Forex Trading the Dow Jones in Descending Triangle. WTI & Brent Rising on Strait of Hormuz Chaos.

In today’s GCI Market Outlook, let’s take a look at Forex Trading on WTI, Brent Crude Oil, USDJPY, the Dow Jones Industrial Average, EURUSD, Silver, XAGUSD, and Gold, XAUUSD.

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.

As usual, with geopolitical events and wars, the market gets used to it, and the shine comes off gold and silver.

It seems that inflation fears are driving investors, based on the chaos and uncertainty in Washington and Iran, back to USD.

So, we see both gold and silver falling in unison.

Technically, we are seeing bearish confluence with both the stochastic oscillator and MACD.

This leads us to look at USD pairs, and we can see USD strength right about the time when gold and silver turned down.

This would explain some of the fall in precious metals.

So, what about that risk-on mood with equities?

The 1-hour chart on the Dow Jones Industrial Average tells the story with this weekend gap (the same one we saw on gold, silver and USD), followed by a selloff all week.

Technically, we see a descending triangle with support at just over 49,100 and a bearish stochastic oscillator.

If we see any bad news about the economy, or the idea that the Fed may not lower interest rates, or in fact increase interest rates due to inflation, we may see price action break lower to the next key level.

Speaking of Interest rates, we will see the next BoJ rate decision and reports on Tuesday.

Analysts expect them to hold rates, but we may get a hint or 2 about the June session, which will likely affect JPY.

Anything positive could see a short opportunity in this trading range on USDJPY.

Speaking of weekend price action gaps, we see the same in Crude oil, but with prices climbing again to the $100 region on WTI.

This is based on the confusion, attacks and the breakdown of peace talks.

Of course, any mention of peace talks or positive traffic flow in the Strait of Hormuz will have prices falling again.

That’s all for now.

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