Gold, Oil and EURUSD Weekly Analysis - Week 45

Gold attempts to recover loses

The precious metal was trading weaker over the week, as price action is move lower following the break down near the 1900 handle. This has pushed price action closer to the 1850 level. However, the precious metal closed in the green on Friday, making an attempt to recover some of the loses.

On the daily chart, the Stochastics oscillator has moved closer into the oversold levels. Therefore, a recovery from here on cannot be ruled out. The 1900 level marks a strong price point which is seeing a lot of consolidation. A breakout above this level could confirm further upside in gold.

For the moment though, gold remains directionless. To the downside, the next main level of support is seen near the 1850 area. If gold drops to this support level, then price action could see a rebound. But a failure to hold on to this support level will see further declines coming.

Crude oil breaks down below main support

Oil prices continue with their bearish trend with price action losing the 36.15 support level on Friday. The declines come on the back of rising Coronavirus pandemic, especially in Europe and the United States. This has pushed prices lower on expectations of subdued demand.

Oil prices have been trading flat for the most part. Therefore, the current declines could see just a modest rebound taking place. The Stochastics oscillator is well oversold and coincides with the decline in prices as well. As a result, a rebound cannot be ruled out.

Oil needs to close back above the 36.15 handle to confirm the sideways trend. This will put the price action back between the 42.00 and 36.15 levels. The upside gains remain quite capped for the moment. In the event that oil prices continue lower, then we expect a drop to the 30.00 level of support next.

EURUSD at a five day losing streak

The common currency continues to remain a favorite among sellers as price action fell for five straight sessions. The declines came on the back of the ECB meeting last week. The central bank has signaled more stimulus measures at the December meeting. This resulted in investors selling the euro currency.

The current declines are yet to see price testing the 1.1600 level of support. Establishing support firmly at this level will see a potential rebound taking place. However, traders should also consider the uncertainty in the USD with the election week ahead.

It is unlikely for the results to be announced on the election day and could lead to volatility in the markets. For the moment, the EURUSD looks like it could stall the declines near the 1.1600 level. But if the common currency loses this handle, then further declines are quite likely.