Sample Category Title

Pivot (invalidation): 63.60

Our preference Short positions below 63.60 with targets at 63.05 & 62.75 in extension.

Alternative scenario Above 63.60 look for further upside with 64.00 & 64.30 as targets.

Comment The RSI is bearish and calls for further decline.

Pivot (invalidation): 15.0300

Our preference Short positions below 15.0300 with targets at 14.8300 & 14.7800 in extension.

Alternative scenario Above 15.0300 look for further upside with 15.1000 & 15.1600 as targets.

Comment As Long as 15.0300 is resistance, expect a return to 14.8300.

Pivot (invalidation): 1290.00

Our preference Short positions below 1290.00 with targets at 1282.50 & 1279.00 in extension.

Alternative scenario Above 1290.00 look for further upside with 1291.75 & 1295.00 as targets.

Comment The RSI advocates for further downside.

WTI crude oil caught a bid after the weekly report from the American petroleum institute on Tuesday saw a draw in oil inventories. According to the API data, US crude oil inventory fell 3.09 million barrels for the week ending April 12 th . This was in contrast to expectations of a 1.71 million build-up in inventory. Oil traders wait for the official data from EIA today.

Can Crude Maintain the Momentum to the Upside?

Oil prices rebounded sharply on the day as it reclaimed the previous highs near 64.55. However, with the bearish divergence, there is scope for price to erase the gains once again. But despite this, there is a risk of oil prices inching higher to test the 65 – 66 level where resistance is most likely to form. In the short term, we expect oil prices to trade flat within 64.55 and 63.20 corridor.

Gold prices extended declines for the fourth consecutive session, losing 0.83% on the day after pulling back from a 4-month low. Sentiment was already weak but only grew steady as Chicago Fed President Evans said that he expects one more rate hike by 2020. Similar views came from Boston Fed President Rosengren who stated that the economy was doing quite well.

Will XAUUSD Rebound to the Upside?

The declines in the XAUUSD saw the price of the precious metal falling to the 200-day moving average on a daily basis. Price posted a modest pullback following this decline. We expect the bearish momentum to slow as a result. A pullback is quite possible in gold prices with the recently breached support of 1285 likely to serve as resistance.

The eurozone ZEW economic sentiment index released yesterday saw an increase in the index from -2.5 to 4.5 in April. The solid rebound came with Germany's ZEW economic sentiment index also rising. Investor confidence in Germany rose to a 13-month high, bringing optimism of a rebound in the eurozone's economy.

Will EURUSD Break Out Above 1.1300?

The EURUSD retreated off the highs after briefly testing the 1.1300 handle. The retracement saw price falling back to 1.1258. With support forming here, a rebound in the EURUSD is likely. The next main target is at the 1.1330 handle. If the common currency manages to break this level, we anticipate a move toward 1.1400.

Investors hoping for better-than-expected data from the world's second largest economy were not disappointed on Wednesday. China's economy grew faster than expected in the first three months of 2019, as stimulus measures began to reflect in the country's economic activity. GDP rose 6.4% in Q1, 0.1% above market expectations, and matched growth levels posted in the final quarter of 2018.

Almost all data released from China today managed to beat estimates, including industrial production and retail sales in March, which jumped 8.5% and 8.7%, respectively.

The data released today shows strong evidence that the slowdown experienced in the first two months of the year is turning around, and government policies may remain loose to continue supporting growth. However, a U.S. – China trade agreement is still needed to provide further support to the private sector in order to keep driving growth higher.

The reaction in equity markets was muted after the data release, probably because much of the positivity has already been priced in. The CSI 300 Index has already risen by 35.5% in 2019 and the SSE Composite is up by 30.6%. In currency markets however, the CNY touched its highest level since March 21 to trade at 6.69, and the Australian Dollar broke above 0.72, a level last seen on February 21. Crude also edged higher, touching its highest level so far this year, with Brent trading above $72.

Shortages from the supply side supported the rally in Oil prices in Q1, but today's data suggests that investors may also be concerned about the demand side of the equation. If today's improvement in Chinese data will translate into more demand from the country's refineries in April, and Iranian and Venezuelan output continues to fall, prices are likely to edge higher, unless OPEC members decide to relax production constraints.

The improvement in risk sentiment has made Gold less appealing to investors. The precious metal has come under significant pressure due to the equity market surge and a stronger US Dollar. However, we expect limited downside from current levels, especially if central banks continue to demonstrate a strong appetite for buying Gold and refrain from tightening monetary policy in the near future.

Ethereum is attempting to recover above the $160.00 level on Wednesday after the second largest cryptocurrency found strong technical support from the $155.00 level. The four-hour time frame is showing a head and shoulders pattern, with neckline support found at the $150.00 level. Key upside resistance for the ETHUSD pair is currently found at the $170.00 level.

If the ETHUSD pair trade below the $160.00 level, key support is found at the $150.00 and $122.00 levels.

If bulls hold price above the $160.00 level, key resistance is found at the $170.00 and $185.00 levels.

The euro currency is starting to move higher against the US dollar after sellers failed to hold price below the 1.1290 technical support level. The intraday sentiment surrounding the EURUSD pair is only bearish while trading below the 1.1290 level. The key weekly technical resistance level for the EURUSD pair above the 1.1290 level is currently located at the 1.1360 level.

The EURUSD pair is only bearish while trading below the 1.1290 level, key technical support is found at the 1.1250 and 1.1229 levels.

If the EURUSD pair trades above 1.1290 level, key intraday resistance is found at the 1.1325 and 1.1360 levels.

The British pound is under pressure against the US dollar after the pair was strongly rejected from the pivotal 1.3100 resistance level. The one-hour time frame is currently showing a bearish head and shoulders pattern, with neckline support close to the 1.3000 level. The downside projection of the bearish pattern would take the GBPUSD pair toward the February swing-low.

The GBPUSD pair is bearish while trading below the 1.3100 level, key intraday support is found at the 1.3000 and 1.2940 levels.

If the GBPUSD pair trades above the 1.3100 level, key intraday resistance is found at the 1.3125 and 1.3200 levels.