AUD/USD and NZD/USD Could Eye Fresh Increase

AUD/USD started a fresh decline from the 0.6980 resistance. NZD/USD is also declining and might even trade below the 0.6150 support.

Important Takeaways for AUD/USD and NZD/USD

1. The Aussie Dollar started a fresh decline below the 0.6920 support zone against the US Dollar.

2. There is a key bearish trend line forming with resistance near 0.6880 on the hourly chart of AUD/USD.

3. NZD/USD also started a major decline from the 0.6330 resistance zone.

4. There is a major bearish trend line forming with resistance near 0.6215 on the hourly chart of NZD/USD.

AUD/USD Technical Analysis

The Aussie Dollar attempted a fresh increase above the 0.6980 and 0.7000 levels against the US Dollar. However, the AUD/USD pair failed to continue higher above 0.6980 and started another decline.

There was a move below the 0.6950 and 0.6920 support levels. There was a close below the 0.6900 level and the 50 hourly simple moving average. The pair traded as low as 0.6821 and is currently showing a lot of bearish signs.

AUD/USD Hourly Chart

On the downside, an initial support is near the 0.6800 level. The next support could be the 0.6780 level. The main support is near the 0.6720 level. If there is a downside break below the 0.6720 support, the pair could extend its decline towards the 0.6650 level.

Any more downsides might send the pair toward the 0.6600 level. On the upside, the AUD/USD pair is facing resistance near the 0.6845 level. It is near the 23.6% Fib retracement level of the downward move from the 0.6919 swing high to 0.6821 low.

The next major resistance is near the 0.6870 level. It is near the 50% Fib retracement level of the downward move from the 0.6919 swing high to 0.6821 low.

There is also a key bearish trend line forming with resistance near 0.6880 on the hourly chart of AUD/USD. A close above the 0.6880 level could start a steady increase in the near term. The next major resistance could be 0.6950.

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US Dollar's sustained rally is surprising the markets, especially against Bitcoin

During the past few weeks, the US Dollar has been surprisingly strong against many western majors, notably the Euro and British Pound, despite the American and European economies facing very similar obstacles over the past two years.

This has been a particularly interesting dynamic, especially as the inflation levels among European Union member states, the United Kingdom and the United States are at levels not seen since the 1980s, and the geopolitical circumstances foist upon the citizens are similar.

The US Dollar also lost part of its status as a settlement instrument for global oil and gas purchasing a few months ago when the Russian government rolled out a new policy that ensures all Western buyers of oil and gas from Russia settle their deliveries in Rubles.

Despite all of this, the US Dollar has been performing well against its major peers, and perhaps more interestingly, against Bitcoin, too.

Last year, analysts in Wall Street predicted that the Bitcoin would go to $150,000 in value over the 'next few months'. This has not happened and in reality, Bitcoin' inverse correlation with the US Dollar actually hit a 17-month high yesterday.

It is unusual for analysts within Tier 1 banks in Wall Street to make incorrect predictions. They were right about the oil prices, afterall, when many analysts said in the summer of 2021 that Brent Crude would go to $80 per barrel by the autumn, as that is exactly what happened.

However, when it comes to Bitcoin, things have been less predictable, even by experts who have the credibility of a Tier 1 investment bank to uphold.

Bitcoin's current relatively low value has become a sustained circumstance, and now, market analysts are starting to comment that the US Dollar rally may either stll or correct by the end of 2022 against its fiat currency peers, which in turn may benefit Bitcoin.

This goes some way toward suggesting that Bitcoin is now almost behaving like an established currency in that its movements are less volatile than previously and than some altcoins, and that its future performance is being viewed via the same lens as the future performance of other major fiat currencies against the US dollar.

Importantly, the weekly correlation coefficient between Bitcoin and the US Dollar dropped to 0.77 below zero in the week ending July 3, its lowest in seventeen months.

It appears that investors are more confident in the performance of stock market indices than currencies during a time at which the central banks of Europe and the United States are engaged in interest rate increases as attempts to curb inflation.

