4 Reasons Oil Prices Are Falling | WTI & Brent Crash | AI Spending Weighs on NASDAQ | Forex Market Outlook

On Friday, we saw a jump in the price of crude, but the Monday open saw a huge fall with this $6 price gap.

Let’s take a look at why that happened.

In today’s GCI Market Outlook, let’s take a look at Forex trading on AUDCAD, Gold, XAUUSD, AUDUSD, the S&P500, the NASDAQ, WTI, and Brent Crude Oil.

Just a reminder that these videos are intended as educational, we are only observing current market conditions, and these are not to be considered as trading advice.

Firstly, we are seeing a cessation in military activity and the market seems to be confident that this will continue.

Even though the Bab al-Mandab Strait in the Red Sea is still under threat, passage through the Strait of Hormuz has resumed to productive levels, driving prices lower.

The downward momentum is also a result of speculators unwinding their positions, thereby accelerating the fall.

And, finally, global demand fundamentals do not look great with forecasts seeming pessimistic.

But, as I said in the last video, the US administration would do itself a huge favour by getting the price of gas down before the November midterms.

Again, anything can happen between Iran and the US so be careful.

Check out our last video with the link in the description.

https://youtu.be/jugidLJjMlM?si=geXXL_ePYwMJgYfp

Speaking of weak forecasts, let’s take a look at the US indices.

We have earnings reports from some very large companies today, but the real driver of the indices falling is pessimism over AI spending vs revenue.

Tomorrow and Wednesday, we have some major tech companies, like Apple, Meta, Amazon, and Microsoft, reporting, so keep an eye on the US indices.

Technically, on the NASDAQ, we see price action stalling at support and an oversold stochastic oscillator, but keep an eye on the news.

Also affecting the indices, we have an interest rate decision from the US Fed tomorrow and, even though the forecast is neutral, there are rumours about an interest rate hike.

This will be bad for indices but good for USD.

Right now, we are seeing consistent USD strength.

Check all your USD major pairs like AUDUSD, where we might get a News Catalyst Trade opportunity tomorrow.

Gold opened with a gap at the Monday opened but our technicals gave us a big hint on the reversal, and the gap was filled with the stronger USD.

However, are we are looking at 2 technical options with an oversold stochastic oscillator and a lower trendline?

Or are we looking at a double top forming with the neckline at this key level?

We have been following this ranging market on AUDCAD in previous videos, and the upper trendline and support are still in play.

That’s all for now.

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