Archive for Financial News – Page 2

Tencent H-0700 Analysis: Slowing sales forecast bearish for Tencent price

By IFCMarkets

Slowing sales forecast bearish for Tencent price

Tencent stock declined after the company forecast slowdown in sales in 2019. Will the Tencent price continue declining?

Hong Kong based media and entertainment group Tencent Holdings forecast sharp slowdown in video advertising sales in China in 2019. Its chief executive officer of video streaming business told Tuesday the growth rate of advertising sales on China’s video platforms would decrease from 37% previously to 19%. Online advertising contributed 13.4 billion yuan ($1.94 billion), or nearly 16% of Tencent’s total revenue in the first quarter of 2019. Gaming, news and video were the largest contributor to sales, accounting for 33% of revenue in the three months to March. Total revenue in the first quarter rose 16% – about a third of its pace in the same period a year earlier and the slowest revenue growth in the first quarter in 15 years. Lower revenue forecast is bearish for Tencent stock price.

H-0700 breached below MA(200) 05/24/2019 Technical Analysis IFC Markets chart

On the daily timeframe the H-0700: D1 has closed below the 200-day moving average MA(200) which is falling. This is bearish.

  • The Parabolic indicator gives a sell signal.
  • The Donchian channel indicates downtrend: it is tilted lower.
  • The MACD indicator gives a bearish signal: it is below the signal line and the gap is widening.
  • The RSI oscillator is rising after failing to breach into the oversold zone.

We believe the bearish momentum will continue after the price breaches below the lower boundary of Donchian channel at 323.15. This level can be used as an entry point for placing a pending order to sell. The stop loss can be placed above the Parabolic signal at 370.48. After placing the order, the stop loss is to be moved every day to the next fractal high, following Parabolic signals. Thus, we are changing the expected profit/loss ratio to the breakeven point. If the price meets the stop loss level (370.48) without reaching the order (323.15), we recommend cancelling the order: the market has undergone internal changes which were not taken into account.

Technical Analysis Summary

Position Sell
Sell stop Below 323.15
Stop loss Above 370.48

Market Analysis provided by IFCMarkets

Gold Prices End The Week Higher On Soft USD & Weak Risk Appetite

By Orbex

Gold

The yellow metal has enjoyed a better week against the US dollar as the greenback has weakened once again. Following on from the prior FOMC meeting minutes, where some members raised the prospect of a rate hike in the remaining months of the year, bulls were quietly hoping for more of that discussion.

However, USD was sold sharply as the meeting minutes failed to provide any indication that a rate hike will be coming in 2019. The minutes showed that “In light of recent, softer inflation readings, some viewed the downside risks to inflation as having increased”.  In terms of the outlook for future rate adjustments, the minutes concluded that “a patient approach to determining future adjustments to the target range for the federal funds rate would likely remain appropriate for some time.”

On the other hand, the minutes were good news for gold buyers. It looks as though unless things dramatically improve, we are unlikely to see a rate hike in the coming months. Furthermore, looking further out towards October, the market is increasing its pricing for a rate cut.

Technical Perspective

xauusd technical perspective

After breaking out above the short term bearish channel top at the start of the week, gold prices have since reversed lower. Prices are trading back inside the bear channel and back beneath the key 1280.58 level. However, into the final sessions of the week, we are once again sitting just atop 1280.58. This level continues to be a key pivot for gold.

While above here, the focus remains on an eventual break higher as the current bear channel can be viewed as a bull flag to the initial drive higher at the start of the year. If we break back below the 1280.58 level, however, we are looking to 1265.96 which has capped the recent sell-off. A break of that region will put focus on a run down to 1250.58 next.

Silver

Silver prices have been much stronger this week also. This comes following three straight weeks of declines, as a weaker US dollar and softer risk appetite have helped lift demand. Risk assets traded heavily lower this week. Concerns around the escalating US/China trade war once again came back into central focus.

Following China’s retaliatory 25% tariffs on $60 billion of US goods, the market this week reacted to news of the US banning US companies from dealing with Chinese tech firm Huawei.  While the two sides continue to try and deliver a trade deal, the market is not displaying much optimism. Both equity and oil prices have collapsed lower, allowing gold and silver to trade higher on safe haven flows.

Technical Perspective

xauusd

Silver is now sitting just above the 14.3321 support, having broken down fully through the 14.9161 level. This level now offers resistance should the market retest. Ahead of that level, we also have bearish trend line resistance from recent highs which has been framing the move lower. Below the 14.3321 level, the next key support will be the 14.0352 zone. This is a major long term level for silver and poses the risk of a much deeper move lower if broken.

