Gold, Oil and EURUSD Weekly Analysis - Week 34
Gold holds steady above 1900
The precious metal closed on Friday on a bearish note, but given the strong gains from Thursday last week, price action is well supported above the 1900 level for the moment. On a weekly basis however, the precious metal closed in the red, marking the first weekly decline in over nine weeks.
For the moment, it is still to early to write off gold. Given the overall momentum, we might just see another surge. For the moment, the 1950 level is acting as a minor resistance level. Price action will need to close above this level in order to confirm further upside.
To the downside, gold prices are steady near the 1900 level with support being established firmly. The 50-day moving average is also inching closer to the price action indicating that the precious metal is well supported to the downside. Therefore, the 1900 - 1850 levels will likely hold up for the near term.
WTI crude oil holds strong near 42
Oil prices continue to remain in limbo with prices constantly consolidating near the 42.00 level. With the 200-day moving average also turning flat near this level, it indicates that there is practically no trend in the oil markets right now.
But this might change as we head into the OPEC meeting this week. OPEC member nations including Russia are due to meet this week. While there is no talk of further production cuts, investors will likely hold back ahead of the meeting. Depending on the outcome, we might get to see some fundamentals driving prices in the near term.
The 50-day moving average is also inching closer and as a result with both the moving averages turning flat, the consolidation in the oil markets might hold up for longer. In the unlikely event that crude oil fails the 40.00 level we might then get to see a breakdown lower.
EURUSD resuming its bullish momentum
The euro currency managed to recover from the two-day loss earlier in the week. Price action is steadily rising for three consecutive days so far. At the current pace, we might expect to see the EURUSD back near the 1.1900 level which marks a two-year high for the currency pair.
The gains come on the back of the US dollar weakening once again. Despite forming a bottom, the rebound in the dollar is failing to hold up. A continued weakness in the USD will likely see the euro rising higher as a result.
To the upside, if the common currency clears the 1.1900 handle, then we might get to see price targeting the 1.2000 level next. This would be another first and will likely push the currency pair to a three year high, if not higher.
