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Gold, Oil and EURUSD Weekly Analysis - Week 39

Gold advances with weekly gains

Gold 2309

The precious metal managed to rebound higher and closed on a bullish note. This marks the first bullish close after three consecutive weeks of declines. However, question remains on whether this upside bounce will help recover the price of the precious metal.

The rebound in gold comes following a decline to the 1497 region. Friday’s price action saw a strong bullish close. The upside resistance is seen at 1522.80. A close above this resistance level could see further near term gains in store. However, unless gold closes above the previous highs, we expect price action to remain subdued.

As a result, there is a strong chance that gold will turn flat above the 1522.80 resistance level. Watch for a lower high to be formed near the current levels. This will indicate the start of a correction lower.

Crude oil turns flat after erasing gains

WTI 2309

WTI Crude oil prices have been trading subdued for the past three daily sessions. This came right after oil prices retreated and erased the gains made from earlier in the week. But price action remains a bit volatile in the near term.

The ongoing skirmishes between the United States and Iran will keep the volatility alive in oil prices. By Friday’s close, the U.S. announced fresh round of sanctions on Iran. This time, the Washington administration targeted the Iranian National Bank.

So far, Iran has given a muted response. But things could escalate quickly. The current technical setup in crude oil shows prices biased to the downside. However, watch for a possible breakout lower to the 56.00 support level.

EURUSD turns bearish after two weeks of gains

EURUSD 2309

The EURUSD currency pair closed on Friday on a bearish note. This marked a bearish close on the weekly time frame. This comes after the currency pair managed to close higher in the previous two weeks. Price action in the currency pair remains subdued, however.

The consolidation near the current lows remains mixed at the moment. There is scope for the currency pair to breakout in either direction. The long term trend in the EURUSD remains down. However, the medium term outlook shows prices trading flat for quite a while.

The currency pair is caught within the range of 1.1100 and 1.0950. As long as this range is maintained, we do not expect to see any fresh lows being formed. To the upside, the resistance level at 1.1100 needs to be breached. But this will be met with the major resistance area of 1.1111 and 1.1130 region.

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