Forecasts & Analysis

The majors make an early move to bring resistance levels into play. A move back through early highs would be needed, however, to support further upside.

It’s a bullish start to the day as Sunday’s late rally spilled into this morning. A move back through early highs would support a breakout…

Since the Fed is not likely to offer any surprises, the focus this week will remain on the economic impact of the coronavirus.

Risk appetite slumps early, with concerns over the coronavirus hitting the markets.

Since the coronavirus conditions worsened over the weekend, we expect the WTI and Brent crude oil markets to open sharply lower.

According to the CFTC Commitments of Traders report for the week ended January 21, net shorts for natural gas futures rose.

The emphasis this week will be on safety. Given the worsening coronavirus problem, I expect global stock markets to open sharply lower and the Japanese Yen to spike higher as investors seek safe-haven protection.

Traders are going to continue to debate whether the RBA and RBNZ should cut rates in February, but last week’s economic data has cooled thoughts of automatic cuts.

A combination of long-liquidation and short-selling is driving prices lower so I don’t expect smart buyers to just step in front of the downside momentum.

The early direction on Monday will be determined by trader reaction to the short-term 50% level at $1581.20.