Brent (UKOil) & WTI (USOil) About to Reverse? Mixed Technical and Fundamentals on Gold (XAUUSD).
Hey Valutraders! Is Crude Oil going to reverse to the downside?
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I’m Brad Alexander and in today’s Market Blast, let’s look at USDCAD, EURUSD, Gold (XAUUSD), and WTI (USOil).
Before we start, let’s inform all the Valutraders that the format of these videos will change slightly from now on.
You will see the Market Blast videos on Mondays and Thursdays from now and they will include both fundamental and technical analysis.
Also, every two weeks will publish a special video on trading certain instruments.
Getting back to WTI on the weekly chart, we can see that crude is still in a downtrend from last year with price action trying to break this key level of resistance at $88.
The daily chart tells the same story and we can see that on both charts the stochastic oscillator is overbought.
However, this is not the time to sell from the technical aspect.
We will want to wait for a downturn in our indicators and perhaps to see the signal line of MACD moving out of the histogram.
We have the same situation on the 4-hour chart and many analysts are predicting prices to fall based on recessionary fears and a downturn in the Chinese economy.
The same analysts are predicting a rise in the price of gold based on the falling price of WTI and Brent.
This may be true but from the technical side, we see bearish indications on the daily chart with price action just bouncing off the upper trend line.
We may want to wait then and perhaps see if the MACD signal line passes above the “0” into bullish territory.
Also, keep an eye on the USD even though we don’t have much market-moving news this week.
However, we have lots of EUR news this week with ECB speeches, Retail Sales, Employment and GDP.
As well, if the price of Crude changes as we mentioned earlier, this will always affect the CAD and we have an Interest Rate decision, a PMI, a speech and employment data out this week.
We saw bad GDP figures last week which accounted for this volatility and we have mixed strength and weakness on CAD pairs.
Regarding the EUR economic news, we see general weakness so watch for the news to drive price action against the trend for some selling opportunities this week.
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