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Top 3 charts of the week: UK100, OIL, BITCOIN

- FTSE 100 (UK100) rallied over 11% since December’s low
- OIL adds to previous gains after breaking above the neckline

- BITCOIN with a scope for longer recovery

Rally on Wall Street is still going and so far there is no end on the horizon. This may be a good moment to take a look at other indices benefiting from the ongoing recovery. One such example is the UK FTSE 100 (UK100). The British index looks unimpressed with all the mess around Brexit for now. Of course no-deal withdrawal would hurt the UK companies but weaker GBP seems to offset this uncertainty and in turn we are observing a stunning rally. The rebound of UK100 started in late-December 2018 took a form of the ABC correction with C wave corresponding to 113% of the wave A (Fibo retracement). Moreover, the index visited the area around mid-November highs. However, given the scale of the latest upward impulse one may expect bears to become more active in this region. A notch above one can also find the 200-session moving average that may serve as the next resistance level in line.

Source: xStation5

Another market that is thriving thanks to improving moods on the trade front is, of course, oil. From the fundamental point of view, crude is also poised to gain on supply disruption in Venezuela and quicker production cuts in Saudi Arabia. In turn, Brent (OIL) price finally broke above the neck line of the inverse head and shoulders pattern. In case this price scheme was to be played out in the textbook manner one could expect price to rally as high a to $72 handle. However, one cannot rule out a pullback towards the recently broke resistance in the days to come. Moreover, prior to reaching the $72 handle buyers need to overcome 200-session moving average that currently runs around $70 handle.

Source: xStation5

Last but not the least, let's take a look at the instrument the world seems to have forgotten about - Bitcoin. Price of the biggest cryptocurrency has spiked twice recently, what given recent lacklustre liquidity on the market creates a scope for a longer trend. Looking at the chart one can see that the situation looks more favourable for bulls. Price broke above the upper limit of the triangle pattern yesterday and now the way towards the 50% Fibo level of the latest downward impulse at $4900 handle seems open. However, earlier buyers will need to smash through the $4000 handle that is being marked by the local highs from mid-2018. Psychological aspect may play a vital role here as it was the case for the major part of the previous year, when Bitcoin became more volatile near “round number” levels.

Source: xStation5

German ZEW index deteriorated further in August
Chart of the day- Copper (16.08.2022)
Economic calendar: German ZEW index, Walmart earnings
Morning wrap (16.08.2022)
BREAKING: Oil plunges over 4.0%