{"id":59570,"date":"2012-02-28T11:10:11","date_gmt":"2012-02-28T00:10:11","guid":{"rendered":"http:\/\/www.fnarena.com\/index.php\/2012\/02\/28\/risk-appetite-unravelling\/"},"modified":"2012-02-28T11:10:11","modified_gmt":"2012-02-28T00:10:11","slug":"risk-appetite-unravelling","status":"publish","type":"post","link":"https:\/\/staging.fnarena.com\/index.php\/2012\/02\/28\/risk-appetite-unravelling\/","title":{"rendered":"Risk Appetite Unravelling"},"content":{"rendered":"<p>\n\t<strong>Crude Oil, Metals Prices Vulnerable As Risk Appetite Unravels<\/strong><\/p>\n<p>\n\tBy <span>Ilya<\/span> <span>Spivak<\/span>, Currency Strategist, <span>FXCM<\/span><\/p>\n<p>\n\t<u><strong>Talking Points<\/strong><\/u><\/p>\n<ul>\n<li>\n\t\t<strong>Crude Oil, Copper Under Pressure as Risk Appetite Unravels to Start Week<\/strong><br \/>\n\t\t&nbsp;<\/li>\n<li>\n\t\t<strong>Gold, Silver Sold as US Dollar Recovers on Returning Safe-Haven Demand<\/strong><\/li>\n<\/ul>\n<p>\n\tThe emergence of risk aversion at the start of the trading week is broadly weighing on commodity prices. A refusal to boost IMF resources at the <span>G20<\/span> finance ministers&rsquo; summit over the weekend, the sharp run-up in oil prices, and anxiety ahead of a week heavy with event risk (including the second <span>ECB<\/span> <span>LTRO<\/span>, testimony from Fed Chairman Ben Bernanke, and the EU leaders&rsquo; summit) are all contributing to the dour mood. Cycle-sensitive <strong>copper<\/strong> and <strong>crude oil <\/strong>prices are following stocks lower while a pickup in safe-haven flows into the US Dollar is weighing on <strong>gold<\/strong> and <strong>silver<\/strong>.<\/p>\n<p>\n\tLooking ahead, S&amp;P 500 stock index futures are pointing sharply lower to suggest the blood-letting is likely to continue as Wall Street comes online. With that in mind, the US economic calendar may offer a counterbalance to bearish sentiment. US Pending Home Sales are expected to bounce in January after falling the most in three months in December while the Dallas Fed&rsquo;s Manufacturing Activity <span>gauge<\/span> is forecast to hit a one-year high. Greek bailout implementation is likewise in the spotlight, with traders eyeing a <a href=\"http:\/\/www.dailyfx.com\/forex\/fundamental\/daily_briefing\/session_briefing\/euro_open\/2012\/02\/27\/FOREX_Euro_Braces_for_German_Vote_on_Greek_Bailout_Money_Supply_Data.html\">German <span>Bundestag<\/span> vote on the package&rsquo;s terms <\/a>due today.<\/p>\n<p>\n\t<strong><span>WTI<\/span>&nbsp;Crude Oil (NY Close): $109.77 \/\/ +1.94 \/\/ +1.80%<\/strong><\/p>\n<p>\n\tPrices are testing 61.8% Fibonacci extension resistance at 110.04, with a break higher exposing the 76.4% level at 114.25. Near-term support lines up at 106.70, the 50% Fib extension. As we <a href=\"http:\/\/www.dailyfx.com\/forex\/technical\/article\/cross-market_technical_update\/2012\/02\/24\/SP_500_Topping_Still_in_the_Works_US_Dollar_Breakout_Overturned.html\">noted last week <\/a>however, <span>RSI<\/span> studies are at their most overbought since April (the last time Iran-linked jitters inflated crude prices). That was followed by a sharp decline in May, so the threat of a reversal may be rising.<\/p>\n<p>\n\t<img decoding=\"async\" alt=\"\" src=\"http:\/\/www.fnarena.com\/ckfinder\/userfiles\/images\/dailyfx28-2a.jpg\" style=\"width: 700px;height: 379px\" \/><\/p>\n<p>\n\t<strong>Spot Gold (NY Close): $1772.45 \/\/ -8.23 \/\/ -0.46%<\/strong><\/p>\n<p>\n\tPrices continue to consolidate having taken out resistance at 1763.00, the December 2 high that closely coincides with the 23.6% Fibonacci extension level. Near-term resistance lines up at the 1800\/oz figure and is reinforced by the 38.2% Fib. A break higher exposes the 50% level at 1825.68, while a reversal through support targets 1705.35.<\/p>\n<p>\n\t<img decoding=\"async\" alt=\"\" src=\"http:\/\/www.fnarena.com\/ckfinder\/userfiles\/images\/dailyfx28-2b.jpg\" style=\"width: 700px;height: 370px\" \/><\/p>\n<p>\n\t<strong>Spot&nbsp;Silver (NY Close): $35.40 \/\/ +0.05 \/\/ +0.15%<\/strong><\/p>\n<p>\n\tPrices put in a Shooting Star candlestick below resistance at 35.66, the October 28 swing high reinforced by the 38.2% Fibonacci extension level, hinting a pullback may be ahead. Initial support lines up at 34.37, the February 2 top. Alternatively, a daily close above resistance exposes 36.99, the August 9 low bolstered by the 50% extension.<\/p>\n<p>\n\t<img decoding=\"async\" alt=\"\" src=\"http:\/\/www.fnarena.com\/ckfinder\/userfiles\/images\/dailyfx28-2c.jpg\" style=\"width: 700px;height: 368px\" \/><\/p>\n<p>\n\t<strong><span>COMEX<\/span> E-Mini Copper (NY Close): $3.870 \/\/ +0.056 \/\/ +1.47%<\/strong><\/p>\n<p>\n\tPrices remain wedged between support at 3.789 and resistance at 3.909, a barrier reinforced by a rising trend line set from mid-December. A Bearish Engulfing candlestick pattern continues to argue for a broadly bearish bias, with a daily close above the February 9 high at 3.988 needed to neutralize the setup.