ADVERTISEMENT



Gold, WTI Crude oil and EURUSD - Intra week technical outlook, 01/07/20

Gold prices hold steady as it approaches the 1800 target

EURUSD 0107

Gold prices are on track to making modest gains as it approaches the highest levels in over eight years. The gains in the precious metal come on the back of mounting fears of a resurgence in the coronavirus pandemic. With the current pace of gains, the upside is likely to continue as the target of 1800 nears.

For the moment, the main price level of interest is the 1730 level which was previously the upper level of the sideways range. With prices breaking out above this level, we expect any dips to stall back at the 1730 handle. The Stochastics oscillator is somewhat over sold and we haven't had any decent pullback just as yet.

To the downside, if gold breaks down below the 1730 level, then we could see a sharp correction in the making. This will initially push the precious metal down to the 1683 region followed by a stronger break out to the downside.

Crude oil holds steady, amid mixed signals

WTI 0107

Oil prices are trading rather flat following Monday's strong gains. Price action remains mixed after fresh concerns of economic lockdowns, especially in the US. This could potentially impact the supply side. However, at the same time, OPEC+ is said to be considering further oil cuts in August. The previous supply cuts were initially supposed to end in June but was later extended to July.

Oil prices remain within reach of the 42.00 handle. However, once again, we expect to see a pullback taking place. This is unless of course, oil prices post a strong continuation above the 42.00 level of resistance. Price must close convincingly above this level for any hopes of further upside.

To the downside, if the 42.00 level holds up, then oil prices could head lower. This will potentially open the way for a correction down to the 28.00 level where there is a major support area. In the short term however, the 36.00 level could act as a soft support level.

Euro struggles to breakout to the upside

EURUSD 0107

The euro currency is trading rather flat over the past few days. This comes amid the US dollar firming to the upside. The dollar found interest after fresh concerns on the spread of the coronavirus pandemic. The month end and quarter end flows are also partly responsible for the dollar's strength.

In the near term, the EURUSD is likely to drift sideways. There is already a lower high formed above the 1.1300 handle, few days ago. Meanwhile, a local low has also formed near 1.1177. So, unless the EURUSD breaks out to the downside, we do not expect price action to move much.

Note that the consistent lower lows could potentially result in a downside breakout in prices. Therefore, watch the key support area near 1.1147. If price action closes below this level, then we suspect a move to the 1.1000 handle.

Read 169 times

ADVERTISEMENT

ADVERTISEMENT

ADVERTISEMENT

ADVERTISEMENT

ADVERTISEMENT

Newsletter Subscription Form

You are more than welcome to subscribe to our Newsletter and be among the first who get to hear about regular updates on forex and other related news, brokers' updates, websites' changes and more!
I agree with the Terms and conditions and the Privacy policy
Thank you!