Commodity Market Shifts: Gold's Bearish Sentiment vs. Oil's Bullish Bounce
08 May 2023
From a macro calendar perspective, this coming week will be one of the least busy on record. I would say it's even less busy than that magical week between Christmas and New Year's Eve when people generally have trouble differentiating Wednesday from Thursday and so on.
Regarding indices, we definitely start the week on the front foot, thanks to the amazing session on Friday. Although the previous week did not look great, the last day changed the sentiment dramatically. Sellers were so close to a major victory, but Friday’s reversal changed everything. The current sentiment on stocks is positive, and we currently have a bigger chance to see new highs.
On the Forex market, we start with a further weakening of the American Dollar. On the EURUSD, the price is currently aiming for key horizontal resistance around 1.107, and a breakout of that area would give us a signal to buy. On the GBPUSD, the price is currently making new long-term highs as we speak, and on the USDCAD, we are currently approaching the key support around the lows from April.
The narrative on commodities has changed dramatically recently. The end of the last week brought us a proper bounce on Gold, which introduced a mid-term bearish sentiment. We are bouncing off the long-term lows, and currently, the small bearish wave is slightly more probable. On the contrary, Oil made a key bullish bounce close to the long-term lows, and currently, the upswing seems like a base scenario there