Another day without much data on the subject of the US-China trade war helps calm the sentiment, which is used by the USD to the accompaniment of growing debt yields. The stock market in Asia is, however, in mixed moods, and crude oil remains under the influence of uncertainty ahead of the OPEC summit.
Wednesday trading on Wall Closed to the benchmark and the lack of direction is reflected in the news in Asia. Japanese Nikkei 225 grows almost 1.0%, but the Chinese Shanghai Composite drops by 0.4%. In the last hours, it was silent on the subject of the US-China trade war, but it is not enough for unhampered optimism to return. In spite of this, silencing the risk aversion shifts attention to fundamentals. The optimistic speech of Fed Powell president in Sintra on Wednesday is helping US Treasury yields rise. The profitability of the 10-year-old is growing to 2.94% today, which supports USD. USD/JPY grows to 110.70, and EUR/USD again turns back to 1.1550.
On Thursday 21st of June, the main events of the day are the Interest Rate decisions by Swiss National Bank and the Bank of England. Both central banks are expected to leave the interest rates unchanged at -0.75% and 0.50% respectively. Later, during the US session, the global investors should pay attention to ADP Non-Farm Employment Change data from Canada and Philadelphia Fed Manufacturing Index and Unemployment Claims data from the US.
Crude Oil analysis for 21/06/2018:
Overnight, WTI crude oil calmed the trading conditions close to the level of 65.5 USD, but nervousness does not let go of quotations by contradictory signals from OPEC before Friday's meeting of the cartel. Saudi Arabia is trying to convince the other members to increase production. Iran, the biggest opponent of the proposal, today announced that it can agree to slightly increase the extraction target, which increases the chances of agreement. This market is worth watching now as the situation is changing very quickly and the price is reacting to every rumor.
Let's now take a look at the Crude Oil technical picture at the H4 time frame. The recent rally was capped at the level of 66.50, which is a technical resistance level. Moreover, there is a golden trend line just above it, which makes this level even harder for bulls to break through. After the rally, the price dropped towards the level of 65.50 a currently is hovering around it as the global investors await the news from the OPEC summit. The next important support is seen at the level of 64.55. Please notice, that since the top at the level of 72.84 the market keeps making the series of lower highs and lower lows which are clear indications of a down trend in progress.