Brent (UKOil) Forming Double Top? Canadian Dollar in Focus. Gold Heading for Support at $1900.
Hey Valutraders! Is Brent Crude forming a Double Top?
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I’m Brad Alexander and in today’s Market Blast, let’s take a look at USDCAD, EURCAD, CADCHF, Gold (XAUUSD), and Brent Crude (UKOil).
On Monday we looked at the possibility of a reversal on Crude Oil but on Tuesday OPEC extended its production restrictions and prices rose.
From the technical side, we see price action reaching resistance at $90.50 and we wonder if we are seeing the formation of a Double Top with the neckline at $89.
Let’s keep an eye on this one.
We see that the Stochastic Oscillator is a bit confused and on MACD the signal line is passing out of the histogram which could indicate a bearish move.
The daily chart is still bullish on MACD but the stochastic oscillator is turning down from overbought.
Wait for confirmation and watch the news on Crude Oil production.
As we know, the price of crude oil affects the CAD but we are seeing weakness on USDCAD, but strength everywhere else.
This mixed strength and weakness can give us more trading opportunities as we have 3 economic news events this week with a PMI and a speech from the BoC today, and Employment Change figures tomorrow.
On CADCHF, for example, we see an Ascending Triangle with this level of resistance just above 0.654.
If price action breaks above we can see from the daily chart the potential for an upside move.
EURCAD gives us the opposite idea however with price action forming a Falling Wedge and divergence from the stochastic oscillator.
Again, with the CAD news, look for moves in price action against the trend to enter, with confirmation, with the trend.
XAUUSD is falling toward this level of support at $1900, based on USD strength but we need to keep an eye on our indicators.
The Stochastic Oscillator is falling into oversold territory and MACD may be turning bullish.
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