The last few days brought us a correction on the USD. In theory, a weaker dollar should support commodities but that’s just an expected reaction which won’t necessary be applicable in these volatile times that we are living now. As if the coronacrash wasn’t enough we also have a war on the oil market which is a bearish brother-in-arms of the industry’s crippling demand. As you can see, the surroundings of the Oil Market are rather pessimistic.
The Technical situation does not look any better. The price bounced from 20 USD/bbl. and tested the 28 USD/bbl. level as a closest resistance before going into a downswing. Most recently, the price was creating a pennant and broke its lower line. That breakout is a negative factor and hints at a further slide south.
A weaker USD along with global turmoil help Gold. Technically, Gold found a local support, slightly bellow the 1600 USD/oz level and will most likely use it to make an attempt at new mid-term highs. Sentiment here is definitely positive.
Let’s also look at the SP500, where the last day brought us a decisive bearish victory. The price failed to continue a bearish attack and failed to break the 23,6% Fibo and the resistance on the 2550 points. We also managed to break the short-term up trendline coming from the latest correction. As long as we stay below the green area, the sentiment will remain negative.