Home / Blog / Market Analysis / Charts of the Week: Gold rally resumes, while GBP whipsaws + Oil traders waiting for a breakout

Charts of the Week: Gold rally resumes, while GBP whipsaws + Oil traders waiting for a breakout

Market Analysis /
05 Sep 2019

XAUUSD continues to consolidate, but shows no signs of exhaustion yet. The rising trendline support from the late August low is holding, and the RSI is not showing overbought conditions yet. Gold bulls are eyeing the $1555 resistance level as next major hurdle, and a clear break above could potentially pave the way for an extension of the rally towards the psychological resistance level at $1600. To the downside, support is seen at the 23.6 % Fibo at $1518.64.

XAUUSD
XAUUSD

USOIL is still trading within a triangle pattern, as the 200 DMA has capped the topside recently. Oil traders are now waiting for a breakout following several weeks of consolidation. To the topside, the focus will be on $56 resistance, which is also close to the 200 DMA, and the upper triangle trendline. To the downside, traders will keep an eye on the lower triangle trendline and $54.00 level.

USOIL
USOIL

GBPUSD is seeing increased volatility as the Brexit drama continues. The currency pair reached a fresh yearly low on Tuesday, only to rebound slightly later and rally towards the 1.22 level. There is still a lot of uncertainty, which should keep GBP volatility at elevated levels. To the topside, the important area of resistance to watch is $1.2310-1.2380, where GBP/USD failed in late August. Meanwhile, traders will watch the $1.20 level to gauge if it is the bulls or bears who are in control.

GBPUSD
GBPUSD

GER30 cleared resistance at 11.855 points and managed to break above the big 12.000 level as well, and bulls are now eyeing 12.184 as next target. However, many investors remain cautious amid the political risks and concerns about the trade war between the US and China. Therefore, DAX bulls may stand on thin ice.

GER30
GER30

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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