Did you catch this double top on Gold?
I’m Brad Alexander and in this week’s Market Blast Technicals let’s take a look at Brent Crude (UKOil), USDCAD, NZDUSD, the FTSE 100 (UK100), and Gold (XAUUSD).
Last week, Gold formed this double top which, depending on how you draw your trend lines, could be considered a head and shoulders pattern.
Regardless, it broke the neckline and price action has fallen into this demand zone so we will wait for a breakout either way.
The Stochastic Oscillator is clearly bearish but oversold so we will need to wait to see some direction here.
The Daily chart shows bearish price action with the bounce off the upper trend line and the Stochastic Oscillator still moving down.
Yesterday, we promised to take a look at the FTSE 100 as all stock indices were quite bearish.
We have, however, spotted this falling wedge on the 4-hour chart with the Stochastic Oscillator heading into oversold territory.
USD strength is continuing, as we noted yesterday.
NZDUSD has broken the key level of support that we noted yesterday but price action is trying to consolidate so we will monitor this.
Price action on USDCAD has reached a key level of resistance and has formed an Ascending Triangle.
The Stochastic Oscillator is very overbought but has been bullish for a few days now.
We will watch for a break either way.
Brent Crude has fallen again today but we could be getting ready for a reversal as we see the Stochastic Oscillator well into oversold territory.
However, beware as the story on the Daily chart is contrary with price action bouncing off the upper trend line and the Stochastic Oscillator crossing and moving down.
While we may offer market commentary based on fundamental or technical analysis, we do not offer trading advice and cannot be held liable for any decisions taken by viewers and readers of our material.
Recommended Content
Editors’ Picks
AUD/USD remains resilient in risk-off mood
The AUD/USD registers minimal losses against the Greenback late during Wednesday’s North American session after hitting a daily high of 0.6915. Risk aversion boosted the prospects of safe-haven currencies, due to the likelihood of Israel retaliating after Iran’s missile attack on Tuesday.
USD/JPY skyrockets over 200-pips on Japan’s PM comments
The Greenback recovered against the Japanese Yen on Wednesday, rallying over 2% after Japanese Prime Minister Ishiba commented the economic environment is not ready for additional rate hikes. The USD/JPY jumped off daily lows of around 143.42 and soared sharply toward current exchange rates.
Gold declines amid rising US yields, as Israel vows retaliation
Gold retreated on Wednesday during the North American session and dropped 0.50% daily as traders eyed Israel's reaction to Iran’s attack on Tuesday. Geopolitics remains the driver for traders, which lifted Gold prices after posting back-to-back bearish sessions since last Friday.
Is Bitcoin a safe haven amid Middle East tensions? Here's what you need to know
Following Bitcoin's 6% decline since Iran's missile attack on Israel, several investors are questioning whether the cryptocurrency's alleged "safe haven" status still holds.
RBA widely expected to keep key interest rate unchanged amid persisting price pressures
The Reserve Bank of Australia is likely to continue bucking the trend adopted by major central banks of the dovish policy pivot, opting to maintain the policy for the seventh consecutive meeting on Tuesday.
Five best Forex brokers in 2024
VERIFIED Choosing the best Forex broker in 2024 requires careful consideration of certain essential factors. With the wide array of options available, it is crucial to find a broker that aligns with your trading style, experience level, and financial goals.