• EUR/USD trades above the 100-hour SMA in Asia. 
  • The bulls failed to secure a close above 1.20 on Monday.

EUR/USD’s overnight dip below the 100-hour Simple Moving Average was short-lived. The pair is currently trading above the key SMA located at 1.1925, having printed a low of 1.1923 late Monday. 

Despite the quick recovery to levels above the 100-hour SMA, the immediate bias remains neutral. That’s because the pair is yet to clear the psychological hurdle of 1.20. The EUR bulls failed to establish a foothold above that hurdle on Monday, having faced similar rejection on Sept. 1. 

More importantly, the pair ended up carving a red candle with a long upper shadow. The bias will turn bearish if Monday’s low of 1.1922 is breached. That would shift risk in favor of a drop to 1.18 (Nov. 23 low). 

Daily chart

Trend: Bearish below Monday’s low

Technical levels

 

  • Silver stays mildly bid inside a choppy range between $22.58 and $22.68.
  • Nearly oversold RSI conditions can help bullish candlestick in portraying recovery moves.
  • A confluence of 10-day SMA, three-week-old falling trend line offers a strong upside barrier.

Silver prices take rounds to $22.68, up 0.12% intraday, during Tuesday’s Asian session. The White metal dropped to the fresh low since September 24 the previous day before bouncing off $21.89.

With that, Monday’s daily candle turns out to be a dragonfly doji, bullish candlestick, which also gains support from a nearly oversold RSI line, currently around 34.00.

As a result, the commodity’s further pullback towards the $23.00 threshold can’t be ruled out. However, a 10-day SMA and a descending resistance line from November 09, currently around $23.40, will restrict the quote’s further upside.

It should also be noted that the silver bulls’ dominance past-$23.40 can probe the mid-November high near $25.10.

On the flip side, the $22.00 round-figure and the recent low around $21.90 may entertain the sellers ahead of directing them to September’s low of $21.65.

However, the metal’s further weakness below $21.65 will make it vulnerable towards revisiting the $20.00 psychological magnet and February high near $19.00.

Silver daily chart

Trend: Pullback expected

 

  • WTI keeps recovery moves from $44.51 despite multiple failures to regain $46.00.
  • OPEC to discuss output cut proposal internally, on Tuesday, before discussing it with allies on Thursday.
  • US dollar recovery fades on comments from Fed Chair Powell, Treasury Secretary Mnuchin.
  • China Caixin Manufacturing PMI, API data and OPEC updates will be important to watch.

WTI prints mild gains above $45.00, currently around $45.25, during the early Tuesday’s trading. The oil benchmark dropped to the one week low on the previous day amid the US dollar recovery. However, recent news suggesting a further delay in the OPEC+ decision on output cut helps the black gold buyers to remain hopeful.

Having failed to arrive on any production-linked decision during the Joint Ministerial Monitoring Committee (JMMC), the Organization of the Petroleum Exporting Countries (OPEC) members need one more day of discussion among them and battle the push for the output increase. Following that, the leaders will approach their allies to convey the OPEC+ decision on Thursday, per Reuters.

With the coronavirus (COVID-19) likely to keep the Q4 economics pressured, oil producers are likely jostling over the push to step back from the earlier caps on the flow.

Elsewhere, the US dollar bulls witness another drawback as Fed Chair Jerome Powell and Treasury Secretary Steve Mnuchin both pushed for further stimulus to battle the moderating economic growth during their prepared remark for Monday’s testimony.

Looking forward, China’s November month Caixin Manufacturing PMI, expected 53.5 from 53.6 can offer immediate direction to commodity prices ahead of the weekly inventory data from the industry source, the American Petroleum Institute (API), prior 3.8M. It should also be noted that the US ISM Manufacturing PMI and risk catalysts are extra catalysts WTI trades should watch.

Technical analysis

Unless declining below the August high near $43.10, oil bears are less likely to enter. Meanwhile, upside momentum needs to cross the November high of $46.30 to keep the WTI buyers hopeful.