Asian stocks were mixed on Monday as investors mulled on the possibility of more fiscal stimulus plans from the EU and U. The EU summit shows that the leaders are haggling over a plan to further stimulate the economies. In the United States, the Congress is set to begin debating a new aid package this week, as several states implement fresh lockdown measures to curb the virus.
USD held onto gains against most currencies as worries on the coronavirus deepened. The virus has claimed over 140000 US. lives in total. Although Wall street remains upbeat, sentiment is turning grim in response to the upsurge in the Covid-19 cases. As some states are back to lockdown measures, this worry could deepen.
Copper prices dipped, as escalating Sino-US tensions and rising number of Covid-19 infections dampened hopes of a quick economic recovery and demand for the metal. Elsewhere, The Trump administration is considering a ban on travel to the United States for all members ofthe Chinese Community Party and their families, which could heightened existing geopolitical tensions and rattle investors’ confidence further.
Gold prices edged lower as a result of a strong US dollar. However, the losses were limited as the surging number of Coronavirus cases and the economic damage that it brought about, buoyed demand for the safe-haven metal. In the long run, gold could continue to thrive in the low interest rate environment as it is often seen as a hedge against inflation and currency debasement.
Oil prices drifted lower, further extending its losses from last friday. This is most likely due to the the virus raging unchecked across multiple countries. With new outbreak now happening yet again in Hong Kong and more cases are added in California, concerns about the lack of oil demand is now on the rise. Further, OPEC+ is loooking to return supply back to the market in the following month. The Loonie, weakened in line with oil prices and underperformed against a weaker USD.
Technical & Trade views
USDCAD (Intraday bias: bullish above 1.3588)
We turned bullish as price has surpassed our upside confirmation where the 61 fib retracement and 78.6 fib extension are. Price is likely to bounce off the level towards 1st resistance where the horizontal swing high is. Ichimoku also indicates bullishness.
UKOIL (Intraday bias: Bearish below 42.71)
Oil drifted lower and broke below moving average from last Friday as expected. Price now holding below descending trendline resistance and moving average. MACD below 0, showing room for further downside momentum as well. A break below downside confirmation at 42.71 will open further drop towards 1st support at 42.36 and possibly even 41.81.
XAUUSD (Intraday bias: Bearish below 1811.44) 
Price is facing bearish pressure from our first resistance level, in line with our horizontal swing high resistance, descending trend line, 61.8% fibonacci extension and 78.6% fibonacci retracement where we could see a further drop below this level.
XCUUSD (Intraday bias: Bearish below 2.89507)
Price is facing bearish pressure from our first resistance in line with our horizontal pullback resistance and 50% fibonacci retracement level where we could see a further drop to our first support target. Stochastic is showing signs of bearish pressure as well.
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Desmond Leong runs an award-winning research firm (The Technical Analyst finalists 2018/19/20 for Best FX and Equity Research) advising banks, brokers and hedge funds. Backed by a team of CFA, CMT, CFTe accredited traders, he takes on the market daily using a combination of technical and fundamental analysis.