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:
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:
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:
Recommended Content
Editors’ Picks
EUR/USD retreats below 1.0700 as USD rebounds
EUR/USD lost its traction and retreated slightly below 1.0700 in the American session, erasing its daily gains in the process. Following a bearish opening, the US Dollar holds its ground and limits the pair's upside ahead of the Fed policy meeting later this week.
USD/JPY recovers toward 157.00 following suspected intervention
USD/JPY recovers ground and trades above 156.50 after sliding to 154.50 on what seemed like a Japanese FX intervention. Later this week, the Federal Reserve's policy decisions and US employment data could trigger the next big action.
Gold holds steady above $2,330 to start the week
Gold fluctuates in a relatively tight channel above $2,330 on Monday. The benchmark 10-year US Treasury bond yield corrects lower and helps XAU/USD limit its losses ahead of this week's key Fed policy meeting.
Week Ahead: Bitcoin could surprise investors this week Premium
Two main macroeconomic events this week could attempt to sway the crypto markets. Bitcoin (BTC), which showed strength last week, has slipped into a short-term consolidation.
Five Fundamentals for the week: Fed fears, Nonfarm Payrolls, Middle East promise an explosive week Premium
Higher inflation is set to push Fed Chair Powell and his colleagues to a hawkish decision. Nonfarm Payrolls are set to rock markets, but the ISM Services PMI released immediately afterward could steal the show.