Brad Alexander
FX Large Limited
As we all know, the US Air Force attacked nuclear facilities in Iran over the weekend.
Price action on Crude Oil shot up on Monday with a gap, but fell dramatically after that.
From the technical standpoint, WTI is at a key level of around $65, and the stochastic oscillator is very oversold.
If we look at the same chart of Brent Crude, we see price action trying to reverse already.
However, the fundamentals will be more important as any activity involving Israel, Iran, or American involvement will affect the price of crude.
More importantly, if Iran decides to close the Strait of Hormuz, we will certainly see the price of WTI and Brent Crude rising.
After the attacks on the weekend, price action on the US indices is a mirror image of crude oil.
The Dow Jones Industrial Average opened lower with a gap but rallied in negative correlation to the price of oil and the thoughts of lower interest rates later this year.
USD is weaker against all other currencies, as we see in this EURUSD chart.
But will price action stop at resistance of $1.16?
Price action on gold has been volatile, of course, based on the Middle East situation.
Price is currently at support, so let’s watch for a break below or a bounce to the upside.
That’s all for now.
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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