FOREX: Chinese Yuan Extending Winning Streak, Fresh 3-Year USDCNH Lows

Recent weakness in WTI futures is for now, considered corrective. The contract traded through the 20-day EMA, at $98.00. Attention for now is on support at the 50-day EMA, at $86.79. A clear break of the 50-day average is required to highlight a stronger short-term reversal. On the upside key resistance and the bull trigger has been defined at $117.63, the Apr 7 high. Clearance of this hurdle would confirm a resumption of the uptrend. Gold is in consolidation mode. Recent gains appear to be corrective, however for now, a short-term bull cycle is intact. The metal has pierced the 50-day EMA, at $4779.6. This signals scope for an extension towards $4914.9, a Fibonacci retracement point. Clearance of this level would open the $5000.0 handle. Initial firm support to watch lies at $4554.2, the Apr 2 low. A break of this level would be bearish.

• WTI Crude down $2.46 or -2.48% at $96.92
• Natural Gas down $0.03 or -0.99% at $2.601
• Gold spot up $47.03 or +0.99% at $4787.06
• Copper up $7.05 or +1.17% at $612
• Silver up $2.51 or +3.32% at $78.0811
• Platinum up $21.83 or +1.05% at $2096.33

EuroStoxx 50 futures continue to trade closer to their recent highs. The contract has traded through both the 20- and 50-day EMAs, paving the way for a climb towards 5945.47, a Fibonacci retracement point. Note that a break of 5945.47 would expose the key resistance and bull trigger at 6143.00, the Feb 26 high. First key support to watch lies at 5525.00, the Apr 2 low. A move lower and a breach of this support would highlight a reversal. A strong rally in S&P E-Minis last week and a fresh cycle high yesterday, highlights an extension of the reversal that started Mar 31. Note that trend signals remain bearish and for now, this suggests gains are corrective. A continuation higher would open the 7000.00 handle next. Key medium-term resistance and the bull trigger is at 7096.50, the Jan 28 high. Initial key support to watch lies at 6567.00, the Apr 6 low.

• Japan's NIKKEI closed higher by 1374.62 pts or +2.43% at 57877.39 and the TOPIX ended 32.26 pts higher or +0.87% at 3755.27.
• Elsewhere, in China the SHANGHAI closed higher by 38.067 pts or +0.95% at 4026.625 and the HANG SENG ended 211.47 pts higher or +0.82% at 25872.32.
• Across Europe, Germany's DAX trades higher by 250.62 pts or +1.06% at 23994.68, FTSE 100 higher by 28.45 pts or +0.27% at 10611.29, CAC 40 up 59.25 pts or +0.72% at 8295.65 and Euro Stoxx 50 up 61.37 pts or +1.04% at 5966.91.
• Dow Jones mini up 86 pts or +0.18% at 48512, S&P 500 mini up 16.75 pts or +0.24% at 6939.75, NASDAQ mini up 117 pts or +0.46% at 25660.25.

SX7E (15th May) 260/270/280c fly 1x3x2, bought 1.8 in 3k.