WTI rallies, gold falls on US debt ceiling optimism while orange juice holds onto gains
Outlook on WTI, gold and orange juice as US debt ceiling negotiations point towards resolution.
WTI rallies on US debt ceiling optimism
WTI rallies on hopes that the US government might agree to a debt ceiling this weekend. WTI has broken through its April-to-May downtrend line at $71.44. It now targets last week’s high at $73.82 and the 55-day simple moving average (SMA) at $74.93. Potential slips should find support in the $71.75 to $71.66 region. It is where the last few days highs were made. A bullish bias should be maintained while Monday’s low at $69.39 underpins.
Gold slips through support line on hopes of US averting a default
The more positive tone regarding US debt ceiling negotiations has led to risk on sentiment and pushed the gold price lower. The mid-April low at $1,970 is about to be reached. Failure there would push the February high at $1,959 to the fore, ahead of the April low at $1,950.Resistance sits around the minor psychological $2,000 mark. While the next higher $2,005 to $2,009 zone caps, further weakness looks likely.
Orange juice resumes its medium-term uptrend
Front month orange juice futures have bounced back from their $238.07 six-week low. They are currently flirting with the 55-day simple moving average (SMA) at $254.20. A rise above this week’s high at $255.33 looks probable and would target the $260 region. Together with the one-month resistance line at $263.50 it is expected to offer resistance over several days. Only a rise above the early May high at $271 would confirm the resumption of the medium-term uptrend. Minor support lies between Wednesday’s low and last Wednesday’s trough at $245.26 to $243.59. While the next lower $238.07 current May low holds, an upside bias remains in play.
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