FXStreet reports that Axel Rudolph, Senior FICC Technical Analyst at Commerzbank, notes that ICE Brent Crude Oil has reached the 71.28/95 resistance area which is expected to put a lid on the uptrend.

“ICE May Brent Crude Oil briefly slid to its current March low at 62.38 before surging higher to its current March high at 71.38, right between the January 2018, September 2019 and January 2020 highs at 71.28/95 which provoked failure.”

“Since the spike high has been followed by a drop below yesterday’s low at 67.80 and has also been accompanied by triple negative divergence on the daily RSI, we are of the opinion that a top is in the process of being formed. A fall through the February 19 and current March lows at 62.38/61.39 would confirm such a top.”

“Above the 62.38/61.39 levels the five-month support line can be spotted at 63.83 and below the 59.46 February 12 low.” 

FXStreet reports that gold (XAU/USD) found some support near the $1675 region and is edging higher on Tuesday. Analysts at Standard Chartered believe that the yellow metal should remain resilient as the U.S. dollar is set to resume its downtrend while real yields are not expected to march forward in the coming months.

“We continue to view gold as a core holding and retain our bullish bias on a 6-12 month horizon, underpinned by our expectation of a weaker USD and range-bound real yields.”

“Moving forward, inflation will likely creep higher as the global economy recovers, but we expect nominal bond yields will be capped by the Fed. This means real yields are unlikely to rise significantly, while the USD should gradually resume its downtrend.”