The Federal Reserve Bank has invoked a series of rate hikes, as have the Bank of England and even the European Central Bank recently which invoked its first rate hike for several years.

Therefore, the currency market is in focus, and Bitcoin has lost 60% of its value so far in 2022, whereas the NASDAQ composite index, which is the home of many publicly listed technology companies, has only declined in returns by 29% over the same period.

As far as measuring the US Dollar against other currencies is concerned, the US Dollar is in a very good position as the US dollar index (DXY), which is a metric that measures its strength against a basket of top foreign currencies, has been recently consistent around its January 2003 highs of 105.78.

The fervent influx of new Bitcoin investors who took to the cryptocurrency market in 2021 after Elon Musk's famous tweet which collapsed the value of 5 popular cryptocurrencies by almost a trillion dollars has subsided. These were analytical investors who 'bought the dip' realizing that soon it would correct, and it did, soon after Elon Musk put out another tweet saying that the environmental factors he had previously cited had been resolved.

This level of volatility has not been experienced this year, and there are even market pundits saying that Bitcoin may have 'bottomed out', with one on-chain indicator predicting that Bitcoin could go to $15,600 as a low point this year.

It is an interesting time, and the fiat currency volatility, especially that of the US Dollar, and the tinderbox situation of many western economies plus the stagnancy of Bitcoin is a conundrum of a different nature to that of just a year ago.

FXOpen Blog

EUR/USD and EUR/JPY Remain In Downtrend

EUR/USD started a fresh decline and traded below 1.0350. EUR/JPY is also diving and remains at a risk of more losses below 138.50.

Important Takeaways for EUR/USD and EUR/JPY

• The Euro started a major decline from the 1.0500 and 1.0480 resistance levels.

• There is a key bearish trend line forming with resistance near 1.0400 on the hourly chart.

• EUR/JPY also started a major decline below the 140.50 and 140.00 support levels.

• There is a major bearish trend line forming with resistance near 141.50 on the hourly chart.

EUR/USD Technical Analysis

The Euro failed to clear the 1.0500 resistance against the US Dollar. The EUR/USD pair started a major decline below the 1.0450 and 1.0350 support levels.

There was a clear move below the 1.0320 level and the 50 hourly simple moving average. The pair even settled below the 1.0280 level. A low was formed near 1.0235 on FXOpen and the pair is now consolidating losses.

EUR/USD Hourly Chart

On the upside, the pair is facing resistance near the 1.0290 level. It is near the 23.6% Fib retracement level of the downward move from the 1.0462 swing high to 1.0235 low.

The next major resistance is near the 1.0350 level. It is near the 50% Fib retracement level of the downward move from the 1.0462 swing high to 1.0235 low. Besides, there is a key bearish trend line forming with resistance near 1.0400 on the hourly chart.

A clear break above the 1.0400 resistance could push EUR/USD towards 1.0500. If the bulls remain in action, the pair could revisit the 1.0550 resistance zone in the near term.

On the downside, the pair might find support near the 1.0235 level. The next major support sits near the 1.0200 level. If there is a downside break below the 1.0200 support, the pair might accelerate lower in the coming sessions.

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ETHUSD and LTCUSD Technical Analysis – 07th JULY, 2022

ETHUSD: Bullish Doji Star Pattern Above $1040

Ethereum has started its bullish momentum against the US dollar after moving into a consolidation channel last week and is now trading above the $1100 handle in the US trading session.

We can see a continued appreciation in the prices of Ethereum, mainly due to the buying seen at lower levels by the medium-term investors.

We can see the formation of a super trend in the 15-minute time frame above the $1100 handle, and now are looking at $1200 and $1250 as the immediate targets.

The prices touched an intraday low of $1155 in the Asian trading session and an intraday high of $1201 in the European trading session today.

We can clearly see a bullish doji star pattern above the $1040 handle which is a bullish pattern and signifies the end of a bearish phase and the start of a bullish phase in the markets.

