SGT Chart Book
After the spike above the down trendline, the market has sold off and we are now seeing a period of consolidation. Currently holding above the 50-day moving average, as the market digests the economic landscape.
The market held below the weekly trendline resistance levels and weakness in the pair was seen last week. A clear break above this resistance area is needed to encourage the bulls.
The cross traded into new yearly lows after breaking identified support at 0.8720. In the last two weeks we have seen a slight break of yearly highs and now breaks to the downside.
Traded within a range of 0.9000/0.8800 recently, we need to break and close above 0.9000 to setup any type of significant rally and call for short term lows are in place.
After the new high made in the gold market above $2,070. We have seen more consolidation, with charts showing significant divergencies between price action and technical indicators as seen on chart below. While longer term charts remain bullish, we think we will see continued sideways action, within a wide range.
After the surprise cut in oil production from the Saudis, that led to a $5 gap in prices, we have seen a sell off reaching back down into the $60 per barrel range. Immediate resistance seen around the $73.90/74.00 area; and wide ranges are expected to continue as the oil market digests global data.
A week of range trading with a downward bias, breaking below the previous lows of around $26,400, before buyers were seen. Key support around $25,200 is watched closely as clues to longer term price direction.
Disclaimer: Trading Desk Observations are not trade recommendations. The purpose of these charts is to bring to your attention potential chart patterns you may wish to monitor.
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