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Crude Oil Closing In on Its Target After Shallow Pullback


Plus, Friday's Employment Situation report had quite an effect on currencies and gold. How will this affect Monday?

The following are the latest daily summaries of my ongoing intraday coverage, providing context to interpret price action. Any prices listed are for a contract's current "front month." Their direction tends to correlate with any ETFs listed for each.

Today's Highlight: Friday's Employment Situation report had quite an effect on currencies and gold, which swung widely during the morning. Will Monday trend, or just be spent absorbing Friday's shock to the system? Regardless, not trending any further would suggest that these extremes will hold for some time.

Dollar Basket
The 79.05 target was attacked ahead of Friday's Employment Situation report. Its reaction down to 78.91 was recovered, and the balance of the session ranged around 79.05. No lower target is in-play.

Mar Contract EC; (NYSEARCA:FXE)
The 1.3635-1.3640 target was already being probed ahead of Friday's Employment Situation report. Volatility around it touched 1.3715. Now back under 1.3635 would signal momentum reversing down.

Apr Contract GC; (NYSEARCA:GLD)
Despite rallying sharply to attack Wednesday's 1685.00 highs up to 1683.00, the reaction to Friday's Employment Situation report sent price plummeting again to 1662.50. And despite probing back above the 1675.00 bounce limit intraday, closing back under 1669.00-1670.00 confirmed the rally attempt's rejection. Still, a second consecutive lower close was avoided, which would have signaled the new downleg underway.

Mar Contract SI; (NYSEARCA:SLV)
Friday morning's rally was retraced entirely, keeping alive potential for the pullback to reach its 30.25 objective.

30-Year Treasury
Mar Contract US; (NYSEARCA:TLT)
Still testing 143-04 resistance at Thursday's close prevented having any confidence in an initially favorable knee-jerk reaction up on Friday's Employment Situation report from gaining traction. The reaction up did probe above 143-18 to 144-13, but still reversed back down to test 143-04 and under 142-26 to put into play 141-26 so long as 143-04 is not recovered.

Crude Oil
Mar Contract CL; (NYSEARCA:USO)
Repeated dipping to 97.00 never gained traction, and a recovery extended Friday back up to test the 98.25 highs, leaving the 99.00 target intact.

Natural Gas
Thursday's test of 3.36 resistance didn't fair any better Friday, and its recovery is still needed to trigger a new rally leg.

Editor's note: Rod's analytical techniques are designed to efficiently identify targets and turning points for any liquid stock or market in any time frame. He applies his techniques live intraday, primarily to S&P futures, at RodDavid .com.
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