Commodities climb higher as the USD weakens following the FOCM Minutes, maintaining the bullish trends set earlier this week.
Gold crosses above $1306.60 pivot
After an intraday double top around $1314 and a dip below the small pivot zone at $1306.60, Gold proceeded to test the major handle at $1300 and reversed in this area. The configuration of the trend is bullish, with higher highs and higher lows; consequently a rally above $1314 is expected next.
Resistance levels: $1317; $1321; $1334
Support levels: $1306.6; $1300; $1294
Silver rebounds from $19.60 support
After a slow bullish consolidation that ended around $21.21, Silver couldn’t cross above 100 Simple Moving Average (on both Daily and 4H timeframes). Today the pair fell towards the original support and bounced several cents away from it, at $19.60. A strong close above $19.90-$20.00 area leads to the formation of a bullish Pin bar price action pattern on the Daily chart, which suggests more bullish action come tomorrow, if $20.21 fails to act as resistance again.
Resistance levels: $20.02 (green line – 100 Moving Average); $20.21; $20.59.
Support levels: $19.56; $19.11; $18.64
Crude Oil heads towards $105.00 – $105.20
Sweet Crude Oil Futures for delivery in May broke outside the triangle chart pattern yesterday around $101.30. Within hours price was already stable above the previous high at $102.21. The rally continued today without any corrections. Current daily high is $103.74. Before price heads towards $105 – $105.20 resistance, a re-test of the previous support at $102.21 is not excluded, with the level turning into support this time.
Resistance levels: $104.15, $105.00; $105.20.
Support levels: $102.21; $100.18, $98.85.
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Prepared by Alexandru Z., Chief Currency Strategist at Capital Trust Markets