XAUUSD FORMS GOLDEN CROSS AS SAFE HAVENS RISE

The price of crude oil jumped by as much as 18% on Monday morning as rumours that western countries will add sanctions on Russian oil soon. Several analysts have argued that sanctioning the industry will be the best strategy to punish Vladimir Putin. They have suggested limiting the damage by removing sanctions on Iranian and Venezuelan oil. In a statement during the weekend, Anthony Blinken said that the US were already deliberating these measures with its European allies. In the past, Biden has resisted calls to restrict oil and gas because doing so will push oil and gas prices higher.

European equities approached a bear market as concerns about their exposure to the Russian market continued. The German DAX dropped by 3.47% while CAC 40 crashed by over 3.3%. The Stoxx 50 index declined by 2.80%. Elsewhere, in the United States, futures tied to the Dow Jones, S&P 500, and Nasdaq 100 declined by almost 2%. This performance is because of Putin’s decision to continue his assault on Ukraine, where his armed forces are targeting civilians. Also, they are falling because of the rising cost of doing business.

The US dollar jumped to the highest point in months while gold crossed the key resistance level at $2,000 as demand for safe havens accelerated. On the other hand, cryptocurrencies like Bitcoin and Ethereum retreated sharply on Monday. There is a likelihood that the US dollar and gold will keep rising as long as the crisis continues. The greenback will rise as investors move to safe havens while the Fed embraces a more hawkish tone in its battle against inflation.

EURUSD

The EURUSD pair crashed to the lowest level since 2020 as investors continued to worry about the European economy. The pair is trading at 1.0830, which is significantly lower than the year-to-date high of 1.1495. On the daily chart, it has moved below the 25-day and 50-day moving averages and even formed a death cross. It is below the Ichimoku cloud and the dots of the parabolic SAR indicators. Therefore, the pair will likely continue falling during the American session.

USDCHF

The USDCHF pair climbed to the highest level since February 28th. On the 4H chart, the pair moved to the upper side of the Bollinger Bands. It has also moved above the 25-day and 50-day moving averages while the MACD moved above the neutral level. The Relative Strength Index has also moved upwards. The pair will likely keep rising as bulls target the next resistance at 0.9285.

XAUUSD

The XAUUSD pair continued its bullish trend as bulls managed to push it above the 2,000 resistance level. Along its climb, the pair has moved above the key resistance at 1,916, which was the highest point on June 4. The pair has also formed a golden cross, where the 50-day and 200-day moving averages have crossed each other. Therefore, the pair will likely keep rising in the near term.