Hello Friends, I hope you all are doing fine. There’s a lot of Open Interest Exhaustion, so a big change in trends are on the way. Dollar bullishness is every day more apparent. Let’s check what COT Data is telling us this week.
Open Interest Exhaustion
While I said we have a lot of OI Exhaustion this week I am showing you only the most interesting.
A selling(commercials) | buying (non-commercials) exhaustion may soon follow, along with a trend change.
GOLD | XAUUSD | WEEKLY
Gold is well above the Open Interest Trend Change Threshold, and it’s also a very interesting weekly supply zone. Check this small find the News Summarization tool found for us:
…many big banks lowered their trading limits on the Comex exchange in New York, the biggest gold futures market, creating a lack of liquidity that pushed prices there above prices in London, the main hub for trading physical gold, and elsewhere. “This makes the yen very attractive, especially against the pound and dollar, where real rates are not just negative but in the case of the Fed, they are actively seeking lower rates out.
The divergence created a lucrative opportunity for banks who have the infrastructure to buy metal outside the United States and deliver it to New York to profit on the difference, especially during a pandemic, when investor demand has pushed gold prices to record levels of around $2,000 an ounce. Reduced trading by large banks also drove prices of later-dated futures far above near-dated ones — an opportunity for those with gold to sell it forward for more than enough money to cover the cost of storage and capital.
CME provides little data showing activity of individual actors on its market, but numbers that are available show banks including Goldman Sachs, Morgan Stanley and Citi have ramped up trade in gold in vaults registered with the exchange in recent months, either delivering metal or accepting bars which they can sell forward. With profits running high, not only from Comex but also from trading, financing and storing gold outside the futures exchange, some banks are hiring.
SILVER| XAGUSD | WEEKLY
AUDUSD & COPPER | POSSIBLE TOP COT INDEX
A super interesting combinations of signals to AUDUSD and Copper, both assets with a super high correlation. Data is telling us that a top is in place and we should trend lower from here.
- AUDUSD – POSSIBLE TOP
- COPPER – POSSIBLE TOP | BUY EXHAUSTION
This is interesting be know that Australia is a mining country and copper is extremely correlated to AUDUSD
AUDUSD | TRADING PLAN
That’s it my friends! I hope you all can make some money out of this info and if have doubts or want to hear about or currency/commodity leave a reply!