By Orbex

 

Forex Technical Analysis & Forecast 24.05.2019 (EURUSD, GBPUSD, USDCHF, USDJPY, AUDUSD, USDRUB, GOLD, BRENT)

Article By RoboForex.com

EURUSD, “Euro vs US Dollar”

EURUSD has tested 1.1182 from below; right now, it is consolidating around this level. Possibly, the pair may expand the range towards 1.1190 and then form a new descending structure to break 1.1150. After that, the instrument may continue trading inside the downtrend with the target at 1.1100.

EURUSD
Risk Warning: the result of previous trading operations do not guarantee the same results in the future

GBPUSD, “Great Britain Pound vs US Dollar”

GBPUSD has completed the correction and returned to 1.2680. Possibly, today the pair may resume trading inside the downtrend with the short-term target at 1.2550.

GBPUSD
Risk Warning: the result of previous trading operations do not guarantee the same results in the future

USDCHF, “US Dollar vs Swiss Franc”

USDCHF has finished another correctional structure at 1.0025; right now, it is trading upwards with the target at 1.0050. Later, the market may start another decline towards 1.0035 and then form one more ascending structure with the first target at 1.0076.

USDCHF
Risk Warning: the result of previous trading operations do not guarantee the same results in the future

USDJPY, “US Dollar vs Japanese Yen”

USDJPY has reached the short-term target at 109.55; right now, it is consolidating around this level. Today, the pair may start a new growth to reach 109.95 and then continue falling towards 109.26. After that, the instrument may be corrected with the target at 109.95.

USDJPY
Risk Warning: the result of previous trading operations do not guarantee the same results in the future

AUDUSD, “Australian Dollar vs US Dollar”

AUDUSD has completed the correction at 0.6896; right now, it is moving downwards. Possibly, the pair may beach 0.6863. After that, the instrument may break it and then continue trading inside the downtrend with the target at 0.6800.

AUDUSD
Risk Warning: the result of previous trading operations do not guarantee the same results in the future

USDRUB, “US Dollar vs Russian Ruble”

USDRUB has completed the correctional structure at 64.80 and formed a new consolidation range around it. Today, the pair may form a new descending structure to break 64.56 and then continue trading inside the downtrend with the first target at 63.94.

USDRUB
Risk Warning: the result of previous trading operations do not guarantee the same results in the future

XAUUSD, “Gold vs US Dollar”

Gold has finished another correctional structure and returned to 1285.70. Possibly, today the pair may consolidate near the current highs. If later the price breaks this range to the downside, the instrument may resume trading inside the downtrend with the target at 1267.60.

GOLD
Risk Warning: the result of previous trading operations do not guarantee the same results in the future

BRENT

After breaking 70.70, Brent completed another correctional structure at 67.10; it has already formed another consolidation range and broken it to the upside. Possibly, the pair may start another growth to reach the first target at 69.13. Later, the market may form a new descending structure towards 68.06 and then resume trading upwards with the target at 71.30.

BRENT

Article By RoboForex.com

Attention!
Forecasts presented in this section only reflect the author’s private opinion and should not be considered as guidance for trading. RoboForex LP bears no responsibility for trading results based on trading recommendations described in these analytical reviews.

Fibonacci Retracements Analysis 24.05.2019 (BITCOIN, ETHEREUM)

Article By RoboForex.com

BTCUSD, “Bitcoin vs US Dollar”

In the H4 chart, after reaching the long-term retracement of 38.2% at 8520.00, BTCUSD started a new pullback to the downside, which has already reached the retracement of 23.6%. The next downside targets may be the retracements of 38.2% and 50.0% at 6445.00 and 5849.00 respectively. After finishing this pullback, the price may resume trading upwards. If the instrument breaks the high at 8365.70, the pair may continue growing to reach the retracements of 38.2% and 50.0% at 8520.00 and 10170.00 respectively.

Bitcoin
Risk Warning: the result of previous trading operations do not guarantee the same results in the future

In the H1 chart. BTCUSD is trading downwards to re-test the retracement of 23.6%. if the price breaks it, the instrument may continue falling towards the retracement of 38.2%.

