Crude Oil Prices Might Rebound But Sentiments Signal Topping


  • Prices of gold idling below $2000/oz, overall trend remains bullish
  • Risk on the backdrop may make for the wholesome pull-up in the short term
  • Prices of crude oil mark the top with the surging wedge support break
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The prices of crude oil dropped, echoing the extensive weakness in the cyclical assets. The growth seemed to drive the Dow Jones industrial average resoundingly feel as the Nasdaq 100 ended the day higher. This seemed to show that the bets on the extended interruption of the physical-economic activity and the parallel preference for companies within the lockdown friendly tech space.

Much of the selloff was technically registered in this run-up to and the key aftermath for the release of the 2nd quarter US Gross Domestic Product data. This showed a new record 32.9% drop. Also, the markets reversed uptrend to reduce the losses after the numbers managed to cross the wires. Nevertheless, experts suggested a much worse 34.1% ahead of its release. This is an abysmal outcome amidst the onset of the coronavirus outbreak.

On the other hand, the prices of gold rose as the data backdrop further inspired the downtrend in the interest rates, ostensibly reflecting the bets on the expected recovery that keeps the fiscal policy at the ultra-dovish environment for the coming days.


The S&P 500 futures signal a cautiously risk-on tip is coming forth from this point. The scary-looking European GDP might pass without any fireworks having been steadily foreshadowed by the analogous numbers on Thursday. However, the uptrend in the Fed’s preferred PCE US inflation measure will without a doubt be judged moot. Taking note of the FED’s loud protestation against considering the rate increments.

That possibly matches perfectly with the prices of crude oil that might have scope to further retrace the most recent losses. If this upbeat mood continues over the weekend. As a result, it’s evident that in the future the prices of gold will not be clear-cut, improving the sentiment might limit the scope for the additional decline in yields. However, the path of the least resistance appears to point upwards with the USD still under pressure.


The prices of crude oil broke much lower to further confirm the bearish formation of the rising wedge chart. So, the next area of significant support seems to be marked by the chart inflation point at about 34.78. The test under the $30/bbl. the number is seen afterward. On the other hand, turn up and key resistance ranging between 42.40 and 43.88 zones might open doors for more challenges of this $50/bbl handles.



The prices of gold are idling under resistance at about 1985.67 Fibonacci (100% expansion). The break over this hurdle that was confirmed on the day closing basis largely exposes 2059.74 (123.6% level). On the other hand, the turn back under this 78.6% Fibonacci trading at 1918.49 might set a stage for retesting at 1865.76 (61.8% expansion). This also shows that Gold Prices Fall With Wall Street Stocks As US-CHINA Tensions Emerge.


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