The recovery rally in USOIL has slowed down in recent days, as the commodity is struggling with resistance around the 61.8 % Fibo of the May-June ´19 decline. However, bulls remain in control as long as the price remains above the 200 DMA, and short-term technicals are still positive. The next big hurdle for Oil bulls will be the $63 resistance level, which is also close to the 76.8 % Fibo.
Silver got rejected once again at the falling trendline from the June high. Nevertheless, support at the 200 DMA remains intact, and there is still enough upside momentum to keep XAG/USD supported. A clear break above the June trendline could pave the way for another test of the important $15.55 resistance level. The Daily RSI remains below 70, suggesting that there might be some more room to the upside.
The rally in GBPUSD quickly lost its momentum, and it seems that downside pressure is increasing steadily as Brexit concerns continue to weigh on the British Pound. Cable broke below $1.2520 support, and bears are now targeting a retest of the important $1.2440. To the topside, strong resistance can be expected in the area between $1.2580 and $1.26.
The Aussie Dollar has been benefiting from the increased risk appetite in equity markets and renewed Dollar weakness, but the recovery rally has been rather slow. AUD/USD is struggling to get itself away from the big 0.70 level and strong resistance is seen at the 200 DMA - near 0.71. Should the currency pair fail to clear this level in the near-term, bears are likely to retake control, and 0.6830 would be the next target for them.
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In this edition of “Charts of the Week”, we will have a look at precious metals where the short-term outlook has turned brighter, as well as Bitcoin which is going through a major sell-off right now, followed by Oil – which is finally on the move after days of consolidation – and two major currency pairs.