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Gold, WTI Crude oil and EURUSD - Intra week technical outlook, 01/02/19

Gold rally stalls, start of a decline?

GOLD 010219

Gold prices were seen advancing by Thursday as price action briefly tested the highs of 1326. However, the gains were quickly erased as gold formed an inside bar on the 4-hour chart and started its decline. The decline below 1320 could potentially mark a move toward the 1300 level where the next support is likely to be established. The decline below 1300 support could indicate further correction which could push gold prices down to the 1280 handle.

Alternately, if we see a consolidation at the 1320 level then we could expect gold prices to potentially maintain the upside gains and test fresh highs.

Watch the minor rising trend line marked on the chart. A breakdown off this trend line could signal a move toward the 1300 level.

WTI Crude oil retest 54 resistance

WTI 010219

Crude oil prices rallied to test the resistance at the 54 handle. Price action was seen posting a strong reversal pattern near the resistance level which could potentially mark a correction to the downside. However, given the fact that price action tested the 54 handle previously without testing the 50 level of support, we expect to see some consolidation taking place.

The decline toward 50.00 handle could potentially stall the declines in the near term with a potential break down below 50 accelerating the declines to the 46.82 level of support.

EURUSD retreats off the highs

EURUSD 010219

The common currency which maintained some gains saw price action testing the highs of 1.1500 level. Price action was seen reversing the gains off this level which pushed the euro back to 1.1450 level of support.

At the time of writing, the euro currency was seen briefly slipping below this level. However, a stronger close below this support is required for price action to confirm the downside.

The minor faling trend line is likely to act as dynamic support to the downside coming in between 1.1400 and 1.1350 level. This would also potentially mark a retest of the breakout level from the falling price channel.

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