Gold (XAU)
Key news events today
No major news events.
What can we expect from Gold today?
Gold prices have ranged approximately between $1,935/oz and $1,950/oz since 29th September. With no major catalyst on the horizon, prices could trade within these bounds today – this precious metal is currently trading around the $1,940/oz region.
Technical
The XAU/USD chart currently demonstrates a bearish overall momentum, suggesting a trend towards downward price movement.
There’s potential for a bearish continuation towards the 1st support level.
The 1st support at 1931.97 is recognized as a pullback support, indicating a historical area where the price found support.
The 2nd support at 1913.49 is marked as an overlap support, aligning with the 61.80% Fibonacci Retracement, which enhances its significance as a potential support zone.
In terms of resistance levels, the 1st resistance at 1943.88 is identified as an overlap resistance, implying historical instances of the price facing resistance around this level.
The 2nd resistance at 1953.55 gains importance as an overlap resistance and aligns with the 78.60% Fibonacci Retracement, making it a noteworthy zone for potential price reactions.
Oil
Key news events today
China Caixin Composite and Services PMI (1:45 am GMT)
What can we expect from Oil today?
Services PMI in China printed at 51.8, signalling an eight consecutive month of expansion. However, August’s reading was lower than the estimate of 53.6 as well as the previous month as business activity and new orders both showed slower increases. The Composite PMI also showed overall activity in China expanding but at the softest rate since January. Insufficient domestic demand and weak expectations are acting as a bearish catalyst for crude prices this morning with WTI oil slipping towards $85.00 per barrel.
Technical
The WTI chart is currently demonstrating a bearish momentum, indicating a downward trend in price movement. Given this bearish sentiment, there is potential for price to experience a bearish continuation towards the 1st support level.
Additionally, the Relative Strength Index (RSI) is displaying bearish divergence compared to the price, which suggests the possibility of a reversal occurring soon. This divergence in RSI adds to the overall bearish outlook and potential for a price reversal.
The 1st support level at 84.06 is identified as a pullback support that aligns with the 23.60% Fibonacci retracement level. Furthermore, the 2nd support level at 83.15 is also identified as a pullback support that coincides with the 61.80% Fibonacci projection level.
To the upside, the 1st resistance level at 85.52 is marked as a multiple swing-high resistance while the 2nd resistance level at 86.16 is identified as a resistance level that aligns with the 127.20% Fibonacci extension level.
