Gold and crude oil at a two-way road

Yesterday was an eventful day for the markets. On one hand the brent oil index was affected by the IEA reducing the outlook for global crude oil demand due to the continuation of the Covid-19 pandemic. However, according to the OPEC report, the forecast for crude oil demand in 2021 and 2022 has remained unchanged.

Technically, the price has not approved the bottom head and shoulders pattern and does not follow a specific trend in the mid-term. Therefore, the price reaction to the PRZ of the Ichimoku cloud and the mid-term averages in the daily and four-hour timeframes will be decisive.

On the other hand the Gold market, the price is still moving within the mid-term bullish correction wave and is reaching a significant PRZ of the MA34 and the Ichimoku cloud in the four-hour time frame – a reaction to this range will be decisive.

Technically, the Ichimoku cloud has reached its narrowest zone in the four-hour timeframe, which could signify the price tending to cross this range. Meanwhile, after the sharp drop in prices at the beginning of this week, there is a tendency to close the opened window, supporting this upward correction trend. Therefore, in general, the price reaction to the said PRZ should be observed.