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Charts of the Week: Gold struggles to gather momentum + Oil prices could remain depressed

Market Analysis /
20 Apr 2020

Equity markets continue to advance, and traders are asking themselves if there could be more behind this recovery than just a bear market rally. Should positive sentiment prevail, the GER30 could soon test the key area of resistance between 11,100 and 11,400 points. The index is likely to encounter strong headwinds up there, but a test of this zone would be a success itself for GER30 bulls.

USOIL remains in a strong downtrend. The Daily chart is showing positive RSI divergence, and the commodity is still close to oversold territory. However, there are no signs of a recovery so far, and fighting the trend could prove difficult. The key levels to watch are $17.25 to the downside, and $20 / $22.70 to the topside.

XAUUSD is struggling to find momentum. The Daily chart is showing a negative RSI divergence, and the precious metal has once again struggled to sustain gains above $1700. A break below $1675 could signal that a correction towards the next significant area of support could follow - $1630-37.

EURUSD has difficulties finding a clear direction. The currency pair is consolidating within a triangle pattern, and traders are waiting for clearer signs. A break below 1.08 support could lead to momentum selling and push EUR/USD back towards 1.0650 support. Meanwhile, the key level to watch to the topside is 1.10, followed by the 200 DMA around 1.1070.

The information is not to be construed as a recommendation; or an offer to buy or sell; or the solicitation of an offer to buy or sell any security, financial product, or instrument; or to participate in any trading strategy. Readers should seek their own advice. Reproduction or redistribution of this information is not permitted.

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