Today let’s start our analysis with an update from Poland; The number one spot on the stock exchange is now occupied by a gaming company called CD Project. You probably recognize some of the games they’ve released like ‘The Witcher’ and ‘Cyberpunk2077’. It’s interesting to see that in these times, usual conglomerates such as Orlen, an oil & gas company or KGHM, one of the biggest copper and silver producers in the world are no longer helming the stock exchange.
Back to our usual assets, oil surged yesterday after U.S. president Donald Trump commented that an agreement between Saudi Arabia and Russia may happen. This is in line with the technical situation; as we mentioned yesterday, the price was above the 21.1 USD/bbl. level, so there’s a good chance for a short-term upswing. What will happen now is based on speculation, but keep in mind, traders just bought the rumor, so we can base our next moves on what we think they will do with the facts.
Next, we’re moving onto a rather unusual pair for our analysis, the AUDNZD. The pair has shown an interesting setup on the weekly chart, where the price is currently creating a shooting star. The place of this candle is not random; after an earlier test, the price created this candle under two important resistances – the dynamic and the horizontal one. Based on all the above, the pair is looking at a long-term negative sentiment.
Lastly let’s take a look at the Dollar Index; it has shown us that appetite for the USD is back. The price used the inverse head and shoulders patter to come back above the 38,2% Fibonacci retracement level. Buyers are not stopping and it seems that they are aiming to hit the 23,6% Fibonacci level. Based on the current momentum, they should hit it soon.
This article was originally posted on FX Empire
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