USD/CAD
What happened previously?
USDCAD dropped nicely from our previous 1st resistance at 1.43398 and is heading south towards 1st support at 1.40165. USD strength is largely affected by the increasing death toll and confirmed cases in the U.S., but this affect the outlook of CAD more as crude oil see bearish pressure from the demand side.
What can we expect?
We are seeing price to test 1st support at 1.40165 and there’s a oversold Stochastics providing support as well. 1st support level is a confluence level of horizontal overlap resistance and 61.8% Fibonacci retracement.
UKOIL
What happened previously?
Price dropped nicely from our previous resistance. Oil bounced from recent 17-year low as China’s March PMI printed to the upside surprise. But as Covic-19 situation still spreading fast in the rest of the world, oil demand side stays weak.
What can we expect?
We turn bearish for today’s trading. We are seeing the price to retest the first resistance at 27.89 and is likely to drop from there. Stochastics are reaching a new high at 100.62 which is a sign of bearishness. 1st resistance level happens to be where the 38.2% Fibonacci retracement lines up with recent horizontal swing high.
XAUUSD
What happened previously?
Our bearish call went well. Price dropped towards our previous 1st support. XAU reversed off our previous 1st resistance.
What can we expect?
We turn bullish as price is bouncing off our 1st support at 1569.79 and is likely to rise further from there. Stochastics is also showing signs of oversought for a bounce to happen. The 1st support happens to be where 76.4% Fibonacci retracement and 127.2% Fibonacci extension lines up well and could serve as a key resistance level.
XCUUSD
What happened previously?
XCU rose nicely after China on Tuesday said the official Purchasing Managers Index for March expanded, boosting market sentiment. Although the number of confirmed cases of Covic-19 continues to rise, the market shows more hope for manufacturing industry to rebound.
What can we expect?
Our bullish view unchanged. We are seeing the price to break above the upside confirmation at 2.2382, which happens to be where the 50% Fibonacci retracement. If price can break above the upside confirmation, more upside is possible towards 1st resistance at 2.30794.
Disclaimer: The material provided is for information purposes only and should not be considered as investment advice. The views, information, or opinions expressed in the text belong solely to the author, and not to the author’s employer, organization, committee or other group or individual or company.
Past performance is not indicative of future results.
High Risk Warning: CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 75% and 75% of retail investor accounts lose money when trading CFDs with Tickmill UK Ltd and Tickmill Europe Ltd respectively. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
Futures and Options: Trading futures and options on margin carries a high degree of risk and may result in losses exceeding your initial investment. These products are not suitable for all investors. Ensure you fully understand the risks and take appropriate care to manage your risk.
Desmond Leong runs an award-winning research firm (The Technical Analyst finalists 2018/19/20 for Best FX and Equity Research) advising banks, brokers and hedge funds. Backed by a team of CFA, CMT, CFTe accredited traders, he takes on the market daily using a combination of technical and fundamental analysis.