ETH is now trading above its pivot level of 1182 and moving into a mildly bullish channel. The price of ETHUSD is now testing its classic resistance level of 1190 and Fibonacci resistance level of 1197 after which the path towards 1200 will get cleared.

The relative strength index is at 61 indicating a STRONG market and the continuation of the uptrend in the markets.

The STOCHRSI is indicating a NEUTRAL level, which means that the prices are expected to enter into a consolidation phase in the short-term range.

All of the technical indicators are giving a STRONG BUY market signal.

All of the moving averages are giving a STRONG BUY signal, and we are now looking at the levels of $1200 to $1250 in the short-term range.

ETH is now trading above its 100 hourly simple and exponential MAs.

• Ether: bullish continuation seen above the $1040 mark

• The short-term range appears to be mildly BULLISH

• ETH continues to remain above the $1100 level

• The average true range is indicating LESS market volatility

Ether: Bullish Continuation Seen Above $1040

ETHUSD is now moving into a mildly bullish channel with the prices trading above the $1100 handle in the European trading session today.

We have also detected the formation of an ascending contraction triangle pattern in the hourly time frame indicating that the price is likely to climb higher crossing the $1200 level.

We can see that the price of Ethereum is slowly recovering against the US dollar and continues to gain traction today.

The current price action is positive for the markets, and the prices are expected to remain above the $1200 levels in the US trading session today.

The key support levels to watch are $1100 and $1159, and the prices of ETHUSD need to remain above these levels for the continuation of the bullish trend.

ETH has decreased by 3.30% with a price change of 37$ in the past 24hrs and has a trading volume of 13.489 billion USD.

We can see a decrease of 20.16% in the total trading volume in the last 24 hrs. which appears to be normal.

The Week Ahead

The on-chain data shows that the number of ETH holders is increasing which suggests that the global user activity is at an all-time high leading to an increase in the global investor sentiment.

The prices of Ethereum continue to remain above the important psychological support level of $1100 and most of the technicals are now indicating a bullish market.

The immediate short-term outlook for Ether has turned strongly BULLISH; the medium-term outlook has turned NEUTRAL; and the long-term outlook for Ether is NEUTRAL in present market conditions.

This week, Ether is expected to move in a range between $1100 and $1300, and next week, it is expected to enter into a consolidation phase above $1200.

Technical Indicators:

The moving averages convergence divergence (12,26): at 9.93 indicating a BUY

The average directional change (14 days): at 33.57 indicating a BUY

The rate of price change: at 2.59 indicating a BUY

The ultimate oscillator: at 56.07 indicating a BUY

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GBP/USD Faces Hurdles, EUR/GBP Could Correct Losses

GBP/USD started a fresh decline from the 1.2165 resistance. EUR/GBP declined heavily and tested the 0.8440 support zone.

Important Takeaways for GBP/USD and EUR/GBP

• The British Pound started a fresh decline from the 1.2165 zone against the US Dollar.

• There is a key bullish trend line forming with support near 1.1960 on the hourly chart of GBP/USD.

• EUR/GBP declined below the 0.8550 and 0.8500 support levels.

• There is a major bearish trend line forming with resistance near 0.8480 on the hourly chart.

GBP/USD Technical Analysis

The British Pound failed to gain strength above the 1.2200 level against the US Dollar. The GBP/USD pair started a fresh decline below the 1.2150 and 1.2120 support levels.

There was a clear move below the 1.2000 support level and the 50 hourly simple moving average. The bears even pushed the pair below the 1.1950 level. A low was formed near 1.1875 on FXOpen the pair is now correcting losses.

GBP/USD Hourly Chart

There was a move above the 1.1950 and 1.2000 resistance levels. The pair even climbed above the 50% Fib retracement level of the downward move from the 1.2165 swing high to 1.1875 low.

However, the pair faced sellers near the 1.2050 level. It struggled near the 61.8% Fib retracement level of the downward move from the 1.2165 swing high to 1.1875 low. On the upside, an initial resistance is near the 1.2020 level.