BTCUSD
Risk Warning: the result of previous trading operations do not guarantee the same results in the future

ETHUSD, “Ethereum vs. US Dollar”

As we can see in the H4 chart, ETHUSD is forming another correction to the downside, which has already reached the retracement of 38.2%. The next targets may be the retracements of 50.0% and 61.8% at 213.13 and 197.52 respectively. After finishing the correction, the instrument may start a new rising wave to break the high at 279.90.

ETHUSD
Risk Warning: the result of previous trading operations do not guarantee the same results in the future

The H1 chart shows more detailed structure of the correction.

Ethereum

Article By RoboForex.com

Attention!
Forecasts presented in this section only reflect the author’s private opinion and should not be considered as guidance for trading. RoboForex LP bears no responsibility for trading results based on trading recommendations described in these analytical reviews.

Durable Goods Orders Growth To Slow In April

By Orbex

The monthly durable goods orders report is due out during the NY trading session today. According to the economists polled, growth in durable goods orders excluding defense purchases is set to slow in April.

The data comes at a crucial time when the US has ramped up its trade war rhetoric against China. Increased tariffs from 10% to 25% and a retaliatory response from China are likely to dampen demand in the near term.

The data for April will potentially shed a light on the second quarter GDP report. Some of the sub-measures of the durable goods orders are signaling that growth has likely reached its peak.

Durable Goods Orders to Retreat from March Highs

Estimates show that durable goods orders excluding defense spending could rise 0.2% on the month. This follows the same pace of increase in March.

Durable goods orders excluding defense for March initially came in at 0.4%. But, later, they were revised to show a 0.2% increase. Expectations are for headline durable goods orders to post a decline of 1.7% for April.

This follows the 2.6% increase in the report covering March. Nondefense capital goods excluding aircraft are forecast to rise 0.1% following a 1.0% increase previously.

The decline in the durable goods orders comes after they rose to an eight-month high just the month before. The broader measure of durable goods orders saw some surprise uptick with corporate investment rising despite trade tensions.

Non-military capital goods which are a proxy for business investment grew at a pace of 1.3% in March. This reversed the declines from the prior month.

A rise in demand for finished goods saw manufacturers increasing their activity during the month. But larger inventories will continue to play their role in the months ahead.

Manufacturing activity has remained subdued. Recent data from the Institute of Supply Management saw business activity in the manufacturing sector easing. This could potentially affect the figures for April.

In April, durable goods capacity utilization was 75.3%, which was the first month that capacity utilization was below 76% since July 2018. Compared to one year ago, capacity utilization decreased by 0.9%, marking the first month of contraction since December 2016. Capacity utilization over the past five months has also been trending lower.

U.S. Industrial production
vU.S. Industrial production

Aircraft and Vehicle Orders Expected Lower

Posing a drag on the durable goods orders, aircraft orders from Boeing and weaker vehicle sales hint towards the smaller pace of growth. The auto vehicle sales for April disappointed expectations. Economists expected to see a rebound in auto sales following the rebound in March.

The rebound in March vehicle sales reversed the declines from the previous two months. And economists expected it to continue into April. New vehicle sales dipped 2.3% on the month in April to 1.33 million. The declines in vehicles came despite an extra day during the month, compared to the same period in the month before.

New orders for Aircrafts fell sharply in April. Boeing reported that there were literally no new orders for aircrafts in April. This comes following the scandal surrounding the Boeing 737 Max aircraft.

Because Boeing is a major contributing factor to overall retail sales including aircraft orders, this could potentially take the air out of the durable goods orders report.

A weaker report could possibly lower the expectations of the second quarter GDP numbers. Various trackers currently estimate the US GDP shows an average growth between 1.7% – 2.0%. The median consensus currently puts the second quarter growth rate at 1.9%.

This could potentially be revised lower if the durable goods orders post an unexpected decline for April.

Noting the above, today’s durable goods orders report is likely to show a weaker pace of new orders coming through in April.

By Orbex

 

The Analytical Overview of the Main Currency Pairs on 2019.05.24

by JustForex

The EUR/USD currency pair

Technical indicators of the currency pair:
  • Prev Open: 1.11501
  • Open: 1.11812
  • % chg. over the last day: -0.28
  • Day’s range: 1.11726 – 1.12056
  • 52 wk range: 1.1111 – 1.2009

EUR/USD started to recover and updated the local maximums. The investors began to fix positions after a long rally. The escalation of the trade war between Washington and Beijing increased the expectation for the FRS to lower the interest rates this year. An additional pressure is cause by the negative trends in the US Treasury bonds’ yield. The market participants are watching the EU Parliament elections. The quotes are consolidating around 1.11800-1.12000. You should open positions from these levels. EUR has prospects for further recovery.

