Gold is benefiting from the rise in uncertainty in global markets, and as the risk of full-blown trade war rises, the precious metal could extend its rally towards the psychological resistance level at $1500. Traders will be watching the $1436-38 area for support. Meanwhile, the Daily RSI is not showing overbought conditions yet, suggesting there might be some more room to the upside. Second line of support is seen at the 21 DMA - around $1426 - followed by the rising trendline from the late June low.
USOIL found itself in a short-term downtrend. Price broke below the 200 DMA and is trading within a descending channel. Geopolitical tensions have waned slightly, while fears about an economic slowdown are keeping the selling pressure intact. Traders are now looking at the $53.80 level for key support. A clear break below may add to downside momentum and push USOIL towards the June low of $50.75.
GBPUSD has had a small recovery rally, but it appears that this has primarily been triggered by the Dollar weakness, rather than the Pound being in demand. Concerns about a hard Brexit are likely to keep the currency under pressure, and strong resistance can be expected ahead of the $1.2380 level. To the downside, a break below $1.20 could lead to intensified selling pressure.
GER30 had a difficult start into the new trading week, declining more than 400 points on Monday. The index has found some support ahead of the 11,300 level, but the recovery looks fragile as stock market sentiment remains sour. China allowing the Yuan to devalue shows that the country does not seem a trade deal to be a likely scenario in the near-future, which is quite concerning for investors. Expectations about further monetary policy easing by the ECB and the Fed are keeping stocks supported, but even that will not be sufficient if the trade war between the USA and China escalates.
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Stocks recover as Fed Chair Powell says, "The job is not done"; Oil's raging bull and FX's roaring commodity currencies