The next main resistance is near the 1.2050 zone. A clear upside break above the 1.2020 and 1.2050 resistance levels could open the doors for a steady increase in the near term. The next major resistance sits near the 1.2165 level.

If not, the pair might start a fresh decline below 1.1980. There is also a key bullish trend line forming with support near 1.1960 on the hourly chart of GBP/USD. The next major support is near the 1.1920 level. Any more losses could lead the pair towards the 1.1875 support zone or even 1.1800.

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Big tech earnings awaited; the strong US Dollar could be their achilles heel

The Big Tech stocks which are listed on prominent North American stock exchanges have been unusually volatile recently.

Large technology companies such as Microsoft, Apple and Google are often regarded by traders as steady, non-volatile investments which only move very slightly, hence their wide-ranging popularity among all kinds of traders and investors.

Recently, however, things have been somewhat different. There was a considerable collapse in the value of the stock of many big tech companies recently, which even as recently as May this year was being described by the mainstream media as 'far from over'.

Such volatility is rare, however now there is another element which is important to consider; the strong US Dollar.

The US Dollar has been surprisingly strong against its rival major currencies recently, and this strength is looking likely to affect the performance of the stocks of American big tech firms with a global audience such as Apple, Meta (Facebook), Alphabet (Google), Netflix and Tesla as their largest percentage of sales and revenue is generated outside the United States.

Therefore, being US-headquartered companies, the strong dollar vs weaker currencies in the regions in which these companies conduct most of their business means that there is a potential impact on revenues looming.

Asian currencies have fallen much less than the euro, and hedging and shifting production can cut currency volatility. This may seem an extreme logistics and organizational exercise, but it is possible given the global footprint of these multinational giants and the need to hedge against the currency market's considerable movements between US Dollar and other currencies lately.

To demonstrate how this actually works, it is worth looking at the 11% increase this year against a basket of currencies that the US Dollar has achieved, and especially the 12% it has gained against the euro.

This could potentially create a major issue as earnings season begins. For example, many companies included in the S&P500 index generate 29% of their sales from outside the United States according to Goldman Sachs.

These companies often sell those products or services in local currencies, then report financial results including those sales in dollars. Therefore, if Nike sells a pair of shoes for 100 euros, it was worth about $7 less at the end of its quarter than at the beginning of the same quarter.

Given the economic woes that exist in the United States such as spiraling inflation which is at its highest point in 40 years, and a cost of living crisis, it may be difficult to understand why the US Dollar is rising against other majors such as the Euro and British Pound, both of which are legal tender in regions that face the exact same economic woes as the United States. Mainland Europe and Britain are both mired in high inflation and cost of living crises, but the Dollar is trumping the Euro and Pound.

One possible explanation for this could be that the dollar has risen for the reason it often does during global economic weakness, in that it is viewed as the world’s reserve currency, and therefore a safe haven.

Perhaps Bitcoin had been viewed that way as it is decentralized and away from the politicians and central banks, but the US Dollar is even performing well against Bitcoin and has been for a number of weeks now.

This matter in which the US Dollar's strength may impact corporate earnings is interesting, therefore the big publicly listed stocks are equally interesting to watch as the earnings reports are released.

FXOpen Blog

ETHUSD and LTCUSD Technical Analysis – 14th JULY, 2022

ETHUSD: Ascending Triangle Pattern Above $1006

Ethereum was unable to sustain its bullish momentum, and after touching a high of 1251 on 9th July started to decline against the US dollar touching a low of 1006 on 13th July.

After this steep decline, we can see that the prices have recovered and started upwards correction with a bullish momentum.

We can see that ETH is gaining traction against the US dollar as the price remains supported above the $1050 handle in the European trading session today.

The prices touched an intraday low of $1075 and an intraday high of $1125 in the Asian trading session today.

We can clearly see an ascending triangle pattern above the $1006 handle which is a bullish pattern and signifies the end of a bearish phase and the start of a bullish phase in the markets.

