WTI
Oil prices stabilized today following a robust first-quarter performance, with West Texas Intermediate (WTI) hovering above $83 a barrel and Brent for June holding firm near $87 a barrel.
The positive sentiment stems from signs of a nascent recovery in China, a significant crude importer, where industrial activity rebounded in March, ending a five-month decline. This rebound in industrial activity in China has bolstered hopes of increased consumption, driving optimism in the oil market.
Given the resilience in oil prices and the positive outlook driven by China's recovery, investors may consider maintaining a bullish stance on oil. An entry suggestion could be to enter long positions in oil futures, particularly WTI and Brent contracts, targeting further upside potential as demand outlook improves.
XAUUSD
XAUUSD prices surged to all-time highs, nearing $2,250 per troy ounce during the early Asian session today. Several factors contributed to this rally, including expectations of a Federal Reserve pivot in the second half of 2024, ongoing geopolitical tensions in the Middle East, and hopes for China's economic recovery. Additionally, the anticipation of easing monetary policy from major central banks further supported gold's upward momentum.
Given the bullish momentum in the gold market and the supportive factors at play, investors may consider taking long positions in gold. Entry points could be identified on pullbacks or consolidations, with targets set at new highs as the precious metal continues its upward trajectory.
USDJPY
The Japanese Yen (JPY) began the new week on a softer note against the US Dollar (USD), albeit lacking significant follow-through momentum. The USD/JPY pair remains range-bound, reflecting a cautious market sentiment. The Bank of Japan's (BoJ) stance on further policy tightening, coupled with prevailing risk-on sentiment, has kept the JPY under pressure.
From a technical perspective, the pair continues to consolidate within a bullish range, with the 151.00 level emerging as a key support. However, a break below the 150.85-150.80 support zone could expose lower support levels around 150.25.
Given the range-bound nature of USD/JPY and the prevailing bullish bias, traders may consider initiating long positions near the support levels mentioned above, with targets set at recent highs. However, caution is warranted, and traders should closely monitor any developments that may impact risk sentiment or central bank policies.
Conclusion
In today's analysis, oil prices stabilized following a solid first-quarter performance, supported by signs of a recovery in China's industrial activity. Gold surged to all-time highs, driven by expectations of a Federal Reserve pivot and geopolitical tensions, while the USD/JPY pair remained range-bound amid cautious market sentiment.
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Paraphrasing text from FXStreet, and Bloomberg all rights reserved by the original author.
