Cycle Trading: Oil Recovers The 200 MA

LikesMoney Independent Analyst

Oil formed a daily swing low on Thursday.

Oil printed its lowest point on Wednesday, day 31, placing oil in its timing band for a daily cycle low. Oil did close below the 200 day MA on Wednesday, which suggested a further decline. But oil delivered a bullish surprise on Thursday by forming a swing low and closing back above the 200 day MA to signal that day 31 was the daily cycle low. Oil will need to close back above the 10 day MA for confirmation.

Author

LikesMoney

Independent Analyst

Assets (such as stocks, gold, and the dollar) have identifiable cycles.

EUR/USD clings to daily gains, still below 1.1900

EUR/USD manages to reverse two daily pullbacks in a row and advances modestly on Thursday, hovering around the 1.1880 zone amid the inconclusive price action around the US Dollar. Meanwhile, weekly Initial Claims rose more than expected last week, while attention is expected to shift to the upcoming US CPI data on Friday.

GBP/USD picks up pace, hits 1.3640

GBP/USD trades with modest gains around 1.3640 so far on Thursday. Indeed, Cable looks to leave behind the weakness seen in the first half of the week in a context of an equally erratic performance in the Greenback and disappoting UK data releases.

Gold stays offered below $5,100

Gold keeps the choppy trade well in place on Thursday, navigating the area below the $5,100 mark per troy ounce amid the lack of clear direction in the Greenback, declining US Treasury yields across the curve and caution ahead of Friday’s publication of US CPI.