Weekly Technical Forecast: Dow and EURUSD Reverse, Gold and Oil Extend Runs
Faced with the prospect of forcing key breakouts that could systemically alter the markets bearing, the US indices and EURUSD instead folded to technical pressure. Not all markets have lost traction and conviction. Both gold and oil have extended major bullish and bearish trends, respectively.
The Dollar rallied off support last week, but it is still questionable as to whether it can pick up more momentum from here or not; Fed meeting this week.
Gold prices rallied for a fourth-consecutive week with the advance now testing the 2016 resistance slope. These are the levels that matter on the XAU/USD weekly chart.
Crude oil prices may be due for a near-term correction on reversal technical signals, but oil net-long positioning offers a bearish-contrarian bias, opening the door to testing 2018 lows.
The Euro put in for a notable retreat through the second half of last week, but its reversal is not as intense as EURUSD may insinuate. Will momentum spread in the week ahead?
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