Technical Checks For Gold, WTI Crude Oil & US Dollar Index: 08.06.2018

GOLD

With short-term ascending triangle portraying Gold’s price moves, the yellow metal is expected to head towards $1306.50-$1307.00 horizontal-region at present but its following rise seem doubtful. In case the Bullion surpasses $1307 barrier, it can escalate the recovery to $1310 & $1317 prior to confronting the $1325-26 resistance-area. On the contrary, the pattern support of $1292 becomes crucial for traders to watch, breaking which the precious-metal can drop to $1285 rest-point. Given the sellers refrain to respect the $1285 mark, recent low of $1282 and the $1276, comprising 61.8% FE, could entertain the sellers.

WTI Crude Oil

Considering WTI Crude Oil’s recent pullback and inability to surpass the support-turned-resistance mark of $66.20, the Breakout-Pullback-Continuation (BPC) formation is likely dominating near-term trade sentiment of energy traders. Hence, the $64.10 can continued to being considered as immediate support as far as the quote remains below $66.20, which if broken could highlight the $62.50, the $61.60 and the $60.00 as crucial rest-points. Assuming further weakness at energy front below $60.00, the $58.80 and the $58.00 may please the Bears. Meanwhile, a D1 close beyond $66.20 could negate the chart pattern and might push buyers to target $66.80 and the 50-day SMA level of $67.80. Moreover, Crude’s advances above $67.80 enables it to aim for $69.30 and the $70.00 round-figure.

US Dollar Index [I.USDX]

Not only its inability to break 95.05-15 resistance-zone but dip beneath the six-week old ascending trend-line also signals the weakness of US Dollar Index. As a result, the gauge’s current advances might find it difficult to conquer the immediate TL resistance, at 94.00, and may take a U-turn to re-test 93.20 & 92.65 supports. Should the quote declines below 92.65, the 92.25 can offer an intermediate halt before increasing the importance of 92.15-92.00 support-area, comprising 50-day & 200-day SMA. Alternatively, break of 94.00 could help the gauge target 94.50 and then confront the 95.05-15 region. In case if greenback optimists fuel the index above 95.15 on a daily closing basis, the 95.55, the 95.80 and the 96.00 could become their favorites.

Cheers and Safe Trading,
Anil Panchal