Gold, Oil and EURUSD Weekly Analysis - Week 15

Gold closes the week with a doji

The declines in gold price looks to have stalled with price action culminating into a doji on the weekly chart. The appearance of the doji pattern on the support level of 1288 – 1290 indicates a potential move to the upside.

With price action turning sideways as seen on the daily chart, we expect some more consolidation to take place. But at the same time, gold prices could pop lower with a strong momentum. But for this, price action will need to clear the support level.

While it is difficult to predict what price will do in the near term, a pullback to 1280 level will give more clarity following the anticipated declines. To the upside, watch for price action to run up to the 1305 region where we could expect to see some reversal candlestick patterns on the daily time frame.

Crude oil closes the week with a bullish candlestick

Oil prices are showing a strong momentum with the weekly candlestick closing with a bullish candlestick pattern which is indicating that there is still further room for oil prices to grow. Price action is nearing our level of 65.00 where resistance is most likely to be formed.

We anticipate that in the near term, oil prices could reverse from the 65.00 level of resistance if it is validated. After closing the week at $63, the jump to $65 shouldn’t be that difficult. Watch for how price evolves around this level in the near term.

From the daily chart, we estimate that the resistance zone will be formed around the 65 – 66 region. It is too early to take short positions at this point. Therefore, it is best to remain on the sidelines for now and wait for oil prices to give more cues near the resistance area.

Watch the doji on the euro currency

The euro currency has been trading in a range for the past few months. However, price action has closed with a doji near the tried and tested support area. This could potentially spell a near term reversal if the bullish momentum can pick up.

The consolidation in the EURUSD market remains within the descending wedge pattern. As a result, watch for a breakout to the upside. The first level of interest will be the 1.1395 region. A breakout above this level is required for price action to continue to the upside.

From the daily chart time frame, the EURUSD formed a doji on Tuesday and followed through with a bullish move. But price eased back quickly thereafter. As long as the doji’s low of 1.1183 is not breached, we expect some upside momentum in the euro this week.