USD Weaker. WTI & Brent Crude Volatile on Middle East Tensions. Gold XAUUSD at Support.

In today’s GCI Market Outlook, let’s take a look at Forex Trading on Gold, XAUUSD, EURUSD, the S&P500, the Dow Jones Industrial Average, and Brent Crude and WTI Crude Oil.

As we all know, the US Air Force attacked nuclear facilities in Iran over the weekend.

Price action on Crude Oil shot up on Monday with a gap but fell dramatically after that.

From the technical standpoint, WTI is at a key level of around $65 and the stochastic oscillator is very oversold.

If we look at the same chart of Brent Crude we see price action trying to reverse already.

However, the fundamentals will be more important as any activity involving Israel, Iran, or American involvement will affect the price of crude.

More importantly, if Iran decides to close the Strait of Hormuz, we will certainly see the price of WTI and Brent Crude rising.

After the attacks on the weekend, price action on the US indices is a mirror image of crude oil.

The Dow Jones Industrial Average opened lower with a gap but rallied in negative correlation to the price of oil and the thoughts of lower interest rates later this year.

USD is weaker against all other currencies as we see in this EURUSD chart.

But will price action stop at resistance of $1.16?

Price action on gold has been volatile, of course, based on the Middle East situation.

Price is currently at support so let’s watch for a break below or a bounce to the upside.

That’s all for now.

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