Charts of the Week: Oil price volatility to persist + GBPUSD may soon resume downtrend

AxiTrader

Milan Cutkovic at AxiTrader looks at the markets of the week, charting the interesting movements of popular asset classes.

By Milan Cutkovic at AxiTrader

Oil prices saw a big jump on Thursday, after US President Trump announced that Russia and Saudi-Arabia may soon agree on an output cut. However, the OPEC meeting has been delayed and USOIL is likely to come under increased pressure at the beginning of the new trading week. Regardless of the outcome, high volatility is set to persist in the near-term. To the topside, traders will be looking at the psychological resistance level at $30, which is also close to the 23.6 % Fibo of the Jan-Mar decline. To the downside, initial support is seen at $23.50/60 followed by $21.50 and $20.

XAUUSD has seen some wild price swings too. While the risk aversion is keeping the precious metal bid, the Dollar strength has been capping the topside recently. Traders will be closely watching the $1564 level for support, while $1643 is the major obstacle Gold needs to overcome for the uptrend to resume.

GBPUSD may soon resume its downtrend, as resistance at $1.25 proved to be too strong once again. A break below 1.2125 support would pave the way for a decline towards $1.18.

The last trading week ended up being a rather uneventful one for equity markets. Following the collapse in March, the US30 index is consolidating within a triangle pattern, and close to testing the 21 DMA. However, this is likely only the calm before the storm, as a breakout seems imminent.

Similar price action can be observed in the GER30 index, which is consolidating between 9300 and 10,000 points. The index struggled with the psychological resistance level and there are so far few signs of a sustainable recovery.

The information is not to be construed as a recommendation; or an offer to buy or sell; or the solicitation of an offer to buy or sell any security, financial product, or instrument; or to participate in any trading strategy. Readers should seek their own advice. Reproduction or redistribution of this information is not permitted.

The subject matter and the content of this article are solely the views of the author. FinanceFeeds does not bear any legal responsibility for the content of this article and they do not reflect the viewpoint of FinanceFeeds or its editorial staff.

Find out more about AxiTrader here.

Read this next

Retail FX

Lion launches multi-currency trading accounts powered by AI

The core advantages of multi-currency trading account services include enabling significant cost savings and higher efficiency for investors.

Inside View, Interviews

Interview: Stanislav Bunimovich on Finalto’s white label solution

To explore what makes Finalto’s white-label solutions stand out in such an incredibly competitive market, Finalto sat down with its Chief Operating Officer, Stanislav Bunimovich, for an interview. 

Digital Assets

Talos acquired Cloudwall for a better portfolio management system

Cloudwall’s additional expertise in portfolio risk systems further positions Talos at the forefront of portfolio management systems across spot, futures, perps, and options.

Digital Assets

Bybit’s Bitcoin market share explodes, up by 400%

“This milestone is a testament to our sharp trading products and the loyalty of our users. As the industry evolves, Bybit remains at the forefront, ready to set new standards in the crypto trading world.”

Crypto Insider

Why Self-Custody is the Key to Secure Crypto Trading

Crypto trading is fast gaining popularity; as of writing, the total market capitalization stands at $2.3 trillion, double what it was at the onset of the 2021 bull market.

Industry News

UK FCA sues Lee Steven Maggs for FX scam Kube Trading

‘Kube Trading’ allegedly received around £2.67 million for FX trading and concealed significant losses from investors.

Market News

AUD/USD Soars Following Inflation Report

Australia’s CPI surge hints at prolonged tight monetary policy. Watch the Aussie dollar as US economic data looms.

Institutional FX

GCEX reports drop in turnover in 2023 due to crypto winter

“The crypto winter had a huge impact across the industry, and GCEX was no exception. However, in response to the decline in revenue, we have been resilient and adaptive, navigating our costs effectively and diversifying revenue streams such as introducing staking services for institutional and professional clients.”

Institutional FX

FxGrow taps Integral’s SaaS brokerage workflow

“FxGrow’s decision to partner with us is indicative of the growing advantage for brokers to leverage tier-one institutional-grade technology while maintaining control over their own platform. Integral is well-positioned to provide the SaaS solutions that will enable these businesses to better compete in the market.”

<