WTI Crude Oil in Double Top. Forex Trading USD Continuing Weaker. Indices Stalling on Uncertainty and US NFPs.

In today’s GCI Market Outlook let’s take a look at Forex Trading on the S&P500, NZDUSD, AUDUSD, and WTI Crude Oil.

We see price action on WTI Crude Oil bouncing off resistance just below $64 on the daily chart and the stochastic oscillator turning back down.

If we move out to the 4-hour chart we see the obvious trading range and that price action has formed a double top with the neckline just above $62.50.

We need to see price break below the neckline and perhaps some bearish indication from the stochastic oscillator or other technical indicators.

Having said that, we see the signal line of MACD breaking out of the histogram which is also a bearish sign.

However, we may need to see a stronger USD before any major moves to the downside on oil.

We see continuing USD weakness based on uncertainty over tariffs and the latest spending bill stuck in Congress.

Any positive news should send USD the other way.

Last time we pointed out an opportunity on the bullish run on NZDUSD and AUDUSD.

Price action on both fell, the stochastic oscillator, fell and reversed and price rose again.

Let’s see if we can catch the next one and trade with the trend.

We have an Interest Rate Decision from the ECB today and the US Non-Farm Payrolls tomorrow.

This, combined with the trade and spending uncertainty in Washington would explain the consolidation in the indices.

We see an ascending triangle on the S&P500 on the daily chart.

If we switch to the 4-hour chart we see indecision in price action but an oversold stochastic oscillator so keep an eye on your indicators and an ear to the news.

That’s all for now.

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