ETH is now trading below its pivot levels of 1101 and is moving into a mildly bullish channel. The price of ETHUSD is now testing its classic resistance level of 1107 and Fibonacci resistance level of 1112 after which the path towards 1200 will get cleared.

The relative strength index is at 54 indicating a NEUTRAL market and the continuation of the uptrend in the markets.

The Williams percent range and commodity channel index are indicating NEUTRAL levels, which means that the prices are expected to enter into a consolidation phase in the short-term range.

Some of the technical indicators are giving a BUY market signal. Some of the moving averages are giving a BUY signal, and we are now looking at the levels of $1100 to $1150 in the short-term range.

ETH is now trading below both its 100 hourly simple and exponential moving averages.

• Ether: bullish continuation seen above the $1006 mark

• Short-term range appears to be mildly BULLISH

• ETH continues to remain above the $1000 level

• The average true range is indicating LESS market volatility

Ether: Bullish Continuation Seen Above $1006

ETHUSD is now moving in a mildly bullish channel with the prices trading above the $1050 handle in the European trading session today.

We have also detected the formation of MA20 and MA50 crossover patterns in the hourly time frame indicating that the price is likely to climb higher crossing the $1150 level.

We can see that the prices of Ethereum are slowly preparing for the next move above the $1100 level today.

The STOCHRSI is indicating an oversold market, which means that the prices are due to correct upwards in the short-term range.

The current price action is positive for the markets, and the prices are expected to remain above the $1000 level in the US trading session today.

The key support levels to watch are $1085 and $1093, and the prices of ETHUSD need to remain above these levels for the continuation of the bullish trend.

ETH has increased by 2.90% with a price change of 30$ in the past 24hrs and has a trading volume of 18.112 billion USD.

We can see an increase of 39.80% in the total trading volume in the last 24 hrs which is due to buying seen at lower levels by the medium-term investors.

The Week Ahead

On an upside potential $1300 remains as a major hurdle, and the price of Ethereum will test this resistance zone next week.

The price of Ethereum continues to remain above the important psychological support level of $1000 and some of the technicals are now indicating a bullish market.

The immediate short-term outlook for Ether has turned mildly BULLISH; the medium-term outlook has turned NEUTRAL; and the long-term outlook for Ether is NEUTRAL in present market conditions.

This week, Ether is expected to move in a range between $1000 and $1150, and next week, it is expected to enter into a consolidation phase above $1150.

Technical Indicators:

The STOCH (9,6): at 57.54 indicating a BUY

The moving averages convergence divergence (12,26): at 10.20 indicating a BUY

The rate of price change: at 0.321 indicating a BUY

Bull/Bear power (13): at 1.08 indicating a BUY

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Watch FXOpen's July 11 - 15 Weekly Digest Video

In this video, FXOpen UK COO Gary Thomson sums up the week’s happenings and discusses the most significant news reports.

• Euro and dollar reach parity.

• Inflation in the US rises again.

• Analysts' forecasts on Coca-Cola shares.

• Watch our short and informative video, and stay updated with FXOpen.

FXOpen YouTube

Gold begins to move upwards, but 1-year low still lingering

Gold has been struggling to maintain the values that it reached during the spring of 2022 over recent months, and by the middle of July it had reached a 1-year low.

Whereas the prices in May had reached $1,980 per ounce, Gold had dropped to $1,700 by July 14.

Today, however, a slight upturn in the value of Gold has begun to make itself evident, and this morning during the Asian trading session, Gold had risen to $1,720 per ounce.

Admittedly, this is still a low value compared to any time during the past twelve months, but the factors which are now beginning to influence the value of gold away from its two-month long decline to the low value reached at the end of last week.

This morning, Gold rose to $1,717 per ounce, which some are attributing to a weakness in the US Dollar. Ordinarily commodities and stores of value such as Gold would not be so influenced by the currency market, but the US Dollar's value is intrinsic to the value of Gold because Gold is valued in US Dollars and bought and settled in US Dollars.

