May is expected to be as efficient as April. Traders’ proverb “May sell and go away” will be very correct this year again. The market tendency to continue current trends will remain in force not only in May. Particular attention should be paid to three instruments, which are expected to be extremely volatile implying both corrections and the downtrend continuation.
Brent
In the weekly chart, Brent broke the psychologically-crucial of 70.00. In May, the instrument is expected to continue the current uptrend towards the next target at 80.00. Besides, fundamental news relating to Iran-US-China conflict sends oil prices higher. As long as there is uncertainty in this matter, bulls will continue pushing oil prices upwards. After reaching 80.00, the price may take a break for a consolidation or a possible correction towards 70.00. After the correction, the uptrend will continue. From the technical point of view, the instrument is forming the fifth rising wave. 80.00 is the target of the first structure of this wave.

As we can see in the daily chart, after breaking 70.00, the uptrend got even faster. The price is expected to reach the target of the first wave in May as well. After reaching the target, the instrument may start consolidating near the highs. In case this range is broken to the downside, there may be a correction with the target at 70.00. The longer the Iran issue continues, the more time the bullish rally may take place. After the correction, the uptrend will resume.

XAU/USD (Gold)
In the daily chart, Gold broke the psychologically-crucial of 1290.00. As long as the USD is strong fundamentally, Gold will have very few chances to rise. From the technical point of view, one should pay attention to Head & Shoulders reversal pattern. In May, the instrument may continue falling towards the next target at 1250.00. After reaching 1250.00, the price may take a break for a consolidation or a possible correction. After the correction, the downtrend will continue to reach 1230.00.

As we can clearly see in the H4 chart, the instrument broke 1290.00 with a consolidation range. By now, the price has already formed another descending structure towards 1267.00 along with the correction at 1282.00. The target at 1250.00 is expected to be reached in the first half of May. After reaching it, the instrument may form a new consolidation range. If the price breaks the range to the upside, the instrument may be corrected to return to 1290.00; if to the downside – resume trading inside the downtrend with the target at 1230.00. One should also note that if there are corrections on global markets, investors may turn to “safe haven” assets again, including Gold.

EUR/USD
As for a vast number of currency pairs, one should pay particular attention to EUR/USD and not only because it is the most popular currency pair in the industry. In the weekly chart, this pair broke a very important from the technical point of view level at 1.1200. Throughout May, the downtrend is expected to continue towards the next target at 1.1000. After reaching it, the price may take a break for a consolidation or a possible correction and then resume trading inside the downtrend with the target at 1.0850. A good piece of news for the European currency will be any positive statistics from Germany, because right now it is the Euro Area’s soft spot.

As we can see in the daily chart, after breaking 1.1200, the pair may continue the downtrend. From the technical point of view, the price is forming another structure of the third descending wave with the short-term target at 1.1000. After reaching it, the instrument may start a new consolidation range. If later EUR/USD breaks the range to the upside, the pair may be corrected to return to 1.1200; if to the downside (in case there is no positive news) – resume trading inside the downtrend with the target at 1.0850.

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