Trading WTI in Ascending Triangle. Gold Reversal?

Welcome to this week’s Market Blast Technicals.

I’m Brad Alexander and on behalf of Valutrades let’s take a look today at USDCNH, WTI (US Oil), Gold (XAUUSD), and EURUSD.

Yesterday we promised to look at EURUSD from the technical side.

We can see on the 4-Hour chart that price action has just bounced off the upper trend line and that the Stochastic Oscillator is showing overbought and turning to the downside.

If we zoom out to the daily chart we can see that the Stochastic Oscillator is now heading into overbought territory and that price is in a clear downtrend from the beginning of the year.

Price action had fallen to support at 1.17 and the next key level below is 1.163.

Many analysts are looking at a long trade on Gold with the shifting mood in the bond markets.

Gold had tried to break support at $1683 and price action may be forming a Double Bottom on the daily chart, but we need to see price break the neckline at $1745 before looking at a Gold “buy” trade.

Zooming out we see the key Fibonacci levels of support and resistance are at the 61.8% and 50% levels so we also need to watch for a ranging market like we had one year ago.

Fundamentally, WTI is at the mercy of the global pandemic, but on the technical side we see higher lows in an uptrend into this Ascending Triangle with resistance at $61.70.

We haven’t looked at Renminbi for a while but we see this reversal from mid-February might be stalling as price action on USDCNH has retraced to the 23.6% Fibonacci level and the Stochastic Oscillator is heading lower on the Daily chart.

On the 4-Hour chart, we see a potential reversal pattern but we will keep an eye on this.

Thanks for watching and don’t forget to subscribe to our YouTube Channel and register on the Valutrades website to get notifications on new content as it happens.

That’s all for now.  Happy trading with Valutrades and we will see you later in the week with our trading tips video.