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Commodities Brief: Precious metals finish lower as US equities continue to outperform

FXstreet.com (Barcelona) - It was another solid day for equities, with the S&P 500 closing at another new all time high of 1625.96. However, the commodities markets were not as fortunate with precious metals and oil unable to finish the day in positive territory. Perhaps it was the interest rate cut by the RBA during the Asia session which helped lead to the weakness in commodities. In any event, gold closed the day sharply lower, down 1.17% at 1451.80, while silver managed a slightly better showing finishing down 0.33% at 23.92 (well off the lows of 23.40). On a final note, oil closed 0.28% at 95.52.

From a technical perspective, both gold and silver are holding just above critical support levels which if breached could help lead to another leg down. In regards to gold, keep an eye on the 1440 level which if violated on a daily close would complete the recent counter trend rally and could open the doors down to support near 1405 (previous resistance, now support on daily chart). Silver needs to hold the short term uptrend line which comes in at 23.20. A daily close below here could open the doors back down to 22.50 (daily support from mid April).

As for oil, the technical picture isn’t as clear but in order to take another leg higher it would need to close above 97.20 (downtrend resistance line on daily chart) which could open the doors to 99.27 (the 200wk ma). Initial support comes in at 94.90 (low from previous 2 days), followed by 93.96 (the 200dma).

Forex: EUR/JPY advances continue to be capped at 130.50

The EUR/JPY finished the session down 45 pips at 129.40. Initially the pair had traded as high as 130.36, but was again capped just below the 130.50 level for the third day in a row. There will be no economic releases from Japan in the coming session, while the main focus in Europe will be German Industrial Production due out at 10:00GMT. Currently, the pair is leaking lower during Asia trade, down 34 pips at 129.19.
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Forex: USD/JPY edging lower during early Asia trade

FXstreet.com (Barcelona) - The USD/JPY finished the day down 50 pips at 98.96. The pair was again capped by the upper boundary of the ‘pennant’ formation on the daily chart which has been forming since early April. The economic calendar will be light in the coming session with no data due out from Japan. Currently, USD/JPY is leaking lower during Asia trade, down 14 pips at 98.87.
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