Forex trading WTI on Iran conflict, XAU/USD descending triangle [Video]

Welcome to today’s Market Blast.

Today, we will take a look at Forex Trading on the S&P500, Gold, XAUUSD, WTI and Brent Crude Oil.

If you are new to the Crude Oil markets, let’s take a look at the varieties available to trade.

WTI is short for West Texas Intermediate crude oil, which is pumped mostly in Texas and stored in Oklahoma.

Brent Crude is pumped from oil rigs in the North Sea and represents 70 to 75% of the world’s oil supply.

This higher demand, and the fact that it is closer to major markets, makes it more in demand and hence, the price is higher.

4 days ago, the price of WTI and Brent Crude rose dramatically, and were almost equal, due to supply problems caused by the Iran war.

This equilibrium is extremely rare, and we are now back to about a $5 difference.

This is normal.

The price of both is still rising as private oil tankers are being attacked in the Strait of Hormuz, creating a supply problem.

Technically, both Brent and WTI are overbought, but this is still definitely not a technical trade.

Any good news out of Washington about Iran should have prices falling.

In our last video, we looked at range trading Gold, and this is still a viable strategy as we examine the price action since we spotted it.

However, we are now seeing price action forming a descending triangle with support at about $5,060.

This could break either way, and we see the stochastic oscillator is oversold.

On the other side, if we move out to the 1-hour chart, we see the opposite technical signal with the stochastic oscillator overbought and price action starting a reversal.

With contradictory information on different time frames, we need to let price action settle down and, more importantly, we need to follow the news, as any movement in geopolitical events or USD will cause the price of gold to change.

The war has also caused uncertainty, which always happens, and we see the S&P500 trending downward.

Price action has reached the upper trend line, and our technicals are looking overbought.

And watch for volatility today with UK GDP, Canadian Employment figures and US PCE Price Index, GDP, and Job Openings.