Trumps Twitter sends Crude oil up… hope or real? COVID-19 more than 1M infected. U.S. Non-farm not as surprising. DXY, Brent, Crude, Gold, EUR/USD, GBP/USD, USD/JPY. Market update
President of the United States Donald Trump surprised the oil market with an unexpected tweet, stating that he “spoke” to his “friend MBS (Crown Prince) of Saudi Arabia”, who then in turn spoke to Russian President Vladimir Putin and agreed to oil production cuts of about 10 million barrels or more. Russian Kremlin denied that any agreement has been reached, while Saudi Arabia mentioned that they are willing to meet and discuss oil market stabilization, but stopped short of announcing any deals. Saudi Arabia also mentioned that they are willing to come to an agreement if all nations including the United States agree to the production cuts. OPEC and allies are preparing for an emergency meeting on Monday, although it’s still unclear as to who will attend.
As a result both Brent oil and Crude oil experienced bullish momentum.
Brent oil on a DTF broke above 13EMA and currently trading around 33.23 per barrel.
Crude oil on a DTF also broke above 13EMA and currently trading around 27.0 per barrel after reaching a high of 27.39 on Thursday.
According to Johns Hopkins University, the number of global COVID-19 infections is 1,030,628, death toll 54,137.
Gold is trading slightly higher. After making a high of 1623.167, gold is trading around 1618.356 per troy ounce. Resistance is around 1635, support around 1600.
Earlier today, Euro Markit Composite PMI for March was release although within range, slightly below forecast at low level of 29.7, below 31.4 forecast and 51.6 previous fact.
United Kingdom Composite PMI for March was also released slightly below forecast at 36.0, compared to 36.2 forecast and 53.0 previous fact.
Unsurprisingly United Sates Nonfarm Payrolls for March came in at a staggering -701K, compared to -100K forecast and +245K previous fact, considering the reports earlier this week. U.S. unemployment has hit 4.4% compared to 3.8% expectations and 3.5% previous fact. U.S. Markit Composite PMI for March 40.9. ISM non-manufacturing for March on the other hand remains above the critical level, released at 52.5, compared to 44.0 forecast and 57.3 previous fact.
The United Sates Dollar Index (DXY) is trading bullish around 100.70.
EUR/USD on a Daily TF met all three of our support targets and currently trading around 1.07860, recording a 5-th day of decline for the Euro against the Greenback.
Resistance: R1 1.08272, R2 1.08685, R3 1.09300.
Support: S1 1.07500, S2 1.07235, S3 1.07.
GBP/USD on a Daily TF dropped down to our support target and using 13EMA as support around 1.22555.
Resistance: R1 48EMA and 38.2% Fibo 1.25328 – 1.25445, R2 200 EMA 1.27374, R3 50% Fibo 1.28951.
Support: S1 23.6% Fibo 1.21108, S2 1.19200, S3 1.17768.
USD/JPY on a Daily TF also met all of our resistance targets and currently trading around 108.558, slightly below 48EMA.
Resistance: R1 200EMA 108.830, R2 109.500, R3 110.00.
Support: S1 13 EMA 108.380, S2 107.848, S3 107.500.