Another US Dollar-related factor which could be contributing to the slight rise in the value of Gold is that the US Federal Reserve Bank intervened to cool down market expectations of a 1.0% rate hike on Friday, which in turn helped the Gold Price to defend the yearly low that it reached on Thursday.

Talk of interest rate increases in the United States are enough to blunt enthusiasm, especially when considering that there have already been a few this year, and that The Index of Consumer Expectations declined to its lowest level since May 1980 at 47.3. These very low figures were released alongside a 0.20% contraction by the US Industrial Production for June to favor Gold buyers or traders of the US Dollar against Gold.

There are talks of a 1% interest rate rise at the next Federal Reserve meeting, and that is a clear indicator that inflation is still a major concern for policymakers in the United States, just as it is in Europe.

The difference is that commodity prices are affected by these economic decisions which involve the US Dollar.

FXOpen Blog

BTCUSD and XRPUSD Technical Analysis – 19th JULY 2022

BTCUSD: Triple Bottom Pattern Above $19640

Bitcoin was unable to sustain its bearish momentum and after touching a low of 18991 on 13th July started to correct upwards breaching the $22000 handle on 18th July.

We can see a continued appreciation in the price of bitcoin as global investor sentiments have improved leading to buying action seen in the markets at levels above $19000.

The price of bitcoin is poised to clear the resistance zone located at $23000 after which we will see a continuous upsurge in the levels of BTCUSD.

We can clearly see a triple-bottom pattern above the $19640 handle which is a bullish reversal pattern because it signifies the end of a downtrend and a shift towards an uptrend.

Bitcoin touched an intraday high of 22937 in the Asian trading session and an intraday low of 21588 in the European trading session today.

Both the STOCH and Williams percent range are indicating overbought levels which means that in the immediate short term, a decline in the prices is expected.

The relative strength index is at 50 indicating a neutral demand for bitcoin at the current market levels.

Bitcoin is now moving above its 100 hourly simple moving average and 200 hourly simple moving averages.

Some of the major technical indicators are giving a buy signal, which means that in the immediate short term, we are expecting targets of 22000 and 23000.

The average true range is indicating less market volatility with a bullish momentum.

• Bitcoin: bullish reversal seen above $19640

• The Williams percent range is indicating an overbought level

• The price is now trading just above its pivot level of $21805

• Most of the moving averages are giving a buy market signal

Bitcoin: Bullish Reversal Seen Above $19640

The price of Bitcoin continues to appreciate above the $21000 handle, and we are now testing the important resistance level of $23000 in the European trading session.

The global sentiments continue to improve leading to broad-based buying by the medium-term investors.

We can see the formation of a rising trend channel and are facing the immediate targets of $22000 and $22700.

Bitcoin’s bearish bias was invalidated above $19000, and we can see a correction wave that is stronger than the previous one.

We can see the formation of a bullish ABCD pattern in the hourly time frame which indicates that we are heading towards the $25000 level.

The immediate short-term outlook for bitcoin is bullish; the medium-term outlook has turned neutral; and the long-term outlook remains neutral under present market conditions.

Bitcoin’s support zone is located at $20500, and the prices continue to remain above this level for the continuation of the bullish phase of the markets.

The price of BTCUSD is now facing its classic resistance level of 21868 and Fibonacci resistance level of 21963 after which the path towards 22000 will get cleared.

In the last 24hrs, BTCUSD has declined by 1.73% by 385$ and has a 24hr trading volume of USD 45.154 billion. We can see an increase of 39.50% in the trading volume as compared to yesterday, which is due to the buying seen by the medium-term investors.

The Week Ahead

The price of bitcoin is moving in a bullish momentum, and the immediate targets are $22500 and $23500.

The daily RSI is printing at 53 which means that the medium range demand continues to remain neutral.

We can see the continuation of the recovery mode in bitcoin with the prices touching the $23000 and $24000 levels next week.

The price of BTCUSD will need to remain above the important support level of $20000 this week.

The weekly outlook is projected at $23500 with a consolidation zone of $22500.

