Weekly Outlook: Can Crude Oil Keep The Momentum Going + What Gold Traders Will Be Watching
USOIL
Fundamentals:
* Renewed optimism about the on-going trade talks between the US and China have supported Oil prices
* The two nations are the largest oil consumers; a trade deal could help to ease concerns about a decrease in demand
* The rally in USOIL has also been fuelled by the OPEC output cuts and US sanctions on Iran and Venezuela
* OPEC members reduced their output as planned, and further cuts are possible
Techs:
* The negative RSI divergence on the H4 chart suggests that USOIL is showing first signs of weakness
* Key support to watch lies between $55.25 and $55.55 - which acted as major support/resistance several times in the past
* Oil bulls need that level to hold, or a deeper correction could follow
* Overall uptrend remains intact however, and the daily RSI indicates there might be more room to the upside
Key Events This Week:
* TUESDAY - API Weekly Crude Stock Data
* WEDNESDAY - US EIA Weekly Petroleum Status Report
* FRIDAY - Baker Hughes US Oil Rig Count
GOLD
Fundamentals:
* Demand for the precious metal has declined slightly following an increase risk appetite and the recovery in equity markets
* However, on-going Dollar weakness continues to support XAU/USD
* Gold traders will be focused on the speech by Fed Chair Powell, as well as three other FOMC members
* A further decline in rate expectations could spark fresh demand for Gold
Techs:
* The uptrend is stable, although the metal has been struggling slightly after the clear rejection at $1350 resistance
* Gold bulls remain in control as long as the price remains above the crucial support level at $1300
* The trendline from the November ´18 low is also worth keeping an eye on
* Daily RSI suggests XAU/USD not yet in overbought territory
Key Events This Week:
* TUESDAY - Fed Chair Powell speaks
* WEDNESDAY - US ADP Nonfarm Employment Change, Fed Chair Powell speaks
* THURSDAY - US GDP & Initial Jobless Claims, FOMC Members Bostic, Harker and Kaplan speak
* FRIDAY - US ISM Manufacturing Index
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