The Economic News Feed for 24.05.2019:

  • – Report on the Orders of Durable Goods (US) – 15:30 (GMT+3:00);
EUR/USD

The price fixed above 200 MA which points towards the power of the buyers.

The MACD histogram is in the positive zone and keeps rising which points towards a further correction of the EUR/USD quotes.

The Stochastic Oscillator is in the neutral zone, the %K line is crossing the %D line. There are no signals at the moment.

Trading recommendations
  • Support levels: 1.11800, 1.11500, 1.11300
  • Resistance levels: 1.12000, 1.12200, 1.12450

If the price fixes above 1.12000, expect further descend towards 1.12300-1.12500.

Alternatively, the quotes can descend towards 1.11500-1.11300.

The GBP/USD currency pair

Technical indicators of the currency pair:
  • Prev Open: 1.26516
  • Open: 1.26525
  • % chg. over the last day: +0.01
  • Day’s range: 1.26477 – 1.26879
  • 52 wk range: 1.2438 – 1.3631

GBP/USD stabilized after a long descend. The GBP is consolidating. The local support and resistance levels are 1.26500 and 1.27000. The market participants are waiting for the relevant info regarding Brexit. A technical correction remains possible. You should open positions from the key levels.

At 11:30 (GMT+3:00) the UK will publish a retail sales report.

GBP/USD

The indicators do not provide precise signals, the price has crossed 50 MA.

The MACD histogram has moved into a positive zone which points towards a correction of GBP/USD.

The Stochastic Oscillator is in the neutral zone, the %K line started to cross the %D line. There are no signals at the moment.

Trading recommendations
  • Support levels: 1.26500, 1.26000
  • Resistance levels: 1.27000, 1.27550, 1.28000

If the price fixes above 1.27000, expect further correction towards 1.27500-1.27800.

Alternatively, the quotes can fall towards 1.26200-1.26000.

The USD/CAD currency pair

Technical indicators of the currency pair:
  • Prev Open: 1.34356
  • Open: 1.34721
  • % chg. over the last day: +0.33
  • Day’s range: 1.34459 – 1.34824
  • 52 wk range: 1.2727 – 1.3664

USD/CAD started to descend after a sharp growth. The trading instrument updated the local minimums. The key support and resistance levels are 1.34450 and 1.34700. The demand for USD weakens. Keep an eye on the oil quotes dynamics and open positions from the key levels.

The Economic News Feed for 24.05.2019 is calm.

USD/CAD

The indicators do not provide precise signals: 50 MA has crossed 200 MA.

The MACD histogram is close to 0.

The Stochastic Oscillator is in the oversold zone, the %K line started to cross the %D line. There are no signals at the moment.

Trading recommendations
  • Support levels: 1.34450, 1.34200, 1.34000
  • Resistance levels: 1.34700, 1.34900, 1.35100

If the price fixes below 1.34450, epxect a correction towards 1.34000.

Alternatively, the quotes can grow towards 1.34800-1.35000.

The USD/JPY currency pair

Technical indicators of the currency pair:
  • Prev Open: 110.333
  • Open: 109.594
  • % chg. over the last day: -0.73
  • Day’s range: 109.456 – 109.745
  • 52 wk range: 104.97 – 114.56

USD/JPY is showing an agressive bearish trend. The quotes have descended by 70 points. The demand for the safe assets has grown since the trade negotiations between the US and China seem to have reached a dead end. Right now the quotes are consolidating around 109.500-109.750. Keep an eye on the US economic reports. The currency pair has a tendency to descend.

The national basis consumer price index in Japan for April confirmed the market expectations and reached 0.9%.

USD/JPY

The price fixed below 200 MA which points towards the power of the sellers.

The MACD histogram is in the negative zone but above the signal line which gives a weak signal to sell USD/JPY.

The Stochastic Oscillator is in the neutral zone, the %K line is crossing the %D line. There are no signals at the moment.

Trading recommendations
  • Support levels: 109.500, 109.150, 109.000
  • Resistance levels: 109.750, 110.100, 110.350

If the price fixes below 109.500, expect further descend towards 109.150-109.000.

Alternatively, the quotes can grow towards 110.000-110.200.

by JustForex

Clouds of uncertainty continue for Sterling as Theresa May announces resignation

By Lukman Otunuga, Research Analyst, ForexTime

Theresa May’s decision to step down as Prime Minister is hardly surprising, given her inability to get a Brexit deal through parliament as well as the speculated losses her party are thought to have incurred during the ongoing European Parliament elections.

