Brent & WTI Fall on News…But Wait! DAX and ASX Approaching Death Cross Status. USD Stronger…Will this Continue?

In today’s GCI Market Outlook, let’s take a look at Forex Trading on the EURUSD, ASX200, the Nikkei, the FTSE100, the NASDAQ, the DAX40, WTI, and Brent Crude Oil.

Just a reminder that these videos are intended as educational, we are only observing current market conditions, and these are not to be considered as trading advice.

An utterance by the White house saw the price of WTI and Brent Crude falling today but, we all know that this could change at any moment.

The price of Brent Crude has stabilised in this demand zone between $110 and $113 and price action has broken below this lower trend line.

Again, trading crude during a war, try not to follow the technicals…you have to listen to the news.

For example, any news about the flow of tankers through the Strait of Hormuz or the targeting of large refineries will affect the price of crude…up and down.

This news from the White House also helped the US indices as we see a bit of a pullback on all of them including the NASDAQ.

Of course, we still have a Death Cross watch on all the global indices and the NASDAQ is edging a bit closer as the 50-period SMA is diving down toward the 200.

However, be aware that, at the moment, the 200-period SMA is still sloping upward which does not strongly indicate a full bearish signal on the indices.

As you know, we have been watching the German DAX40, and now, we are definitely seeing a downward-sloping 200-day SMA and the 50-period is getting dangerously close.

Watch this space!

The Australian ASX200 is not much better.

On the positive side, we see the Japanese Nikkei…and the UK’s FTSE100 looking much better with the 50-period SMA acting as a dynamic line of support for many months.

So, with all this going on, why are we seeing a stronger USD?

There are many reasons, and 2 include the sell-off of equities, which results in demand for USD.

As well, most of the crude market is transacted in USD, so when any foreign company needs to buy crude, which is going on all of the time, at highly inflated prices, they need to exchange their currency for USD.

As we know, higher demand means higher value, so USD is climbing…for now.

Also, the Fed do not seem too eager to lower interest rates, based on current inflation projections, which will always strengthen the USD.

So, watch out for today’s JOLTS Job Openings, tomorrow’s mix of reports, and Friday’s Non-Farm Payrolls.

Also, today we have Canadian GDP, and we see, for the most part, CAD weakness, despite the high cost of crude.

That’s all for now.

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