The oil rebound fueled the risk appetite, despite the US economic deceleration


The oil benchmarks can find it harder meanwhile to stabilize again below 30$ which is looking the price that could exercise the oil exporters patience.
The oil prices could be boosted by seen tries from OPEC members and non-OPEC members oil exporters to reach a compromise for cutting their productions.
From another side, Baker Hughes weekly report came to say that US Oil Rigs have fallen by another 12 to 498, after operating 1223 a year ago.
EIA said also last Friday in its monthly report that the US productions came down to 9.317m daily in November from 9.370m in October. The oil prices in November were well above 40$. So, this number can go severely down with January prices. From another side, the prospects of keeping the interest rate unchanged in US for longer time could support the energy and the commodities prices, after the preliminary release of US Q4 GDP had shown last Friday annual growth by only 0.7%, while the consensus was referring to 0.8%, after expansion by 2% in the third quarter and 3.9% in the second quarter of last year.
This GDP expansion deceleration pace can lead to contraction in this Q1 with the current harsh winter like what has happened in 2014 and 2015.
This weaker than expected figure of 2015 Q4 came after the FOMC had clarified earlier last week that it is in waiting and see stance for assessing the global economic slowdown and the financial development implications for the labor market, the inflation, and for the balance of risks to the outlook.
It is important today to wait for Jan Manufacturing PMI data from EU, UK figures and also US ISM Manufacturing index which is expected to make progress, after Jan Chicago Manufacturing PMI came by the end of last week to show rebounding to 55.6 from 42.9 in December.


Instrument in Focus: USDJPY

USDJPY surpassed its daily SMA50 and daily SMA100 to reside now for trading close to its daily SMA200 near 121.20, after the volatility which has been triggered by BOJ's decision to imply negative interest rate.
USDJPY rose to 121.40 directly following the decision, before retreating again to 119.11, whereas it managed to go with the new market discounting creeping up to 121.67 by the end of last week with improving of the risk appetite in the equities market mainly because of the oil prices extended rebound.
USDJPY daily Parabolic SAR (step 0.02, maximum 0.2) is reading now 116.68 in its seventh day of continued being below the trading rate.
USDJPY daily RSI is referring now to existence in the neutral region reading now 64.980, while its daily Stochastic Oscillator (5, 3, 3) which is more sensitive to the volatility is having now its main line in the overbought area above 80 reading 86.565 and also its signal line which is reading now 85.306.

Important levels: Daily SMA50 @ 120.33, Daily SMA100 @ 120.61 and Daily SMA200 @ 121.48
S&R:
S1: 118.48
S2: 117.64
S3: 116.45
R1: 121.67
R2: 123.74
R3: 124.61

USDJPY Daily Chart:

USDJPY


Commodities: CL Mar. 16

CL Mar. 16 is now trading near $33, after extending its rebound from $27.55 to $34.81 which has been reached following breaking its previous resisting level at $32.80 which dragged the mixture down to form a higher low at $29.25.
CL Mar. 16 which is still well above its daily SMA20 is in its sixth consecutive day of being above its Parabolic SAR (step 0.02, maximum 0.2) which is reading today 28.76.
CL Mar 16 daily RSI-14 is referring now to existence in its neutral area reading 48.669 and also its daily Stochastic Oscillator (5, 3, 3) which is more sensitive to the volatility is having now its main line in the neutral region reading 75.959 with its signal line which is referring to 77.354 coming from the overbought area above 80, after facing resistance at $34.81.

Important levels: Daily SMA20 @ $32.10, Daily SMA50 @ $36.06, Daily SMA100 @ $40.763 and Daily SMA200 @ $46.96.
S&R:
S1: $29.25
S2: $27.55
S3: $26.93
R1: $34.81
R2: $35.57
R3: $38.37

CL Mar. 16 Daily chart:

CL


Hot instrument: EURUSD

EURUSD has faced difficulty again to be above the trendline resistance extension from 1.3992 to 1.1712.
EURUSD which is trading close to 1.0850 is in meeting now with its daily SMA50, after failing to have a place above its daily SMA100.
The pair parameters are still referring to balanced situation having its daily RSI-14 in the neutral region reading now 47.727 and also its daily Stochastic Oscillator (5, 3, 3) which is more sensitive to the volatility is having now its main line in the neutral region reading 47.185 leading to the downside its signal line which is reading now 58.662.
The pair is now in its day number 12 of continued existence above its daily Parabolic SAR (step 0.02, maximum 0.2) which is reading today 1.0763.

Important levels: Daily SMA50 @ 1.0849, Daily SMA100 @ 1.0967 and Daily SMA200 @ 1.1053
S&R:
S1: 1.0776
S2: 1.0709
S3: 1.0519
R1: 1.0991
R2: 1.1058
R3: 1.1098

EURUSD Daily chart:

EURUSD

Recommended Content


Recommended Content

Editors’ Picks

USD/JPY holds positive ground around 151.50 following Japanese CPI data

USD/JPY holds positive ground around 151.50 following Japanese CPI data

The USD/JPY pair holds positive ground for the second consecutive day near 151.45 on Friday during the early Asian trading hours. The cautious approach from the Bank of Japan to keep monetary conditions accommodative exerts some selling pressure on the Japanese Yen.

USD/JPY News

AUD/USD holds above 0.6500 in thin trading

AUD/USD holds above 0.6500 in thin trading

The Australian Dollar managed to recover ground against its American rival after AUD/USD fell to 0.6484. The upbeat tone of Wall Street underpinned the Aussie despite broad US Dollar strength and tepid Australian data.

AUD/USD News

Gold price finishes Thursday’s session set to reach new all-time highs

Gold price finishes Thursday’s session set to reach new all-time highs

Gold price rallied during the North American session on Thursday and hit a new all-time high of $2,225 in the mid-North American session. Precious metal prices are trending higher even though US Treasury yields are advancing, underpinning the Greenback.

Gold News

Top 3 Price Prediction BTC, ETH, XRP: Retail watches from the sidelines with a bias for shorts

Top 3 Price Prediction BTC, ETH, XRP: Retail watches from the sidelines with a bias for shorts

Bitcoin is showing strength as markets head into the Easter holidays. As it rises, altcoins are following suit, with Ethereum and Ripple posting almost similar gains. Meanwhile, there remains an unfilled CME Gap, with a lot of liquidity also resting above and below BTC price.

Read more

Bears have been standing before a steamroller so far this year

Bears have been standing before a steamroller so far this year

Despite a pushback on rate cuts from Christopher Waller, and what was supposed to be cautious trading sentiment ahead of critical US inflation data released later on Friday, the S&P 500 rose on Thursday, marking its best first-quarter performance in five years.

Read more

Majors

Cryptocurrencies

Signatures