Jan 23 – Top Economic Events for Tuesday as Davos Begins
Rowan Crosby • 2 min read
It was a great start to the trading week for FX Leaders as we scored three winners. As the week rolls on we have some key economic releases to watch out for including the ECB Interest Rate decision, so things should start to get busy. We also have the World Economic Forum at Davos, which has business and political leaders from across the world gathering to discuss economic issues.
Economic Events Watch List
Eurozone – EUR
ZEW Economic Economic Sentiment – ZEW gives us a gauge into the six-month economic outlook. Anything above zero is a positive result. Expectations are for a reading of 17.8. A beat will see an increase for the EUR.
Crude Oil – CL
API Inventories – Crude Oil inventories give us an indication of the current level of supply and demand. Data is from The American Petroleum Institute and we are expecting a draw of -5.121M. Of recent times we have been seeing a drawdown in inventory levels. This indicates that there is a degree of demand around.
Crude Oil (CL) – The Trend is Continuing
One of the key characteristics of commodities is that they trend strongly. From a technical perspective in Crude Oil, it’s worth watching the 50-SMA on the daily chart. If price is above that level then we should really be looking to trade to the upside. As that is the direction of the underlying trend.
We can also add to that the fact that we are seeing inventory drawdowns. That means fundamentally there is a reason for the uptrend.
There also appears to be a bullish pattern that is forming on the CL chart. That means there is the potential for more upside to come.
Key Support and Resistance Levels
63.00 (Key Level)
63.00 has been a level that has held up previously in CL. Given that the trend is to the upside, that appears to be a good level to be buying, looking for a move to the upside.
There is always a risk entering CL ahead of inventory data. So for those looking for a more conservative entry point, you should consider waiting for all the data releases associated with Crude prior to entering.