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Gold, WTI Crude oil and EURUSD - Intra week technical outlook, 01/05/20

Gold prices hold steady near support


The precious metal is trading rather flat after the previous rally. However, there are initial signs that the upside is exhausted. This comes following the lower high formation few days ago. But for the moment, prices are trading near the price level of 1708.56 region. Price needs to break make a strong move off this level to confirm the direction.

The bias remains to the downside, however. The lower support is at the 1642.96 – 1643 level. This could mark a normal correction in prices. Following this price action will most likely consolidate within the level of 1708.56 and 1643 levels.

Following this, further breakout from the range will confirm the trends in the gold market. To the downside, the declines below 1643 could confirm a move to the 1580 level of support. Alternately, a move above the 1708.56 could signal a move to the previous highs of 1740 where resistance remains for the moment. But having said that, the bullish flag pattern remains in play, which still gives an upside edge to the gold markets.

WTI Crude oil prices continues to post strong recovery

WTI 2904

Crude oil prices are recovering strongly, following the previous oil market crash. For the moment, prices are higher amid news that the U.S. oil storage facilities are looking at new ways for storage. Elsewhere, the OPEC+ oil production cuts also come into effect, adding to the bullish fundamentals.

The next main resistance level for WTI crude oil is at the 20.00 level. Price action needs to breakout strongly above the 20.00 level to confirm further upside. If there is a successful breakout above the 20.00 handle, then oil prices could target the 28.00 level.

Alternately, failure to breakout off the 20.00 level, price action could retreat lower. The lower end of the range could see the previous lows at 12.86. Note that there is also a double bottom pattern forming at this level, which adds to the bullish upside target. The weakness in the US dollar is also adding to the bullish view in oil prices.

EURUSD likely building up the case for a bullish bias


The euro currency is finally showing some signs of recovery although it could be still too early to tell. The gains in the euro currency came on the back of the ECB meeting. The European Central Bank held its monetary policy meeting on Thursday. However, the central bank left interest rates and its asset purchases unchanged, offering only a cautious forward guidance.

The rebound in the euro currency comes after prices initially fell to the support level of 1.0784. With the support level holding up, the currency pair is pushing higher. We expect prices to move to the upper resistance of 1.1000.

If prices fail to breakout above this resistance then the currency pair could settle back into range. But given that the overall medium term trend is still flat in the EURUSD, we could expect prices to continue consolidating at the current levels.

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