Pure fuel remains to be in correction mode because it dipped to the 50% retracement on the $1.850 mark. Worth motion and technical indicators have but to indicate indicators of a bounce, so a deeper pullback is perhaps due.
If that’s the case, pure fuel may dip to the channel backside round $1.750 or the 61.8% Fib retracement at $1.800. If any of those maintain as assist, the commodity value may get well to the swing excessive at $2.052 or the highest of the channel at $2.100.
The 100 SMA remains to be above the 200 SMA to substantiate that the trail of least resistance is to the upside or that the uptrend is extra prone to resume than to reverse. Worth can be testing the 100 SMA dynamic assist at the moment and might be sufficient to maintain losses in verify.
Nonetheless, RSI has extra room to go south, so value may comply with go well with whereas sellers are nonetheless in management. Stochastic additionally has a little bit of room to maneuver decrease earlier than hitting the oversold area and turning larger. As soon as it does, consumers may return and permit assist areas to carry.
Pure fuel is returning a few of its latest winnings as merchants appear to be reverting to danger aversion once more. US earnings figures have been largely disappointing whereas the reopening of some states aren’t bringing a lot enterprise and shopper exercise as anticipated.
Aside from that, downbeat jobs figures additionally recommend weaker shopper spending for an extended time frame, which implies decrease purchases of heating commodities even whereas extra people keep at house.
It doesn’t assist that summer time months are already beginning to roll in, which additionally means subdued demand for heating. Then once more, producers have already adjusted their output to account for this dip round this time of the yr, so stockpiles won’t be too overloaded.
— to fxdailyreport.com