Technical Analysis for Oil, Gold and EUR/USD for 08.01.2020

USCrude – oil 

USCrude oil has been up to $65.60 per barrel amid the news from Iraq where the Iranian airforces attacked the US bases. This mission was called Martyr Soleimani in renege for the murder of general Qassim Suleimani by the US military forces.

By now, the situation seems to have stabilized, and the price rolled back to level 63.30.

Oil middle-term trend is still up, and so, enter purchases according to the pattern with the target at today’s high if the price is corrected down to the trend key support [61.90 – 61.52].

It is clear from the short-term chart that the key support to the short-term uptrend, Intermediary Zone [62.86 – 62.67] has been held up. A double bottom pattern was formed and worked out last night.

Despite a strong price rise, buyers haven’t broken out the strong resistance, and the rates are back below the zone.

Sellers are trying to reverse the short-term trend down. The price is trading a little lower than Intermediary Zone [63.77 – 63.58]. If the US session closes the price below the zone today, we shall tomorrow sell oil down to the lower Target Zone [61.90 — 61.52].

USCrude: Trading decisions for today:

Buy according to the pattern in Intermediary Zone [63.77 – 63.58]. TakeProfit: 65.60. StopLoss: According to pattern rules.

XAUUSD – gold

Gold price strengthened during Iran’s military campaign last night. The price has hit its six-year high and continues rising. The middle-term uptrend is strong. If the price is consolidated above Target Zone 3 [1585.1 – 1580.6], the next upside target will be Target Zone 4 [1630.1 — 1625.6].

It is clear form the shorter timeframe that the short-term trend continued last night. The price grew up from the key support zone that was in the range of [1565.9 – 1563.7] then. The 1-2-3 pattern was worked out. It is clear in the shorter timeframes, starting from M30 and shorter. All buy targets have been reached.

After Gold Zone 3 [1605.3 – 1603.1] was reached, the price has bee corrected down to the new key support [1588.8 – 1586.6]. Look for new buy trades according to the pattern with a target to break through the local high and test GZ3.

Alternative scenario is the zone breakout downside and the trend reversal down. In this case, we shall sell gold down to the lower Target Zone [1566.3 — 1561.8].

XAUUSD: Trading decisions for today:

Buy according to the pattern in Intermediary Zone [1588.8 – 1586.6]. TakeProfit: Gold Zone 3 [1605.3 – 1603.1], 1610.5. StopLoss: According to pattern rules.

EURUSD – Euro/Dollar

The EUR/USD is being corrected down in the middle-term uptrend. The strong resistance Target Zone 2 [1.1197 – 1.1183] was not broken out yesterday, so, expect the price to move down to the area of Target Zone [1.1095 – 1.1081] today.

In any case, it is now relevant to enter purchases according to the pattern.

The short-term chart displays the reversal of local trend down. Intermediary Zone [1.1167 – 1.1160] was broken out and the US session closed the price below the zone yesterday. It is now relevant to enter sell trades with a target at Target Zone [1.1095 – 1.1081].

The broken-out zone of [1.1167 – 1.1160] can serve as a reference zone to look for sell entries. It is now strong resistance.

Today, I recommend expecting a correction to have good sell prices and looking for a pattern that will allow us to identify a good entry point with an optimal Reward/Risk ratio.

EURUSD: Trading decisions for today: 

Sell according to the pattern in Intermediary Zone [1.1167 – 1.1160]. TakeProfit: Target Zone [1.1095 – 1.1081]. StopLoss: According to pattern rules.