The market takes breath after the long rally. What opportunities do traders have today?
Market movers on June 8
Oil prices surged after successful OPEC+ meeting
OPEC+ members have signed a significant deal to cut the oil supply by 9.6 million barrels a day next month. In addition, any country that failed to fully implement output cuts should compensate it during next months. Also, keep in mind that countries a reopening and demand is recovering. That all played well for oil prices: WTI oil opened today at $40 a barrel and Brent oil – at $43. It’s the highest level for over three months! Here below you can see how U.S. Energy Secretary Dan Brouillette welcomed the deal on Saturday.
Let’s look at the Brent oil chart. It’s headed towards 50% Fibonacci retracement level at $45. And, this price is likely to be reached soon. The next retracement level will be at $51.5. Support levels are $39 and $36.
S&P 500 is aggressively climbing up
First of all, look at the chart. You’ll see really great performance of S&P 500. The price has passed $3190. If it crosses the retracement level at $3250, it will clear the way up towards $3335. Support levels are 3110 and 3000. What is the reason of such a fast growth? The reason should be the optimistic market sentiment as economies are reopening.
Gold is recovering its losses
The recent drop of the shining metal seems to be in the process of restoration: XAU/USD is one step away from testing $1,700. Noting the cloudy status of the US-China relations, we are likely to see that cross upwards pretty soon.
The market sentiment deteriorated amid increasing virus cases in the USA and Australia. Investors prefer safe-haven assets like gold, the US dollar and the Japanese yen.
The overall market sentiment was mixed after the USA recorded the largest increase in virus cases since May 9. The data even offset the better-than-expected NFP.
Riskier currencies and stocks are in favor of investors. Surprisingly, gold rallies too. Let’s have a closer look.
Congratulations! Gold has just opened a new era... or, rather, reopened...
Canada will publish the employment change and the unemployment rate on July 10, at 15:30 MT time.