Technical Indicators:

The average directional change (14 days): at 25.10 indicating a buy

The ultimate oscillator: at 59.03 indicating a buy

The rate of price change: at 8.61 indicating a buy

The commodity channel index(14days): at 136 indicating a buy

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Big Tech stock languishes, whilst UK inflation rampages

This week started off with very big moves among the Big Tech stocks on North America's markets, a dynamic which has continued throughout the week so far.

On Monday, Apple stock fell more than 2% in its worst trading session in almost three weeks after Bloomberg revealed the company’s plans to slow hiring and spending to cope with a potential economic downturn. Yesterday, Meta (previously Facebook) was in the news, with its CEO Mark Zuckerberg stating quite ruthlessly that the company will simply tell all of its employees that it 'does not need' to simply go home.

There are now some commentators who consider that the big tech stocks listed on New York's prominent exchanges have even further to fall.

Apple stock has decreased in value by a remarkable 17% during the course of 2022, and other large software giants and internet stalwarts such as Microsoft and Google (Alphabet) having fallen in value over a sustained period of time.

A point of interest with this otherwise gloomy outlook is that the declining nature of Apple stock is having a bearing on the total value of all big tech stocks.

The spread between the prospective earnings multiples of the S&P 500 Information Technology Sector and the benchmark S&P 500 started this year at the highest it had been since 2004, which is encouraging, and shows that perhaps a few of the giants which have been struggling to keep the value of their shares up have affected the entire outlook for big tech when in reality there are firms doing well.

Overall, however, the differential between the downturn in big tech stock values in New York and other stocks on prominent exchanges elsewhere is interesting.

London's FTSE 100, largely consisting of less tech-focused stocks and more on long-established, age-old blue chip companies in mining, manufacturing, pharmaceuticals, finance, consumer retail and engineering industries, has been stable despite the United Kingdom's economic situation having reached a milestone inflation level which is now at its highest in 40 years.

It is apparent that many investors in the United Kingdom are looking for inflation-busting opportunities, and are taking a cautious approach, especially given that many London listed stocks are valued in Pounds and Pence, and at a time during which the governmental changes are creating uncertainty.

FXOpen Blog

Gold Price and Crude Oil Price Aim Fresh Increase

Gold price started a major decline below the $1,725 support zone. Crude oil price is attempting a fresh increase from the $88.80 support zone.

Important Takeaways for Gold and Oil

• Gold price struggled above $1,740 and declined against the US Dollar.

• Recently, there was a break above a key bearish trend line with resistance near $1,705 on the hourly chart of gold.

• Crude oil price started a downside correction from the $100 and $101 resistance levels.

• There was a break below a major bullish trend line with support near $98.95 on the hourly chart of XTI/USD.

Gold Price Technical Analysis

Gold price struggled to gain pace above the $1,750 resistance zone against the US Dollar. The price started a fresh decline and traded below the $1,725 pivot level.

There was a clear move below the $1,712 support zone and the 50 hourly simple moving average. The price even traded below the $1,700 level and formed a low near $1,680 on FXOpen. It is now correcting losses above the $1,695 level.

Gold Price Hourly Chart

There was a break above a key bearish trend line with resistance near $1,705 on the hourly chart of gold. The price even climbed above the $1,712 level but struggled to clear $1,720.

A high is formed near $1,720 and the price is now consolidating gains. On the downside, an initial support is near the $1,710 level. It is near the 23.6% Fib retracement level of the upward move from the $1,680 swing low to $1,720 high.

The next major support is near the $1,700 level or the 50% Fib retracement level of the upward move from the $1,680 swing low to $1,720 high, below which there is a risk of a larger decline. In the stated case, the price could decline sharply towards the $1,680 support zone.

On the upside, the price is facing resistance near the $1,720 level. A clear upside break above the $1,720 resistance could send the price towards $1,735. The main resistance is now forming near the $1,750 level. A close above the $1,750 level could open the doors for a steady increase towards $1,780.

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