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Commodities Brief: Precious metals struggle as US Dollar remains well bid

FXstreet.com (Barcelona) - The precious metals traded in a wide range today but finished marginally lower with gold closing down 0.43% at 1368 and silver ending down 0.71% to finish at 22.20 as the US Dollar bears went running for cover after Chairman Bernanke's testimony in front of congress and the release of the most recent FOMC minutes.

Oil also finished the day lower, closing down 1.83% at 94.14. The daily oil chart remains in a massive trading range as both short term moving averages and momentum have been unable to provide any follow through in either direction. It should be noted the RSI (14) once again failed just below the 60 level which is not surprising given the sharply lower sloping ADX (7) which is sitting at 18 on the daily chart and displaying a market that is likely to stay very range bound for the time being.

The trending indicators (moving averages) on the precious metals daily/weekly charts continue to sit in bearish technical set up which may continue to limit advances. Furthermore, the RSI (14) has formed a ‘negative reversal’ on both the gold and silver daily charts which could also help cap advances. First support in gold sits at 1353, while initial resistance sits at 1396 (the 9dma). Initial support in silver sits at 22.01 (low from May 21st), followed by 21.00 (bullish piercing candle on 1 hour chart).

Veni, vidi, I didn't tap; EUR/USD falls to 1.2850

The EUR/USD traded lower on Wednesday as market was concerned about the life of the QE. In his testimony, Federal Reserve Chairman Ben Bernanke repeated that the QE is linked to the economic data. No clear hint, but later the FOMC minutes showed that the board will discuss tapering in June, suggesting that the central bank is divided on what to do on stimulus.
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EUR/JPY goes wild just to end about flat for the week

EUR/JPY is last near session highs at 132.67, about flat for the week, off fresh 3-year highs at 133.80, highest since early Jan 2010. The cross jumped to mentioned highs on the back of strong Euro and weak Yen at the same time following Fed Bernanke's comments, but soon eased on USD and Yen strength as EUR/USD was dumped to 2-day lows.
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