Market Analysis of Gold on Friday 16 July 2021
On Thursday, Gold continued to fluctuate. Dollar rebounded above 92.60, and gold dropped to the lowest point at around 1820. Yesterday, the number of initial claims for unemployment benefits in the United States was 360,000, which dropped to the lowest level during the COVID-19 pandemic. Fed Chairman Powell stated in his semi-annual monetary policy report that the FOMC will discuss the purchase of US Treasury bonds and mortgage-backed securities (MBS) in the next few weeks. With the rampant delta mutant strain of the new coronavirus, market uncertainties still exist. From a technical point of view, gold showed an effective rebound and formed an upwards channel. H4 graph showed that gold's short-term trend is bullish, and all indicators show bullish signs. However, RSI shows a turnback sign, and H1 graph shows signs of correction. Overall prioritise Buy on Low on fluctuation zone. Consider the support zone and resistance zone, the deciding point whether to buy or sell is near 1820.
Resistance：1834-1840-1850
Support：1818-1810-1800
Market Analysis of Crude Oil on Friday 16 July 2021
On Friday Asia session, crude oil fluctuates around 71.30, the price fell by more than 1% on Thursday. It is expected that more crude oil will enter the market. OPEC insists on its forecast of a strong recovery in world oil demand for the rest of 2021. It is predicted that, driven by growth in the United States, China, and India, oil demand in 2022 will grow at a rate close to that before the pandemic. The prospect of increased production and the worries brought about by the mutation of delta virus gave pressure on the crude oil market.
From technical point of view, daily candle kept forming bearish candles, MA forms Death Cross and a certain peaking signal appears. The downward channel on H4 graph has completed, the indicator shows a strong bearish signal. Overall, prioritise Sell on the fluctuation zone. The chart below is showing the key point and the estimated trend, the deciding point whether to buy or sell is near 70.00.
Resistance：71.90-72.50-73.30
Support：70.50-70.00-68.50
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