2020-07-20 • Updated
Since July 8, the gold price has been in a clear sideways channel best visible at the hourly chart. $1 813 serves as the channels’ resistance, and $1 795 - as the support. In broader terms, it will be enough to specify that gold price fluctuates between “roughly below $1 800” and “slightly above $1 810”.
Currently, it is at the upper border of the channel and gives initial signs of a bearish reversal. Nevertheless, we don’t have enough signs so far to be more confident in this reversal, therefore more time is required to verify this assumption. That’s why the suggested strategy is to wait and watch closely how the price behaves in the coming hours/tomorrow around the resistance of $1 813. In any case, keep in mind – this sideways movement will not take long to convert into another bullish advance.
Last week, we noted how tangled the world economic recovery is now, and how that pushes the price of gold higher. Today, even with the European leaders discussing the financial aid measures and brings more hopes to the market, we still have the strategic layout unchanged.
Fundamentally, we have a very bumpy global economic recovery, clouded by resurging virus infections, still on fire in the US. In addition to that, international relations do not make it any better: US-China, US-EU, Australia-China, UK-EU – all of these are importing more tension into the market, and gold rises.
It took approximately one month for the gold price to leave $1 700 below and come to $1 800. With the cloudy economic future of the world, we should see $1 900 by the end of August. That means, in 4-5 weeks we will behold the nine-year-old all-time high beaten and surpassed.
Crude oil futures surged on Monday due to disruptions in Russian refining capacity caused by Ukrainian drone strikes and Moscow's decision to cut output to comply with OPEC+ targets. The West Texas Intermediate (WTI) contract for May settled at $81.95 a barrel, up $1.32, while the Brent contract for May settled at $86.57 a barrel, also up $1.32. Russia instructed...
Bearish scenario: Sales below 80.00 with TP1: 79.60... Anticipated bullish scenario: Intraday purchases above 80.70 with TP: 81.50...
Brent oil is currently on a bullish trend, facing resistance near $84 and supported by the 200-day EMA. Breaking above this level could lead to a climb towards $90. Short-term support is observed around $80, backed by the 50-day EMA. As summer approaches and travel increases, crude oil tends to benefit from seasonal patterns. Despite temporary setbacks, buying...
Jerome H. Powell, the Federal Reserve chair, stated that the central bank can afford to be patient in deciding when to cut interest rates, citing easing inflation and stable economic growth. Powell emphasized the Fed's independence from political influences, particularly relevant as the election season nears. The Fed had raised interest rates to 5.3 ...
Hello again my friends, it’s time for another episode of “What to Trade,” this time, for the month of April. As usual, I present to you some of my most anticipated trade ideas for the month of April, according to my technical analysis style. I therefore encourage you to do your due diligence, as always, and manage your risks appropriately.
Bearish scenario: Sell below 1.0820 / 1.0841... Bullish scenario: Buy above 1.0827...
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Don’t waste your time – keep track of how NFP affects the US dollar and profit!
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