Charts of the Week: Gold resumes uptrend, Oil approaching major support area

Market Analysis /
09 Oct 2019

XAU/USD managed to recover as sentiment in the stock market turned sour again. The precious metal is trading within a descending channel, but the overall uptrend remains intact and a breakout above the upper trendline could signal another move towards the yearly high around $1555. The Daily RSI suggests that XAU/USD is far from being overbought, and that there might still be some room to the topside.

XAUUSD
XAUUSD

USOIL has been extending its losses in recent weeks, and could soon test a critical support area between $50.40 and $50.60. The commodity bounced off those levels multiple times, but the pressure is growing and a clear break below could trigger another round of momentum selling, pushing it towards $48 support.

USOIL
USOIL

The UK100 index has been plenty of volatility recently, as Brexit fears continue to weigh on sentiment. From a technical perspective, the outlook remains slightly bearish, and the index ran into strong resistance ahead of the 200 DMA. To the downside, the next significant level of support is seen around 7084 points followed by the psychological support level of 7000 points.

UK100
UK100

EUR/GBP is gaining momentum following a slow recovery from the 0.8780 low, and could soon test the key resistance area between 0.9015 and 0.9050. Should the currency pair overcome this obstacle, a recovery rally towards 0.93 would seem more likely.

EURGBP
EURGBP

AUD/USD has been rejected at 0.6775 resistance, and the risk aversion in markets along with the renewed USD strength could potentially push the Aussie down to the key 0.6670 support level, which is also the current yearly low.

AUDUSD
AUDUSD

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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