Oil prices continue to march higher. Despite initial worries that the recent surge in COVID-19 cases in India could impact demand from the world´s third-biggest oil importer, the optimistic outlook from OEPC+ helped prices to rebound quickly. Traders are betting that a healthy global economic recovery in 2021 will push Oil to new highs. The risk that there could be an uneven recovery – which could seriously impact demand – remains present.
However, in the short-term, further gains appear likely. USOIL recently broke above a key resistance level at $64.35 and the next major hurdle will be the 78.6 % Fibonacci retracement of the March 2021 decline, which lies at $65.70. Should USOIL manage to clear this hurdle, little stands in the way of a continuation of the rally towards the 2021 high at $68.
The Copper rally is starting to look a bit stretched in the short-term, and the negative RSI divergence on the Daily chart is a warning sign that there could be a pullback before the rally resumes. Given the rapid rise in recent days, a retracement could be healthy. Traders are likely to keep an eye on the $4.3715 level for opportunities to buy the dip. Global commodity prices are expected to rise further this year as markets remain in a buoyant mood amid strong economic growth. However, much will depend on the course of the pandemic, as well as central banks and governments keeping the support measures intact.
Bitcoin´s recovery rally has lost momentum and investors are getting increasingly nervous. Resistance at $56.4k capped the topside so far and imminent resistance is seen at the falling trendline from the all-time high. To the downside, the key level to watch is $50k; a breakout below this level could spell trouble for the cryptocurrency as momentum selling would likely intensify.
GBP/USD has been stuck in a 1.3670-1.4020 range for quite some time now. However, the odds of a breakout to the upside have improved as a dovish Fed should keep the Dollar under pressure in the near-term. At the same time, the UK economic outlook has improved, boosted by a successful vaccine rollout and extended state support. Should the currency pair overcome the 1.4020 hurdle, a rally towards the 2021 high at 1.4240 appears likely. To the downside, imminent support is seen at the rising trendline from the April low, followed by 1.3860 and 1.3825. As long as the latter support level remains intact, GBP bulls continue to have the upper hand.
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Bitcoin decline has all eyes on cryptocurrencies; With tech stocks under pressure, investors turn to value; USD strength remains a key theme