Markets had already priced in the likelihood of a change at 10 Downing Street, which has contributed to the dismal performance of Sterling this week, earning the distinction of the worst performing G10 currency this month with suffered losses at 3%.

The growing uncertainty over who will next steer the Brexit process further complicates Sterling’s outlook. The October 31 deadline to leave the European Union is slowly approaching. There is speculation in the air over May potentially being succeeded by a Eurosceptic leader, which is seen raising the prospects of a no-deal Brexit. Something that would appear to be another warning light for Sterling.

Another key question to bear in mind is whether there will be enough time to prepare a suitable deal after the leadership contest concludes. The UK may be forced to ask for another extension from the European Union in such a scenario, which has the potential to face rejection given the constant back and forth around Brexit talks. Today’s development has certainly opened another can of worms and added to the chronic uncertainty over Brexit.

Although the Pound offered a mixed reaction after May announced her resignation date, investors should fasten their seat belts as the new round of drama ahead is just starting.

Disclaimer: The content in this article comprises personal opinions and should not be construed as containing personal and/or other investment advice and/or an offer of and/or solicitation for any transactions in financial instruments and/or a guarantee and/or prediction of future performance. ForexTime (FXTM), its affiliates, agents, directors, officers or employees do not guarantee the accuracy, validity, timeliness or completeness, of any information or data made available and assume no liability as to any loss arising from any investment based on the same.


Forex-Time-LogoArticle by ForexTime

ForexTime Ltd (FXTM) is an award winning international online forex broker regulated by CySEC 185/12 www.forextime.com

The Dollar Index Has Moved Away from Two-Year Highs

by JustForex

During yesterday’s trading, the greenback weakened against a basket of world currencies. The dollar index (#DX) moved away from two-year highs and closed the trading session in the negative zone (-0.16%). Investors began to partially fix positions after a continuous rally of the US currency. The threat of economic consequences from the trade war with China raised expectations for the Fed to cut interest rates this year. The US currency is under pressure due to a fall in the 10-year US government bonds yield.

Elections to the European Parliament, as well as the situation concerning Brexit, are still in the focus of attention. The resignation of the leader of the House of Commons, Andrea Leadsom, raises the pressure on the British Prime Minister. At the moment, most experts agree that Theresa May may announce her resignation in the near future. Today, financial market participants will assess important economic releases from the UK and the US.

The “black gold” prices have been recovering after a sharp collapse the day before (more than 5%). At the moment, futures for the WTI crude oil are testing $58.50 per barrel.

Market Indicators

Yesterday, the major US stock indices closed in the negative zone again: #SPY (-1.22%), #DIA (-1.10%), #QQQ (-1.53%).

The 10-year US government bonds yield continues to show negative dynamics. Currently, the indicator is at the level of 2.31-2.32%.

The news feed on 2019.05.24:

– Report on retail sales in the UK at 11:30 (GMT+3:00);
– Core durable goods orders in the US at 15:30 (GMT+3:00).

by JustForex

‘Flight-to-safety’ remains default mode as US-China tensions show no signs of thawing

By Han Tan, Market Analyst, ForexTime

Asian markets soured further on Friday, following US stocks lower on mounting fears that prolonged US-China trade tensions could have a more drastic impact on the global economy. The selloff this month indicates that markets are pricing in the prospects of a ramp up in the US-China conflict, as both sides appear to be digging their heels in deeper over recent days.

Investors have been trimming exposures to riskier assets and seeking refuge in safe havens, with Gold jumping over one percent back above the psychological $1,280 level, while yields on the benchmark 10-year US Treasuries are now at their lowest since October 2017.

Disappointing US factory activity shows cracks in “resilient US” narrative

With the IHS Markit US manufacturing PMI hitting a 9-year low this month, investors are now concerned that the US too will not be spared from a sharper global slowdown if the US-China trade conflict persists. Following the data release, the Dollar index (DXY) couldn’t maintain its position above the 98 handle and dropped by about 0.5 percent.

Signs of a more pronounced slowdown in the world’s largest economy may prompt the Fed to shift away from its “patient” stance on interest rates and produce the rate cut that markets, as well as President Donald Trump, have been yearning for. With US inflation persistently muted, weaker US economic indicators over the coming months may be enough to tip the balance for policymakers to ease US monetary policy settings, with investors currently pricing in a near-80 percent chance of a Fed rate cut by December.

