CRUDE OIL & GOLD POINTS:
Crude Oil Prices May Drop amongst the following factors seen.
- Crude oil prices pop as US blames Iran for tanker attack in Oman
- Gold prices capitalize as risk aversion sends Treasury bond yields decline
- Soft US retail sales, consumer confidence data may broadly sour sentiment
- What to Look for in a Forex Signal
Crude oil prices jumped high from reports of an attack on two-tankers in the Gulf of Oman. US Secretary of State M Pompeo blamed the incident on Iranians, amplifying concerns about escalation that might lead to supply issues. Gold prices increased as the uneasy mood weighed on bond yields.
SOFT US RETAIL SALES, WITH CRUDE OIL
US retail sales saw the University of Michigan gauge of consumers are in focus from here. Receipts are seen rising 0.7 percent in May 2019 – rebounding from April 0.19 percent change – while sentiment pulls back from an seven-month high level. US data outcomes have under performed according to forecasts recently, opening the door for further disruptions.
Soft FX results might hold on the markets’ confidence in the dramatic shifts in Fed policy bets since early February 2019. Investors already expect at least two cuts before year-end and seem increasingly confident in a third, even as the central bank’s quantitative tightening effort in the close. A still more dramatic stimulus seems far apart.
With that on the table, the capital markets may focus on the negative implications of US data on global growth prospects and thereby based sentiments. That might see cycle crude oil prices pressured alongside stocks. FxPremiere Group sees the analysis on the Stocks increase awareness on its downward spiral.
The implications for XAU gold prices may be a bit more hard to notice out. Yields are likely to drop even more amid risk-off environment, offering support. That could be offset if the US Dollar signal manages to capitalize on demand now that investors’ Federal Reserve outlook is about as it will probably get in the near term level.
GOLD TECHNICAL ANALYSIS
Gold prices continue to push vs resistance marked by Febr swing hight 1346.77. Breaking above it daily closing basis opens the door to test a trend-defining barrier in the 1357.53-66.09 area. Alternatively, a turn below support in the 1323.39-26.29 zone targets the 1303.72-09.11 region.
CRUDE OIL TECHNICAL ANALYSIS
Crude oil prices continue to idle at support in the 50.30-51.37 area. A daily close below that sets to challenge a barrier in place since September 2015 in the 42.00-43.20 zone. A rebound above the upper layer of near-term resistance at 55.74 exposes the 57.24-89 regions next stage as Crude Oil Prices May Drop.
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The post Crude Oil Prices May Drop as Soft US Data appeared first on Direct Forex Signals.
