WTI has held the key resistance level of $69.30 today, marking a pivotal level on the intraday charts. Here, the resistance trend of the bear channel also came into focus. With support at 68.60/68.70 area broken, this level is now the most important short-term resistance to watch now. I think if we get a retest of this level from underneath, it could get sold and...
S&P 500 futures have been marching higher for more than a week, attracting buying on dips towards uptrend support. With RSI (14) and MACD confirming the bullish price action, the path of least resistance looks higher, putting a retest of 6053.25 on the radar.
With the bias to buy dips near-term, there are two setups available: the first would be to wait for a...
A softer US dollar and falling bond yields typically create a favourable environment for gold, but not today. Prices have plunged sharply, testing the 200DMA, a level that has made for reliable buying in recent times. Reports of a potential Israel-Lebanon ceasefire may explain the drop, but given past false dawns, price action may prove more reliable than...
Crude oil prices tumbled on the back of reports of a ceasefire between Israel and Lebanon. The news also sent gold prices lower. If confirmed, this will remove some of the geopolitical premium in oil prices, which had provided support for oil since Israel’s war started.
Today's drop means, WTI has held below key resistance around $71.50 - $72.50 range. While...
Following today's stronger Canadian retail sales report, with headline sales coming in at +0.9% m/m vs. +0.3% expected, the Canadian dollar initially strengthened slightly. But later on we saw the US flash Services PMI come in well ahead of expectations at 57.0 vs. 55.2 eyed and 55.0 last. Though UoM Consumer Sentiment got revised lower unexpectedly to 71.8 from...
After last week's big drop, gold has bounced strongly in the last few days. But it has now arrived arrived at former support zone between $2645 to $2666. Once support, can this area turn into resistance and lead to another drop? The key downside targets are shown on the chart, with the first bearish target being at $2600.
By Fawad Razaqzada, market analyst with FOREX.com
The long end of the US Treasury curve has been influential for FX markets recently. The rolling 10-day correlation between US 10-year yields with the DXY, EUR/USD, GBP/USD, and USD/JPY is either strongly positive or negative. Even gold shows a notable -0.73 correlation, highlighting the influence of long bonds on broader markets.
Given the inverse relationship...
What are gaps?
Market gaps provide insights into critical trading behavior defined by an empty space between two distinct trading points. A gap up indicates that mostly buyers rushed to accumulate a position in the market from one point to the next, while a gap down shows the opposite and that sellers rushed in. Gaps can quite literally be seen on the chart as...
GBP/USD would likely be a lot higher heading into today’s UK inflation report if not for the Ukraine headlines yesterday. The bullish pin coming a day after a bullish engulfing candle says as much, reflective of plenty of willing buyers below 1.2613.
With RSI (14) breaking its downtrend and MACD looking like it may soon flick higher, momentum also looks to be in...
The Canadian dollar delivered a reversal signal against the greenback on Monday, with USD/CAD printing a bearish engulfing candle on the daily chart. After trading within an uptrend since early November, this suggests directional risks could be turning, even if momentum indicators like RSI (14) and MACD are yet to confirm.
USD/CAD briefly tried to bounce during...
While AUD/USD has maintained a strong inverse relationship with US Treasury yields across the curve over the past fortnight, the connection is weaker compared to its link with China-related variables over the same period. This suggests that any rebound in the Aussie this week may require not only stability in US rates but also a recovery in Chinese sentiment and...
Originally developed for commodities, the Average True Range (ATR) indicator is a versatile tool used across various asset classes, like forex pairs and more. ATR helps traders gauge market volatility and make informed decisions, as ATR is essentially a moving average of a market's true range.
For traders, this is essential information because it explains how...
A squeeze may be underway in silver with a hammer candle printing on Thursday. Traders took one look at the intersection of uptrend support established in February and horizontal support at $29.66 and baulked, sparking a price reversal often seen around market bottoms.
While indictors such as RSI (14) and MACD continue to provide negative signals, favouring a...
Although oil prices were trading higher at the time of this writing, it is becoming increasingly difficult to foresee a big rally at this stage, without any supply-side shocks.
WTI's price action has been quite heavy as it continues to make lower lows and lower highs. While it has held its own around the December 2023 levels of around $67.00 to $68.00 area, this...
Whether you’re talking price action or momentum, AUD/USD looks terrible on the daily, taking out the intersection of the US election lows and downtrend support with ease on Wednesday.
Momentum is with the bears; RSI (14) has cut its uptrend like a hot knife through butter while MACD has crossed over from above, confirming the bearish signal. Selling rips and...
Hang Seng futures look heavy. Friday’s bearish engulfing candle has been followed by two consecutive declines, leaving the price teetering just above horizontal support at 20280.
With RSI (14) and MACD providing bearish signals on momentum, the inclination is to sell rallies in the near-term. It may also see a potential break of 20280 stick where so many other...
The SPX hit a new all-time high at the open, adding to its big gains from last week when Trump won the US election quite comfortably in the end. But the index it has since drifted lower, moving back below last week's high of 6013, potentially suggesting that the bullish momentum is fading after being up for several days. At the time of writing, it was approaching...
A lack of direct stimulus measures in China likely contributed to the rough end for crude oil last week, with prices not only breaking minor uptrend support but also closing below the 50-day moving average.
It’s the latter that’s got me eyeing a potential short setup. The ratio of how often the price has traded through this level versus how often the break has...
