Oil Reached 2018 Highs, German Elections Affect Euro

Latest news

Commodities (iron ore, oil) and commodity-linked currencies (AUD, CAD) surged. West Texas Intermediate has reached $75 a barrel, while Brent rose to the highest mark since October 2018.
Oil has grown by over 80% since April 2020 as the global demand recovers after the Covid-19 crisis. ING says oil ‘continues to be supported by broader concerns over tightness in energy markets’. Citigroup remains “outright bullish” on crude oil as well as gas.
The euro is falling at the start of the week amid the German election. There is no clear winner so far. Olaf Scholz of the Social Democrats stepped ahead of Chancellor Angela Merkel’s conservatives.
In the US, House Speaker Nancy Pelosi is going to pass a $550 billion infrastructure bill this week. It should be good for the US stock market. S&P 500 has been rallying up for the fourth day in a row.

Tech outlook

EUR/USD seems weak. The pair is likely to reach the lows of August 19 at 1.1670, if it breaks through the psychological mark of 1.1700. On the flip side, if it manages to jump above the recent high of 1.1740, it may rally to the 50-day moving average of 1.1775.

Gold has reversed up from the strong support level of $1750. It lies at both the lower line of the triangle pattern and the 100-day moving average. It may reach the resistance level of $1780 soon if the uptrend continues. The jump above it will push the pair up to the psychological mark of $1800.

USD/JPY has jumped above the resistance level of 110.50 and pulled back. Indeed, the rally was quite fast and the pair needs a break. It can be just a short sell-off before further growth to 111.00. Support levels are 110.50 and 110.00.

TRADE NOW

germany

eur

usd

gold

oil

Kseniia Medik

View all articles author

Similar

22.10.2021 18:43 What will move the market on October 25-29?

Last week was full of surprises! Stock indices have shown significant growth…

21.10.2021 11:28 Will USD Stop Falling Today? Market Wrap

The US dollar is heading to close the seventh day in the red as it remains under selling pressure. The US data at 15:30 GMT+3 (jobless claims and Philly Fed Manufacturing Index) may support the greenback if it's strong.