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Gold, Oil and EURUSD Weekly Analysis - Week 13

Gold prices rebound into week’s close

XAUUSD 2303

The precious metal closed on Friday with modest gains, rising 1.71% into the close. The rebound comes after nearly two weeks of heavy market turmoil which saw gold prices falling sharply as well. The reversal in the prices comes near the 1481.65 level which we have been watching.

A successful follow through to the upside from this level could signal a potential move to the upside. However, gold will need to battle the immediate resistance level at 1522.78. A break out above this level will signal continuation to the upside.

We expect the gains to rise to the 1585 handle where fresh resistance is likely to stall the gains in the near term. Above this level, we could see gold prices being fully recovered from the sell off. But again, considering the market turmoil, we expect to see continued volatility in the markets.

Crude oil gives back gains as prices remain pressured

WTI 2303

Crude oil prices erased the gains from Thursday as Friday’s price action saw a 15% drop. The commodity continues to hover near the fresh lows chalked earlier this month. The declines in WTI crude oil comes after prices mounted a brief rally.

However, the resistance level at 28.00 saw prices being rejected promptly. This has kept oil prices to give back the gains made from earlier sessions. However, we now see a possible floor forming near the 22.15 handle. As long as prices remain supported above this level we expect to see some consolidation.

In the near term, the sideways range could form between 28.00 and 22.15 region. This will be an indication of a bottom being formed in the commodity. But any gains will need to come on a successful breakout above the 28.00 handle.

EURUSD fails to recover

EURUSD 2303

The euro currency was seen trading bullish at one point in Friday’s session. However, price action gave up those gains rather promptly, pushing prices near the lows. As a result, the EURUSD currency pair has formed a doji pattern.

This could be indicative of a possible rebound in price. But the common currency needs to clear the trend line and the horizontal resistance level at 1.0784. Only a successful close above this level will signal a move further to the upside.

In the near term, it looks like the EURUSD is finally ending the declines. But this will depend on a bullish candlestick session. A successful close above 1.0784 could be on the horizon. In this scenario, the EURUSD will be testing 1.1000 handle once again.

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