Oil tumbles on rising demand risks over protracted US-China tensions

Brent futures shed more than 4 percent to trade just above the $68/bbl mark at the time of writing, wiping out most of their Q2 gains. The rapid deterioration in US-China ties brings next month’s OPEC meeting into sharper focus. Demand side risks are set to feature prominently on the upcoming decision by Oil producers about whether to maintain production cuts going into the second half of the year.

Ultimately, the US-China standoff is expected to dent global Oil demand for 2019 and complicate attempts by OPEC+ producers to rebalance the global Oil markets, while further bouts of volatility shouldn’t come as a surprise to traders moving forward.

Pound remains mired in political uncertainties as May said to near exit

The Pound is likely to test the 1.26 support level against the US Dollar, amid reports that UK Prime Minister Theresa May is set to announce a timetable for her departure on Friday. Markets appear to have priced in some likelihood of a change at 10 Downing Street, given that the Pound has been the worst-performing G10 currency this week.

Still, investors are eager to find out what will actually transpire in this political saga, and the potential implications for Brexit. Should a hardline Brexiteer take over as Prime Minister, that potentially increases the chances of a no-deal Brexit, which could contribute to further weakness in GBPUSD.

Disclaimer: The content in this article comprises personal opinions and should not be construed as containing personal and/or other investment advice and/or an offer of and/or solicitation for any transactions in financial instruments and/or a guarantee and/or prediction of future performance. ForexTime (FXTM), its affiliates, agents, directors, officers or employees do not guarantee the accuracy, validity, timeliness or completeness, of any information or data made available and assume no liability as to any loss arising from any investment based on the same.


Forex-Time-LogoArticle by ForexTime

ForexTime Ltd (FXTM) is an award winning international online forex broker regulated by CySEC 185/12 www.forextime.com

Risk Off Sentiment Sends Gold And Yen Higher

By Orbex

Investors continued to shun risk assets on Thursday amid a mix of global themes. The stalemate in the US and China talks alongside rumors that the US could blacklist more Chinese firms set the tone for the day. On the economic front, US flash manufacturing and services PMI from Markit came out weaker while new home sales grew just 673,000 from a revised print of 723,000 previously.

Sterling Holds Declines as PM May Stands on Shaky Ground

Developments in the UK related to Brexit saw Prime minister May inching closer to a potential resignation. This follows the latest Brexit plans tabled in the Parliament. The new set of Brexit plans raised more criticism. Lawmakers demanded that May clarifies by today on when she will resign as the Prime Minister.

GBPUSD Bounces Off Lower Support

The currency pair posted a modest rebound as price tested the lows of 1.2606. However, GBPUSD will need to clear the upper resistance as 1.2716 in order to confirm the upside shift in the bias. For the moment, we expect the cable to maintain a sideways range within these levels. Consolidation at the current range could mean that the bias could shift in any direction leading to the next leg of the trend.

gbpusd

Crude Oil Slips as Inventories Rise

WTI crude oil prices fell over 5% on the day on Thursday. The declines came after the US Energy Information Administration’s weekly inventory report. US stockpiles of crude oil rose to the highest levels since July 2017. The US crude oil production grew by 100,000 barrels, rising close to the record levels of 12.3 million.

Oil Needs a Firm Test of 57.50 Support

Oil prices briefly tested the 57.50 level of support on Thursday. But price quickly retraced to pullback modestly on the day. We could expect to see the bounce offering some near term gains. However, the price will need to establish firm support near the 57.50 level. As long as this support holds, WTI crude oil prices could drift sideways with the recently breached support at 60.33 likely to turn to resistance.

forex wti

Gold Briefly Gains on Risk off Sentiment

The precious metal rose 0.77% on the day as the risk-off sentiment in the markets saw investors rushing to safe haven assets. Equity markets fell with the Dow Jones easing 1.6% during trading. Tech stocks fell, dragging the NASDAQ lower as more and more companies backed away from Huawei.

Is XAUUSD Turning Bearish?

The rally in the gold prices stalled at the 1285 handle as the resistance level is being tested currently. The Stochastics oscillator is pointing to a bearish divergence. This also coincides with a potential right shoulder being formed off the head and shoulders pattern. A successful retracement off the 1285 handle will see XAUUSD testing the support at 1270 which marks the neckline support. A subsequent breakdown below this level will trigger declines to the 124 – 1250 handle.

xauusd

By Orbex