Gold, Oil and EURUSD Weekly Analysis - Week 13

Gold settles the week, above 1300

Gold 2503

Gold prices were seen managing to hold on to the gains made last week as price managed to settle above the 1300 level by Friday’s close. The gains came although price action showed a spinning top pattern that was formed above 1300 level.

The bias remains balanced at the moment with price action likely to extend the gains if it closes above 1320 or could post a decline if it closes below the 1300 level. The daily chart’s Stochastics indicate that price action is likely to show easing momentum.

Watch for gold prices to close below the 1300 level as we anticipate the momentum to see the price action extending lower. A close below 1300 will see gold testing the 1280 handle in the near term. However, if gold closes above 1320 on a weekly basis, this could potentially open up the gains to the upside.

WTI crude oil prices shows bearish signs

WTI 2503

Crude oil prices closed on Friday with bearish declines. This came following Thursday’s doji close near the highs above the 60 level. Price action also coincides with the trend line. We could expect to see some modest bounce taking place in the near term, but the upside gains look limited for the moment.

If oil prices break down below the trend line, then we expect to see prices extending the decline down to 55.00 level where support is most likely to be tested. The current outlook indicates a hidden bearish divergence to the Stochastics, which is forming a higher high against a lower high in price.

Therefore, a breakout from the trend line will indicate a move toward the 55.00 level for support to be established. The overall bias is for oil prices to likely rise to the 65.00 handle.

Euro currency stays weak


The common currency failed to capitalize on the gains made earlier in the week as it fell sharply on Friday. The EURUSD settled close to 1.1282 level extending the declines from Thursday and reversing the gains from the day before.

The retest of the support area near 1.1312 – 1.1282 is expected to see price action once again moving into a consolidation phase as a result. A close below this area could see the euro currency testing the lower support area near 1.1224 – 1.1200 region.

We do not expect the euro currency to extend declines further below this level. However, if the euro does indeed slip below 1.1200 then we could expect to see the bearish trend being resumed once again.

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