Main trading ideas on financial markets for 08.04.2019

Spot gold closed the trading week near the 1295 area. The candles keep moving within the ascending channel. The triangle pattern is currently being formed. Moving averages indicate the bullish trend. We expect the price to make an attempt for growth and test the resistance in the 1310 range. After that, the decline with a potential target below the 1210 mark will resume.

Another scenario may occur if the price manages to breach the 1340 area. The breakout of this resistance level will be a signal for further GOLD growth. It will be possible if the CPI data, scheduled to be published on Wednesday, 10 April, come in more negative than the last time. Generally speaking, a high reading is seen as positive for the USD, while a low reading is seen as Bearish.

Brexit talks and uncertainty continue with Friday’s news highlighted by the potential for a “flextension” to Brexit negotiations. Prime Minister Theresa May requested an extension to June 30, with the UK to nominate candidates for European elections if no deal has been reached by late May. The next discussion will take place during the EU summit on Wednesday, where policymakers will decide whether to accept May’s proposal.

The pair remains within a near-term bearish channel, indicating the medium-term bearish dominance. The breakout of 1.2975 support would take the price to a fresh six-week low and open the way for further decline towards 1.2900 or the February lows.

So, the next important news – the EIA Crude Oil stockpiles report- is scheduled to come in on Wednesday. It’s worth noting, that according to the Commitment of Traders Report Oil bulls have pushed their net-long exposure to their highest level since October 2018. Many experts have been waiting for oil stocks to be reduced. It means that WTI prices are very likely to demonstrate growth up to 65.

From the technical point of view, it continues to move within a bullish correction. Moving averages indicate a bearish trend in general. In addition to this, the RSI indicator shows that the black gold is almost in the overbought zone that plays into the hands of sellers.

Our targets for:
GOLD – buy up to $1310
GBPUSD – sell down to 1.2975
WTI OIL – buy up to $65