Brad Alexander
FX Large Limited
Despite the geopolitical events and the banning of purchases of Russian gold, price action is still consolidating.
We see a Symmetrical Pennant forming with the Stochastic Oscillator just now turning up from oversold.
Keep an eye on your indicators and the trend lines as we should get a breakout soon.
Also, price action is ranging between the 38.2% level of resistance and the 61.8% level of support.
Yesterday we promised to look at the US indices, like the NASDAQ as many analysts feel that the current rally is temporary.
From the technical point of view, we might be in agreement with them as price action is about to interact the upper trend line in this bearish channel.
Also, the Stochastic Oscillator is showing overbought so we will watch for a downturn.
If we switch to the 4-hour chart we can see that the Signal Line on the MACD has just passed out of the Histogram which often can be a bearish indication.
We recommended selling WTI and Brent Crude after this Rising Wedge and the short position came to an end with price action on WTI moving above $110 and perhaps back to this key level of resistance.
Stronger oil and a slightly weaker USD sees USDCAD moving lower, breaking support on this Head and Shoulders pattern.
MACD is looking bearish and we note that the level of support is also the 38.2% Fibonacci level with more room to move lower.
While we may offer market commentary based on fundamental or technical analysis, we do not offer trading advice and cannot be held liable for any decisions taken by viewers and readers of our material.
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