Daily market recap for 04.07.2018
USD/CAD still in downtrend movement as Oil heats up with ease. The price has met a strong supply zone at 1.33811 and has been falling since the confirmation bearish engulfing candle from 28.06. The Loonie has landed on 1.31301 which is a demand zone for now and it needs to hold firm if the price can manage to go up as the Loonie to get weaker. USD overall strength is subduing the price and rising Oil which is triggering sell orders. The pair is still with a Golden Cross from 01.05 and the perspectives are positive for the USD to rise against the CAD. If the demand zone falls, the price will try to fall towards the 5DEMA (blue curve) for additional test on the determination on the USD to climb against the CAD. This, of course, will be accelerated if the rise in Oil continues, despite that sometimes correlation is lacking between the two instruments and with new rumors of Saudi increase in production.
The Yen stays weak for now with the overall demand for the Buck and the Daily trend is up for now. A closer looks can reveal that the pair is nearing a Golden Cross for additional confirmation on the Bullish intentions that the Buck has against the Yen. Currently, the price is hovering above 110 and the price is crawling bit by bit to the bottom line of the uptrend, which will be tested. The movement towards back the 50DEMA (blue curve) is not excluded as the USD is losing a bit of steam. Tuesday's candle has turned in to a Bearish engulfing one indicating from some direction South.
Crude still in the spotlight. For Tuesday it had a sudden dump as the market digested the news from a report stated on Al Jazeera that the Saudis are intended to up production. Price has reached 75.29 with the impressive run after last month's Inventories report which on a couple of times showed bigger build. The price is still in an uptrend and still in the current Fibonacci levels. The short battle between Bulls and Bears Yesterday may shackle a bit the rally, forming a small correction, which I presume it can go to 72.28 and maybe forming a range between 72.28 and 74.52. The sentiment, for now, is still positive for the Oil and buyers are for now in control, but it may evaporate in the short - term.
Gold has bounced back from 1237.58 after the triangle has played out and traded very well with a good selloff. Death Cross still in sight. WIth the price moving up very well it has the potential to reach 23.6 Fibo. Supply zone there may appear, putting renewed pressure on the Gold. Sell positions are good there to be placed with SL a bit above the 23.6 level.
The Euro has been struggling as well with the ongoing USD spree with the recent days and it is moving in a range under the Death Cross. The demand levels on the bottom are still 1.15081 and 1.15274. Topside remains 1.17 as a psychological and 1.17017 as the nearest resistance if the movement tries to push up above 1.17. If successful in this occasion, the price will try to move to the 50DEMA and will try to escape the Bearish bias. Going long if the price confirms a god signal above 1.17 is going to be preferred.
Bitcoin tries to catch its breath between 5753.63 and 6650.46/ Doji candle from Tuesday signal that the price will go down further and will try to cover the gap from Monday. For me personally the selling is not yet over. Something huge and positive needs to happen for a major reversal and another Bull run. Buying now on the cheaper levels is good, but if it can go lower, you can wait for that as well.