Gold(XAUUSD) and WTI Crude Oil Forecast (6 SEPTEMBER 2022)

Gold Forecast: Markets Remain Quiet During Labor Day

I am still looking at signs of exhaustion as selling opportunities, especially if we continue to see a lot of strength in the greenback, or if we get interest rates rising in America.

Gold markets did very little during the trading session on Labor Day as most liquidity in the United States was simply not there. Ultimately, this is a market that is trying to figure out whether it has just formed a double bottom, or if it is going to eventually break down. It’s worth noting that the $1680 level underneath has held as of now, but if we were to break down below that level is likely that we go much lower.

If we turn around and break above the $1725 level, we might have a little bit more of a rally, but the 50 Day EMA sits at the $1760 level and is falling. Because of this, I think the 50 Day EMA should be a bit of dynamic resistance, and I would be willing to short this market if we get signs of exhaustion in that general vicinity. If we break above it, then it’s possible that we could go looking to the $1800 level, as it was a significant resistance barrier previously, which was preceded by significant support. The 200 Day EMA sits just above there as well and is dropping.

Looking for Selling Opportunities

• It’s not until we break above the 200 Day EMA that we are likely to see a major trend change.
• With that being the case, I am still looking at signs of exhaustion as selling opportunities, especially if we continue to see a lot of strength in the greenback, or if we get interest rates rising in America.
• Both of those work against the value of gold, as it’s much cheaper to earn a real yield on a bond than it is to pay for the storage of a bunch of metal.

Either way, we could get a short-term bounce just since we are a little bit oversold. But it’s clear that when you look at the longer-term charge just how important this support level underneath is. So, if we were to break down below there, I would think the gold markets will see a big flush, perhaps down to the $1500 level rather quickly. On the other hand, if we do turn things around, then we may eventually go looking to the $2000 level which is the top of the larger consolidation area that we have been in for the last couple of years.

WTI Crude Oil Forecast: Close to Forming a “Death Cross”

The market is likely to see a lot of negative pressure due to so many different headwinds around the world.

• The West Texas Intermediate Crude Oil market has rallied a bit during the trading session on Monday.
• You should keep in mind that it was Labor Day in the United States, meaning that the market is going to continue to see a lack of liquidity through the session.
• The market is likely to see a lot of negative pressure due to so many different headwinds around the world.

This is not to say that we are going to see a massive collapse, but there are a lot of things working against the value of oil. This is even though OPEC has decided to cut production, the reality is that the market must worry about the economy slowing down, as the market has been trying to price in the fact that monetary policy tightening and the whiplash effect of the pandemic to the supply chain has caused mass chaos.

Looking for Signs of Exhaustion

The market is getting ready to see the so-called “death cross”, which is when the 50 Day EMA drops below the 200 Day EMA, kicking off a very negative longer-term signal. It quite often is a bit late, but longer-term traders may pay close attention to it. In this scenario, I suspect that we have plenty of sellers on short-term balances, especially since we see any sign of exhaustion.

Keep in mind that the US dollar strengthening could also be a bit of a problem for this market, but right now I think we are more likely than not to continue to see a “fade the rally” type of situation, thereby looking at the $95 level as a potential resistance barrier, especially now that both moving averages are sitting in that general vicinity. As soon as we rally, I will be looking for signs of exhaustion. However, if we break down below the $85 level, that is just as good of a reason to start selling, and I will do so at the first opportunity. In that scenario, I would anticipate that crude oil falls to the $80 level rather quickly. It is not until we can break above both moving averages that I would consider buying this market, and Tuesday should be a crucial day because we will finally have full trading again and can read what the market thinks about the news over the weekend.

For more forex gold Indices analysis, Signals, and Account management services text me on my telegram: Claramellor

Best Forex Signal telegram

Forex Account Management Services

#Singapore #Dubai #Brasil  #UAE #USA #Amsterdam #Brussels #Dublin #Lisbon #London #Paris #fx #fxinvestment #fxanalysis #fxtrader #scalping #xauusdgold #xauusdsignal