The start of the last trading week in May was soft. European election results were largely discounted earlier and the low volatility on Monday contributed the most to the markets being closed in US and UK. FX is pretty quiet today, but there is a few setups that might be interesting.
The first one is Gold, which recently found and confirmed the most important horizontal support – 1270 USD/oz. As long as we stay above this line, the sentiment seems positive and we are still playing the correction scenario, not the reversal one. The real buy signal will be triggered, when the price breaks two black dynamic resistances.
Oil, the second most popular commodity among FX traders, is in a slightly worse situation than Gold. The price is bouncing from a support, however the bearish momentum looks pretty strong. Last week was catastrophic for Crude and it seems that this is not the end of bullish troubles.
NZDCAD is something more exotic, yet very technical. There was a proper sell signal from March – a bearish engulfing pattern with a false breakout. The price dropped creating a legitimate downtrend. Most recently, there is a bullish correction, which is aiming for the long-term horizontal resistance. Chances that it will get there are pretty high, especially as it is a 38,2% Fibonacci at the same time. Sentiment is still negative.