Welcome to the last trading week of August!
End the month strong by taking advantage of WTI’s resistance and XAU/USD and EUR/USD’s support zones.
Check out their long-term charts!
U.S. Oil (WTI): Daily
U.S. Oil (WTI) Daily Chart
U.S. crude oil prices found support at $86 but it looks like there are enough sellers to limit the Black Crack‘s gains below $96.
And why not? $96 is not only near the daily chart’s 200 SMA, but it’s also around the 38.2% Fibonacci retracement of July’s downswing AND a major support zone from the first half of 2022.Oil sellers can take cues from Stochastic’s “overbought” signal and start scaling in positions in case WTI drops back to its $96 lows.
Feel like $86 is a long-term bottom for the commodity?
You can wait for a clear break above the 200 SMA and take advantage of current prices possibly becoming the bottom of a long-term range instead.
Spot Gold (XAU/USD): Weekly
Spot Gold (XAU/USD) Weekly Chart
Spot gold (XAU/USD) is about to hit the $1,700 mark that has not failed as technical support since April 2020.
In fact, the weekly chart shows how $1,700 is the range support to the $2,000 mark’s range resistance!
Stochastic isn’t any help right now as it hangs near the middle zone.
Still, range playas who are confident that $1,700 will hold as support can buy at current or slightly lower prices for a good risk ratio.
Just be ready to flip your biases in case XAU/USD starts breaking the major support zones that we’ve marked!
EUR/USD: Monthly
EUR/USD Monthly Forex Chart
So EUR/USD is now firmly below parity. How low can EUR go? I’m looking at the MONTHLY chart for clues.
The pair is still poppin’ uber bearish candlesticks so now I’m eyeing the .9700 psychological handle that lines up with the 78.60% Fibonacci extension level on the monthly time frame.
The .8700 – .8900 zone can also get some attention because it was an area of interest back in 1981, 1986, and 2001 – 2002.It also represents the full Fibonacci extension of 2014 – 2015’s downswing.
Think the euro will fall to these levels?
Stochastic has been in the oversold zone since November 2021 but keep an eye out in case our areas of interest get enough bullish momentum to propel the oscillator above its extreme zone.
EUR bears can take advantage of the current selling pressure and target the potential inflection points that we’ve marked.
Meanwhile, long-term EUR bulls can wait for potential bounces and upswings near the Fib extension levels.
