Gold (XAU/USD) reversal? Trading short WTI (US Oil)? CAD/CHF in rising wedge [Video]
|I’m Brad Alexander and in this week’s Market Blast Technicals let’s take a look at USDCHF, CADCHF, WTI (USOil) and Gold (XAUUSD).
If we look at the daily chart, we see a couple of bearish candles and an overbought stochastic oscillator, which is really not conclusive.
If we move out to the 4-hour chart, we see a consolidation pattern which could be a symmetrical pennant or it may turn out to be a descending triangle.
We will keep an eye on this, and our confirming indicators to see if Gold will continue its climb or start to reverse.
Last week we spotted this ranging market on the WTI daily chart and price action finally broke out below this lower trend line and stalled at $67.
If we move out to the weekly chart, however, we see that we are at a key level of support and resistance.
If we add an oscillator like MACD, we see a very bullish indication.
Yesterday we promised to take a look at USDCHF and, on the 1-hour chart, we can clearly see that price action has broken out of this descending triangle and is heading back to this level of resistance.
Keep an eye on this level, and the stochastic oscillator, as range traders might have some good opportunities here.
CADCHF, on the other hand, is consolidating into a rising wedge, which is a bearish pattern, and the stochastic oscillator is overbought.
Also, from the fundamental standpoint, the declining price of crude may see some CAD weakness soon.
We see the major US Indices all showing overbought.
Keep an eye on these levels of resistance and watch for breakouts in either direction.
But…don’t forget about tomorrow’s US Fed Interest Rate Decision where the market expects a 0.25% increase.
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