In today’s live trading session, we discussed why US Oil had dropped to a 21-year low and where it may head to next. We then took look at potential trade setups for this week.
Early this Monday morning US Oil had dipped below $10 per barrel. This is a new historic low for the commodity. In addition to the May futures contract expiring Tuesday (tomorrow), the lack of demand due to the Coronavirus has been held responsible for the rapid depreciation. There is no end in sight for the sell-off, with some experts saying negative prices can be a possibility.
For the rest of today’s session, we looked for setups to take today and later in the week. We found a potential short trade for GBPAUD. This pair has closed bearish on the daily timeframe below recent support. We are just waiting for confirmation on the 4hr timeframe to enter. Another possible setup is a long for XAUUSD (Gold). If Gold can muster up enough buyers to close bullish above 1700, we can take a long to 1715 and maybe, 1730.
Unlike last week, this trading week is five days long. There is no rush to enter trades, especially with the amount of movement that has occurred over the weekend. We should expect some clarity today this evening when President Trump and PM Trudeau address their respective nations. This week also consists of a handful of major fundamental releases. All in all, it will be an exciting week to trade. As always, be safe and trade responsibly.
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