Commodities in Spotlight: Why Gold and Oil are Dominating the Charts.

Commodities in Spotlight: Why Gold and Oil are Dominating the Charts.
Welcome traders to the start of a promising new week. Last week was nothing short of riveting, with a flurry of trading signals, predominantly surfacing towards the week's end. Let's dive right into the action, shall we?
While recent Mondays had typically been more on the serene side, today bucks the trend by presenting a rather busy slate. Foremost on the agenda is the Empire State Manufacturing Index from the U.S., with projections pinning it at a notable -6.4. We also look forward with bated breath to insights from FOMC member Harker later in the day. And as the day reaches its twilight, for those of us in the European time zone, inflation data from New Zealand will be the nightcap, expected to clock in at a steady 1.9%.

Flipping our attention to the charts, last week drew its curtains with the U.S. dollar flexing its muscles. However, as the new week dawns, there's a perceptible shift in the air, with the American dollar displaying a tad bit of frailty. Case in point, while the EURUSD trading pair remains firmly ensconced within its downward channel, the USDCHF is hovering perilously close to its midterm nadirs.
On the equity front, indices signed off the past week with pronounced bearish undertones. However, with the new week's first light, futures have ushered in a modest uptick. The real litmus test, of course, awaits as European traders begin their dance on the trading floor.

Shifting gears to commodities, Friday was nothing short of a spectacle. Gold took the limelight, surmounting the critical $1,900 mark and effectively shattering the confinements of its descending channel – a resounding green flag for buyers. Silver, too, wasn't far behind, ascending past the $22.24 resistance level. The black gold, oil, was no slouch either. WTI rallied past the $84 barrier and is now setting its sights on the $94 target. Concurrently, Brent oil's triumphant breach of the $88 resistance is a bullish testament, signaling an overall upbeat sentiment in the oil sector.

Lastly, casting our gaze towards Europe, Poland's recent electoral outcomes could very well herald a change in the winds. Preliminary indicators suggest a potential regime change, with the pro-European opposition at the helm. This political seismic shift has sent ripples through the currency markets, as evidenced by the robust gains of the Polish złoty. The EURPLN pairing, in particular, is on a downward trajectory, plummeting from Friday's 4.53 to today's 4.45, accentuated by a stark bearish gap on the charts.

In summary, as we venture deeper into the week, traders would do well to keep their fingers on the pulse, as the markets promise more intrigue and potential opportunities. Stay sharp and trade wisely!
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