufacturers, which are scattered across
countries from Germany to Taiwan.
Growth-geared crude oil and copper prices are following shares
higher while gold and silver are finding de-facto support as the
risk-on mood
erodes haven demand for the US Dollar
. S&P 500 stock index futures are pointing firmly higher in
late Asian hours and the economic calendar is light on scheduled
event risk, hinting more of the same is likely to carry through
into the end of the trading week.
WTI Crude Oil (NY Close): $9 2 . 42 // + 0. 12 // +0. 13 %
Prices found interim support at 91.56, the 38.2% Fibonacci
retracement, after taking out the bottom of a rising channel carved
out since early July yesterday. Renewed selling below this boundary
targets the 50% level at 88.83. The channel bottom - now at 94.72 -
has been recast as resistance. A push back above that aims to
challenge a falling trend line set from late February (now at
99.39).
Daily Chart - Created Using FXCM Marketscope 2.0
Spot Gold (NY Close): $1 768 . 6 0 // - 1 . 80 // -0.1 0 %
Prices continue to stall after taking out resistance at a
falling trend line connecting major swing highs since early
November 2011. Near-term resistance is at 1790.55, with a break
above that targeting 1802.80. The trend line - now at 1757.39 - has
been recast as support. A push back below that boundary sees
initial downside barriers at 1742.44 and 1719.72, the 14.6% and
23.6% Fibonacci retracements respectively.
Daily Chart - Created Using FXCM Marketscope 2.0
Spot Silver (NY Close): $34.67 // +0.06 // +0.17%
Prices are stalling ahead of resistance at 34.80, the 76.4%
Fibonacci retracement, with early signs of negative RSI divergence
warning of ebbing upside momentum and hinting a pullback may be
ahead. Initial support lines up in the 32.93-33.14 area, marked by
a horizontal pivot level and the 61.8% Fib, with a break below this
boundary exposing the 50% level at 31.79. Alternatively, a break
above resistance aims to challenge 36.89.
Daily Chart - Created Using FXCM Marketscope 2.0
COMEX E-Mini Copper (NY Close) : $3.760 // -0.054 // -1.42%
Prices continue to stall below resistance at a falling trend
line set from early February (3.833). A break higher exposes swing
highs at 3.955 and 3.988. Near-term support lines up at 3.707, the
23.6% Fibonacci retracement level. A push below that targets the
38.2% level at 3.627.
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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