Gold and Oil use weaker Dollar to start the New Year in a positive mood [Video]

End of the year is that weird time, when sometimes people do not know even what the date is. Liquidity and volatility are much lower than usual and some of the movements on the market should not be treated seriously. End of the 2019 could have been different though. On few major instruments, price created great, legitimate trading setups, which may be in use at the beginning of 2020. Let me show You the best three.

We start with the Oil, which started the 2019 terrible but managed to pull the price higher and end the previous year with an impressive gain. From the technical point of view, December brought us a breakout of three major resistances and in consequence – a proper buy signal. The price escaped from the symmetric triangle to the upside, which gives us a positive sentiment for the future.

Next instrument is Gold, which was mentioned by us many times before the NYE. We pointed out the positive sentiment with an optimistic outlook for the future. The breakout from the 23^rd of December helped in making that happen. Since that, most of the days were positive and Gold managed to climb around 30 USD higher. Currently, we are on an important mid-term resistance but it seems that it can be broken soon.

Rises on Oil and Gold can be partially explained by the weakness of the USD. This can be also seen on the USDJPY, which in the past few days is sharply declining. It all started, when the price failed to break the 109,7 resistance and the long-term down trendline. Currently, the price is breaking the 2 months dynamic support and if successful, we can get a mid-term sell signal on this instrument.