• CL-OIL


  • Cocoa-C


  • View more

Commodities Technical Insights: 04 July 2022



Graphical user interface, chart, application, histogram

Description automatically generated

USOUSD has been trying to move higher in the last week and break our resistance level at 109.86 but closed lower at 105.84. This week, we believe USOUSD will move in a range while waiting for clarity on the supply disruption. 

We can see that the stochastic indicator is nearing our oversold level in the weekly timeframe. At the same time, the moving averages show a stronger upward movement, with all 20, 50, and 200-day moving averages still below the price. Our weekly support levels will be 102.90 and 94.62, with a possible target of our resistance levels at 109.86 and 113.81. 

In the H4 timeframe, our stochastic indicator is in the overbought area, trying to move in the lower direction, while the moving averages all move above the price. This indicates that the short-term movement in USOUSD will be more downward as it tries to reach the support levels at 104.87 and 103.30, with the resistance levels at 106.81 and 107.72.

Weekly Resistance: 109.86, 113.81

Weekly Support: 102.90, 94.62

H4 Resistance: 106.81, 107.72

H4 Support: 104.87, 103.30

USD Index

Graphical user interface, chart, histogram

Description automatically generated

The USD index (USDX) is back on stronger terms in the last week and is trying to break our resistance levels and close our weekly timeframe at 105.56 – 104.69. 

For this week, USD Index will keep trying to break our resistance levels if we see the weekly stochastic indicator still showing its strength. Our weekly resistance levels are 104.69 and 105.56, with the support levels at 101.02 and 101.63. 

Meanwhile, with a weekly timeframe showing a stronger move, we can see a possibility of a correction on the H4 timeframe. We believe that in the short term, the USD Index will go slightly lower and target our H4 support levels at 104.63 and 104.38 before eventually strengthening again and hitting the H4 resistance levels at 105.18 and 105.31. 

Even though all of the 20, 50, and 200 moving averages in the weekly and H4 timeframes are still on the upside, this technical aspect might change after the release of this week’s US labour data.

Weekly Resistance: 104.69, 105.56

Weekly Support: 101.63, 101.02

H4 Resistance: 105.18, 105.31

H4 Support: 104.63, 104.38


Graphical user interface, chart, application

Description automatically generated

Last week, Gold weakened after a positive jump on the opening on Monday. This was the third week in a row that Gold had weakened. Even though US labour data has not been released yet, we can see a possibility for Gold to go lower in the next few weeks. 

In the weekly timeframe, we can see that the stochastic indicators show a potential reversal for Gold to move lower, yet the moving averages show that the price is below 20 and 50 but higher than 200. 

Meanwhile, in the H4 timeframe, we can see the stochastic indicators showing a strong higher move, while the price is still below the 20, 50, and 200 moving averages. 

The price may also rise slightly in the H4 timeframe to try to reach our H4 resistance levels at $1821 and $1828 before eventually going lower to try to break the support level at $1786/87 and $1757.

Weekly Resistance: $1875, $1903

Weekly Support: $1787, $1757

H4 Resistance: $1821, $1828

H4 Support: $1807, $1786