<\/p>\n<p>\n\t<img decoding=\"async\" alt=\"\" src=\"http:\/\/www.fnarena.com\/ckfinder\/userfiles\/images\/dailyfx28-2d.jpg\" style=\"width: 700px;height: 374px\" \/><\/p>\n<p>\n\tThe views expressed are not <span>FNArena&#039;s<\/span> (see our disclaimer).<\/p>\n<p>\n\tFor real time news and analysis, please visit http:\/\/www.dailyfx.com\/real_time_news<\/p>\n<p>\n\t<span>DailyFX<\/span> provides <span>forex<\/span> news on the economic reports and political events that influence the currency market. Learn currency trading with a free practice account and charts from <span>FXCM<\/span>.<\/p>\n<p>\n\twww.dailyfx.com<\/p>\n<p>\n\t<em><strong>Disclaimer<\/strong><\/em><\/p>\n<p>\n\t<em><u><span>Forex<\/span> Capital Markets is headquartered at Financial Square 32 Old Slip, <span>10th<\/span> Floor, New York, NY 10005 USA.<\/u><\/em><\/p>\n<p>\n\t<em>Trading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before you decide to trade the foreign exchange products offered by <span>Forex<\/span> Capital Markets, LLC, <span>Forex<\/span> Capital Markets Limited, inclusive of all EU branches, <span>FXCM<\/span> Asia Limited, or <span>FXCM<\/span> Australia Limited, any affiliates of aforementioned firms, or other firms under the <span>FXCM<\/span> group of companies [collectively <span>&ldquo;FXCM<\/span> Group&rdquo;] you should carefully consider your objectives, financial situation, needs and level of experience. If you decide to trade foreign exchange products offered by <span>FXCM<\/span> Australia Limited you must read and understand the Financial Services Guide and the Product Disclosure Statement. <span>FXCM<\/span> Group may provide general market information and commentary which is not intended to be investment advice and the content of this email must not be construed as personal advice. By trading, you could sustain a total loss of your deposited funds and therefore, you should not speculate with capital that you cannot afford to lose. You should be aware of all the risks associated with trading in foreign exchange products. Foreign exchange products are only suitable for those customers who fully understand the market risk. <span>FXCM<\/span> recommends you seek advice from a separate financial advisor.<\/em><\/p>\n<p>\n\t<em><span>FXCM<\/span> Group assumes no liability for errors, inaccuracies or omissions in these materials and does not warrant the accuracy or completeness of the information, text, graphics, links or other items contained within these materials. <span>FXCM<\/span> Group shall not be liable for any special, indirect, incidental, or consequential damages, including without limitation losses, lost revenues, or lost profits that may result from these materials. This email is not a solicitation to buy or sell currency. All information contained in this e-mail is strictly confidential and is only intended for use by the recipient. All e-mail sent to or from this address will be received by the <span>FXCM<\/span> corporate e-mail system and is subject to archival and review by someone other than the recipient.&rdquo;<\/em><\/p>\n<p>\n\t<strong>Technical limitations<\/strong><\/p>\n<p>\n\t<strong><span style=\"font-style: italic\">If you are reading this story through a third party distribution channel and you cannot see charts included<\/span>, we <span>apologis<em>e<\/em><\/span><em>, but technical limitations are to blame.<\/em><\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Market analysts at FXCM suggest crude oil and metal prices are now vulnerable as risk appetite is unravelling.<\/p>\n","protected":false},"author":9,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[7],"tags":[23,24,22],"acf":[],"_links":{"self":[{"href":"https:\/\/staging.fnarena.com\/index.php\/wp-json\/wp\/v2\/posts\/59570"}],"collection":[{"href":"https:\/\/staging.fnarena.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/staging.fnarena.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/staging.fnarena.com\/index.php\/wp-json\/wp\/v2\/users\/9"}],"replies":[{"embeddable":true,"href":"https:\/\/staging.fnarena.com\/index.php\/wp-json\/wp\/v2\/comments?post=59570"}],"version-history":[{"count":0,"href":"https:\/\/staging.fnarena.com\/index.php\/wp-json\/wp\/v2\/posts\/59570\/revisions"}],"wp:attachment":[{"href":"https:\/\/staging.fnarena.com\/index.php\/wp-json\/wp\/v2\/media?parent=59570"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/staging.fnarena.com\/index.php\/wp-json\/wp\/v2\/categories?post=59570"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/staging.fnarena.com\/index.php\/wp-json\/wp\/v2\/tags?post=59570"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}