Gold in falling wedge (again) – How does war affect Gold? Crude Oil falling [Video]
|I’m Brad Alexander and in today’s Market Blast, let’s look at GBPAUD, Brent Crude (UKOil), EURUSD, GBPUSD, and Gold (XAUUSD).
If you saw Monday’s Market Blast video we showed you the incredible fall of USD after the lower-than-expected Non-Farm Payroll report.
USD has since rebounded and, if you want to know how to trade these post-event price action movements, we have published a video on “Trading News Events” and the link will be in the description of this video.
Yes. The current strength of USD has pushed the price of gold lower but keep an eye on the current geopolitical events.
Anything can happen and big events almost always affect the price of Gold.
From the technical side, we see price action forming a falling wedge, which is usually a bullish indication, and the stochastic oscillator is very oversold and starting to turn up.
If we move out to the daily chart we see that on 7 October, the weekend that the Hamas-Israeli war started, price action gapped to the upside and climbed.
It has since retreated but, again from the technical side, keep an eye on the stochastic oscillator and your other favourite indicators.
Also, we can see that the 50% Fibonacci retracement level is a key level so let’s keep an eye on this.
Price action on both Brent Crude (UKOil) and WTI (USOil) have been falling all week based on poor data from China.
The next key level below is $78 per barrel with major support at $72.
We can see a few technical opportunities and here is an Ascending Triangle on GBPAUD.
Price action has just bounced off this level of resistance and the stochastic oscillator is overbought and turning down.
But watch out for tomorrow’s UK GDP figures.
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