01/06/2026
📈 Weekly Technical Analysis 01-06-2026
1️⃣ --Deep V Rebound, Weekly Candle Closes Higher
Trend Summary
Spot gold opened with a gap higher to 4,572 last Tuesday before falling sharply. Midweek, it briefly dropped to a low of 4,363, then buyers staged a strong rebound. By Friday, gold recovered to around 4,591 and finally closed above 4,560. The weekly pattern showed a decline followed by a rebound, forming a bullish candle with a long lower shadow, suggesting strong buying interest at lower levels. As U.S. markets were closed on Monday for Memorial Day, the trading week was shortened to four days, but volatility expanded significantly.
Technical Analysis
Gold found strong support near 4,363, which marks the upper edge of a previous high-volume trading area. Short-term moving averages formed a bearish crossover early in the week before flattening again. MACD green bars narrowed significantly, while the DIFF line showed signs of flattening and turning upward. RSI rebounded from oversold territory to around 45, a neutral-to-weak area, indicating that selling pressure has eased but bulls have not yet taken control. The 4,570–4,600 range forms short-term resistance. A firm break above this area could extend the rebound.
Weekly Trading Strategy
💡Strategy 1: Buy at 4,530, stop loss at 4,490, target 4,610. Based on the rebound channel formed from last week’s low of 4,363, consider buying after a pullback confirms support at 4,530. Place the stop loss below 4,490 and target the 4,610 resistance area. Holding period: 3–5 trading days.
💡Strategy 2: Sell at 4,615, stop loss at 4,655, target 4,535. If gold rebounds to around 4,615 and faces resistance, consider a light short position. This strategy applies to a potential second pullback after the rebound stalls. Holding period: 3–5 trading days.
__________________________
2️⃣ -- Narrow Consolidation, Weaker Dollar Supports the Euro
Trend Summary
EUR/USD remained in a narrow consolidation pattern last week, fluctuating within the 1.1587–1.1686 range and closing nearly unchanged around 1.1656. The U.S. Dollar Index fell from 99.2 to 98.9, providing mild support to the euro. A slight rebound in German inflation lifted expectations for tighter ECB policy, while the upward revision to U.S. GDP limited the euro’s upside. Trading volume was moderate, with markets awaiting this week’s eurozone CPI and U.S. non-farm payrolls for further guidance.
Technical Analysis
EUR/USD is consolidating above the 1.16 level. Short-term moving averages remain in a bullish alignment but have flattened, showing no clear trend direction. MACD is running in a bullish crossover near the zero line, but the histogram remains weak, suggesting insufficient upside momentum. RSI is fluctuating in the 50–55 neutral-to-slightly-bullish range, indicating balanced market forces. Resistance is seen at the 1.1700 psychological level and the previous high of 1.1720, while support lies in the 1.1580–1.1600 range. Before a breakout, range trading remains the preferred approach.
Weekly Trading Strategy
💡Strategy 1: Buy at 1.1620, stop loss at 1.1580, target 1.1700. Consider buying after EUR/USD pulls back and stabilizes near the 1.1620 support area. With the dollar weakening, the euro may remain mildly supported. Holding period: 3–5 trading days.
💡Strategy 2: Sell at 1.1700, stop loss at 1.1740, target 1.1620. If the euro rebounds to the 1.1700 level and faces resistance, consider a light short position. This strategy applies to a range-bound pullback scenario. Holding period: 3–5 trading days.
__________________________
3️⃣ -- Continued Decline, Bears Remain in Control
Trend Summary
WTI crude oil extended its decline last week. After Monday’s holiday closure, prices opened on Tuesday and quickly lost the 94 level before accelerating lower. On Wednesday, WTI broke below the key 90 level and fell to a low of 87.11. Although it briefly rebounded to 92.52 on Thursday, prices came under pressure again on Friday and slipped back near 87.36. The weekly decline was significant, marking the fourth consecutive bearish weekly candle, with a cumulative drop of more than 6 dollars. Technically, the market remains clearly bearish.
Technical Analysis
WTI’s short-term moving averages have formed a bearish alignment, with the 5-day and 10-day moving averages crossing lower and diverging downward. MACD green bars continue to expand, while the DIFF line has accelerated below the zero line, suggesting that downside momentum is still being released. RSI has fallen to around 35, a weak zone close to oversold territory, but not yet at an extreme level, indicating that bears still have room to push lower. Key support is at the 85 level, while resistance is in the 92–93 range.
Weekly Trading Strategy
💡Strategy 1: Sell at 89.50, stop loss at 91.50, target 85.50. Consider selling if oil rebounds near 89.50 and faces renewed pressure. The bearish trend remains clear, and each rebound may offer an opportunity to add short positions. Holding period: 5–7 trading days.
💡Strategy 2: Buy at 85.00, stop loss at 83.00, target 89.00. If oil falls back to the 85 psychological level and finds support, consider a light long position to capture a technical rebound. Holding period: 3–5 trading days.
__________________________
The above analyst's view is for reference only.
All trading involves risk. You should be aware of all the risks involved.
More about Hantec Financial: https://bit.ly/49j4Ekn
