WTI (US Oil) gaps higher on Saudi cuts – AUD and CAD interest rates in focus [Video]
|I’m Brad Alexander and in this week’s Market Blast Fundamentals let’s take a look at Gold (XAUUSD), GBPUSD, CADJPY, CADCHF, Brent Crude (UKOil), and WTI (USOil).
There were rumours about the possibility of production cuts by OPEC+ which drove the prices of WTI and Brent Crude higher, along with CAD.
However, OPEC+ held firm but Saudi Arabia decided to cut production by 1,000,000 barrels a day in July which drove prices higher.
Price action peaked at resistance at $74.40 but quickly fell to $73 leaving a gap.
Of course, we will take a look at this from the technical side tomorrow.
By the way, UBS is predicting $95 per barrel on Brent Crude by the end of the year.
As predicted, CAD flew higher as well, based on the higher price of WTI.
When we see big moves like these, we like to look for technical levels for the possibility of reversals in the future.
For example, price action might reach this key level of resistance at 0.68 francs on CADCHF.
CADJPY is also approaching a key level of support but be aware that we have very little confidence in JPY strength these days.
We will, however, be studying this technical opportunity tomorrow.
Regarding the Yen, keep an eye on Japanese GDP figures this Thursday and, regarding CAD, we have an Interest Rate decision from the Bank of Canada along with a PMI and Employment data this week.
We have lots of EUR news this week and an Interest rate decision from the Reserve Bank of Australia on Tuesday, followed by a quarterly GDP report on Wednesday.
AUD is very strong against everything except CAD so be prepared to trade the pullbacks tomorrow.
GBP is finally starting to show some weakness and we will be monitoring this and looking for opportunities this week.
The next Bank of England meeting occurs on 22 June and if there is a hint of an Interest Rate hike slowdown or a pause, GBP will go weaker still.
Last week’s very high Non-Farm Payroll report drove Gold lower and we will look at this tomorrow from the technical side.
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