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Commodities Trading Ideas & Charts

Drop in Crude Stockpiles is Causing Oil Future to Settle Higher

August West Texas Intermediate Crude oil futures closed at $72.94 a barrel, up $0.74 or nearly 1%.

Brent crude futures were trading at $74.19 a barrel, up $0.76 or 1.03 percent.

Crude stocks in the United States declined by 6.866 million barrels last week, significantly more than the predicted reduction of 4.03 million barrels, according to data issued by the US Energy Information Administration (EIA) this morning.

Distillate stockpiles surged by 1.616 million barrels last week, much exceeding the 171,000 barrels projected gain, while gasoline inventories fell by over 6 million barrels, about three times the predicted reduction.

According to a report released late Wednesday by the American Petroleum Institute (API), oil stocks in the United States decreased by 8.0 million barrels last week.

Since demand fell during the corona virus outbreak, OPEC+ has been limiting supply for more than a year. Investors are now concerned that the lack of a new supply agreement will force big oil producers to ramp up output much more quickly.

(Source: Rtt News)

General Advice Warning

Any advice/ information provided is general in nature only and does not take into account the personal financial situation, objectives or needs of any particular person.

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Currencies Trading Ideas & Charts

Ethereum Emerging As the Next Big Crypto

Bitcoin’s popularity seems to be going down

Bitcoin is viewed as a gold substitute, but Ethereum is viewed as a supercomputer upon which additional crypto’s can be built. Ethereum’s designers have already stated that they are working on a more energy-efficient successor to the cryptocurrency, which might be released later this year.

The more interesting fact here is that, while the number of active Ether addresses has increased, the number of active Bitcoin addresses has decreased. This indicates that Bitcoin investors are considering alternative crypto currencies as long-term investments.

Reasons for the decline in Bitcoin’s popularity

Some possible explanations include China’s restriction on Bitcoin mining and environmental concerns highlighted by a number of people, including Tesla CEO Elon Musk, who confirmed that his company will not accept Bitcoin payments until it becomes more energy efficient. Neither Musk nor Tesla, on the other hand, have sold any of their Bitcoin holdings thus far.

Crypto aficionados remain optimistic that Bitcoin will recover from its present lows, as it has in the past. The coin has been around for nearly a decade and has shown to be durable. This is the first time it has been challenged by another cryptocurrency. It will also be intriguing to watch if Ethereum can keep up the momentum it has gained in recent days.

(Source: India Today)

General Advice Warning

Any advice/ information provided is general in nature only and does not take into account the personal financial situation, objectives or needs of any particular person.

Categories
Currencies Trading Ideas & Charts

AUD/JPY Price Analysis: Bear Maintains Control below 83.00

For the previous two weeks, the AUD/JPY has been trading in a price band between 82.80 and 84.20 on the daily chart.

Daily candle stick chart Price action

If price falls below the intraday low of 82.69, it may try the 82.50 horizontal support level before testing the June 21 low of 82.13.

With a bearish crossover, the Moving Average Convergence Divergence (MACD) indicator is in the oversold zone. Any drop in the MACD could amplify the bearish trend.

Bears in the AUD/JPY would look to test the 81.99 level, which was reached on February 26.

Alternatively, if price reverses course, it might return to the 83.00 horizontal resistance level, then to the 83.35 high set on June 30.

A daily close above 83.35 would allow the 83.50 horizontal resistance area to open up.

(Source: FXSTREET)

General Advice Warning

Any advice/ information provided is general in nature only and does not take into account the personal financial situation, objectives or needs of any particular person.