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Gold, WTI Crude oil and EURUSD - Intra week technical outlook, 01/05/19

Gold settles near 1285 resistance

Gold 0105

Gold prices have remained muted for the most part this week. Following the strong gains on Friday last week, gold has remained caught within Friday’s range ever since. Having retested the area of 1285, gold prices are likely to hold steady near the resistance level in the near term.

We expect to see gold posting declines in the near term. But the long term rising trend line could act as dynamic resistance. A break below the trend line is required for gold to fall back to the 1273 level where support was previously formed.

In the near term, gold prices could remain stuck within the current levels. A breakout in either direction could make gold to establish the direction for the short term. The FOMC meeting due later today could provide the catalyst.

Crude oil prices could be ready for a rebound

Oil prices have remained weak for the most part after failing to breakout above the 66.00 – 65.00 resistance area.  The failure has pushed oil prices slightly lower. However, on the daily chart time frame, oil prices are seen finding support off the lower trend line of the rising price channel.

We therefore expect to see oil prices rebound in the short term and attempting to retest the resistance level. A lower high being formed below the resistance area could signal a completion to the uptrend.

We could expect oil prices to post a correction. The lower support at 57.50 remains the key level of interest. A retest to the 57.50 handle will potentially mark a reversal in the correction for oil prices.

WTI 0105

EURUSD back at resistance

EURUSD 0105

The euro currency was seen recovering the losses from last week. Price action maintained solid gains as it rose for three consecutive sessions. By Tuesday’s close, the EURUSD closed near the breached support area of 1.1224 – 1.1200.

If we see a reversal at this area, then the EURUSD could be once again looking to post declines. However, price will have to break past the previous lows formed at 1.1115 in order to continue the downtrend. But it is more likely that the EURUSD could remain flat near the levels for the moment.

A breakout above the resistance area could however signal the euro currency to extend the gains. The next main resistance level of interest will be seen at 1.1395.

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