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Forex Today: Crude Oil, Agricultural Commodities Bullish

By Adam Lemon

Adam Lemon began his role at DailyForex in 2013 when he was brought in as an in-house Chief Analyst. Adam trades Forex, stocks and other instruments in his own account. Adam believes that it is very possible for retail traders/investors to secure a positive return over time provided they limit their risks, follow trends, and persevere through short-term losing streaks – provided only reputable brokerages are used. He has previously worked within financial markets over a 12-year period, including 6 years with Merrill Lynch.

Crude oil and several agricultural commodities are hitting or remain close to new long-term highs.

  • WTI Crude Oil remains bullish and not far off its recent 7-year high price, making it attractive to trend traders. Some analysts see Russia/Ukraine tensions as helping keep the price of crude oil high.

  • Global stocks mostly rallied during the first Asian session of this week, led higher by a rally in the Chinese technology sector. However, the world’s major stock market index, the S&P 500, closed Friday for the sixth consecutive day below its 200-day moving average, trading into correction territory, indicating that there may not be a sustainable bullish environment for global stock markets.
  • In the commodities markets, several agricultural commodities such as corn, soybeans, and cotton continue bullishly breaking to new high prices. These may be good long-term trend trades on the long side.
  • In the Forex market, markets ended last week in risk-off mode but we have seen a small risk recovery since this week opened. Today, the New Zealand dollar is the strongest major currency, while the Japanese yen is the weakest. This may not last long as the true long-term trend in the Forex market is in favor of the US dollar.
  • Major cryptocurrencies are falling weakly. Bitcoin and Ethereum are again trading close to pivotal levels. This suggests short breakdown trades in crypto may arise as trading opportunities in the near future.
  • It is expected that the Reserve Bank of Australia tomorrow will leave its interest rate unchanged, but announce an imminent end to its QE (asset purchase) program and indicate its next rate hike for Q3 2022. The Australian stock market fell in Monday’s trading.
  • Daily new coronavirus cases globally fell last week for the first time in two months, suggesting that the omicron variant wave may have already peaked, although it is too early to make that call with real hope of accuracy.
  • It is estimated that 61% of the world’s population has received at least one dose of a coronavirus vaccination.
  • Total confirmed new coronavirus cases worldwide stand at over 375.2 million with an average case fatality rate of 1.51%.
  • The rate of new coronavirus infections appears to now be increasing most quickly in Algeria, Armenia, Austria, Bahrain, Bangladesh, Belarus, Bhutan, Brazil, Bulgaria, Chile, Croatia, Czech Republic, Denmark, Egypt, Al Salvador, Estonia, France, Georgia, Germany, Guatemala, Hungary, Iran, Iraq, Israel, Japan, Jordan, South Korea, Kosovo, Kuwait, Latvia, Lebanon, Liechtenstein, Lithuania, Luxembourg, Moldova, Netherlands, North Macedonia, Norway, Oman, Pakistan, Paraguay, Poland, Portugal, Romania, Russia, Singapore, Slovakia, Slovenia, Sweden, Switzerland, Turkey, the Ukraine, Uruguay, and Uzbekistan.
Adam Lemon
About Adam Lemon

Adam Lemon began his role at DailyForex in 2013 when he was brought in as an in-house Chief Analyst. Adam trades Forex, stocks and other instruments in his own account. Adam believes that it is very possible for retail traders/investors to secure a positive return over time provided they limit their risks, follow trends, and persevere through short-term losing streaks – provided only reputable brokerages are used. He has previously worked within financial markets over a 12-year period, including 6 years with Merrill Lynch.

 

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