OIL.WTI
Latest rebound on the oil market suggests that the downward move is coming to an end. The declines were halted slightly below the key support area at $51 handle. Looking at the daily time frame, one can see that the local double bottom formation was painted. Buyers may be even more encouraged after a hammer candlestick pattern surfaced on the chart yesterday. As long as the price sits above $52.15 handle (neckline of a double bottom pattern), the upward correction looks to be the base case scenario. The 38.2% Fibonacci retracement can be considered as the nearest resistance to watch. In case a bigger upward move occurs, the next resistance is marked with previous price reaction and 50% Fibonacci retracement ( $57.25). On the other hand, a return below $51 handle could see downward move accelerate.
OIL.WTI D1 interval. Source: xStation5
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The upward move on the gold market accelerated yesterday and is being continued today. Gold is trading near its YTD high and there is a chance for the upward move to extend further. In case of a break above the YTD high, the nearest resistance to watch can be found at the $1632 handle, where the 127,2% Fibonacci retracement of the recent correction move is located. Should the commodity break higher, the next resistance can be found at 161.8% Fibo. An earlier-broken downward trendline may act as a key support for now. Demand-side reaction may also occur at local high from February 3 ($1590).
GOLD D1 interval. Source: xStation5
EURUSD
The major currency pair plunged to fresh YTD lows. EURUSD fell below 1.08 handle yesterday, and tested key support marked with the 127.2% Fibonacci retracement of the upward move started in October 2019. The 1.0785 handle could be the adequate level to start a rebound, but one should remember that the main trend remains downward. In case of an upward correction the move may be limited by the upper limit of Overbalance structure therefore the area at 1.0900 should be considered as a key resistance. As long as the price sits below it, the upward move should be considered a local correction in a strong downward trend. The next key support can be found at 161.8% Fibonacci retracement, at 1.0660 handle.
EURUSD D1 interval. Source: xStation5
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