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Gold, Oil and EURUSD Weekly Analysis - Week 33

Gold holds at the top end of the rally

Gold 1208

Gold prices closed the week near the $1500 an ounce psychological level. Price action remained firm near the highs as the bullish rally showed no signs of giving up. However, considering the doji and the spinning top pattern formed on Thursday and Friday, we could see the start of a topping out pattern.

The price level at 1440 which served as resistance previously is now likely to act as support. Thus, we could expect to see a correction in the precious metal over the next week or two. However, there is scope for further consolidation to take place at the current highs.

We wait for a minor support level to form a few points down from the 1500 level. A break down of this support level will potentially give way for further declines and confirm the correction lower.

Crude oil looks to bounce back

WTI 1208

WTI Crude oil prices posted a reversal towards the close of last week. After prices fell to the target level of 52.00, we saw prices being rejected strongly. This led to a recovery in the commodity.

The current upside, if it continues will see oil prices rising back to the breached support area of 56.00. Establishing resistance at this level will confirm a retest back to the breakout level. However, following this, oil prices could remain range bound within the 52.00 and 56.00 levels.

Rumors of Saudi Arabia planning to stem the declines in the oil prices could see some upside bias building up. However, for this, we will need oil prices to break out above the 56.00 handle to confirm the view.

EURUSD shows no signs of giving up range trading

EURUSD 1208

The common currency continued to trade flat in the long term. Price action is firmly anchored near the resistance area of 1.1224 – 1.1200 region. While there were attempts to breakout past this level, it lead to price action turning flat.

This led to the currency pair forming multiple doji patterns near the resistance area. The price action indicates that the EURUSD currency pair could be moving back lower. The support area of 1.1129 – 1.1110 could possibly see the support being tested.

A breakout off these levels will see the next leg in the direction of the currency pair. We expect that the bias will be to the upside. The next main target is seen at the 1.1395 level where resistance is waiting for a retest.

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