2020-10-19 • Updated
XAU/USD is edging higher, but may meet soon the strong resistance. What is the forecast?
House Speaker Nancy Pelosi set a 48-hour deadline to reach a deal over fiscal stimulus ahead of the US election. This announcement has improved the market sentiment and weighed on the US dollar, allowing gold to rally further.
Moreover, the earnings season is underway. Even though companies faced many difficulties amid the coronavirus restrictions, they have managed to beat market expectations. As you know, when earnings are better than the forecasts, stocks move up. These days, gold tends to rise in combination with stocks as investors want to hedge their risky investments.
Elsewhere, the uncertainty over Brexit and the US election process are among factors, which may underpin the yellow metal.
Gold is trading in an ascending channel near its lower trend line. That means it should continue its zig-zag movement and rise further. If it jumps above the high of October 5 at $1 915, the way to the next resistance of $1 930 will be open, but be cautious as there are 50-day moving average and the upper line of Bollinger Bands at this level, which gold is unlikely to break. Support levels are $1 900 and $1 890.
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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