Oil and more...

Oil and more...

Oil:

Crude has been rocketing higher after positive news flow with regards to omicron. Early evidence from South Africa indicates that ICU and oxygen usage are lower than previous waves at similar points on the timeline as well as those in hospital being largely unvaccinated. Based on this small sample size of evidence (which makes me still cautious) this leads one to believe omicron seems more transmissible, but less severe. Fauci (Biden’s Chief Medical Adviser) also shared optimism over the weekend stating that early signals show not a whole lot of severity. GlaxoSmithKline Plc also announced from their recent research that their Covid-19 antibody treatment is effective against mutations in omicron. Risk assets, which oil is falls into got a boost from this and current price action indicates some hot money has flowed back into the black liquid. Adding fuel to the bullish fire we had news that Iran-US Nuclear talks have stumbled a bit.

Looking at the daily chart, technicals are strong with an oversold bounce having taken place with $68 support holding. Price is now above its 200-day SMA. Targets wise, on the upside the 21-day EMA around $76 and $78 will be important. On the downside $73.5 (just above the 200-day SMA) will be key.

Oil:  - 1

AUDUSD:

The RBA left their policy settings unchanged as expected by the market. On the technicals, looking at the 1-hour chart here we can see price is facing some resistance in the form of the intersection of the 200 period SMA, downtrend line and 61.8% Fibonacci level. The RSI is in overbought territory. Could we see a dip lower towards the 0.705 area between the 21 period EMA and the 50 period SMA. On the upside 0.715 would be important.

Oil:  - 2

EURJPY:

EURJPY on the 1 hour chart has been fluctuating between the 128.5 and 127.5 range bounds. Keep this one on your radar if you like playing the range.

Oil:  - 3

Luke Suddards

Luke Suddards is a Research Strategist generating valuable insights for Pepperstone's growing client base through his unique analysis, trade ideas and risk management strategies. Luke obtained a Bachelor of Commerce undergraduate degree in Economics and Finance, followed up with a Postgraduate Honours degree in Finance - achieved with cum laude. His academic background, along with numerous internships across the finance sector, has provided him with a broad and robust understanding of financial markets.

Luke started his own market analytics and financial education company, which entailed providing multi-asset analysis for retail and institutional clients. Having written his own book on technical analysis and trade strategy development, Luke knows how to leverage the tools of technical analysis to maximize one's trading success. His analysis style is best described as an event-driven fundamental and technical hybrid strategy. During lockdown, Luke began producing a daily G10 & EM FX global macro research note as well as sharing his market views in a daily sales call with 20+ experienced strategists from London. Having grown up in South Africa, an emerging market, Luke has unique experience and insight into the key macro and micro drivers behind the volatility typically seen in developing countries. This will be beneficial for clients wanting to trade more exotic FX pairs.