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Gold, WTI Crude oil and EURUSD - Intra week technical outlook, 02/10/19

Gold rebounds as U.S. data weakens

Gold 0210

Gold prices rebounded strongly on Tuesday following two sessions of declines. However, price action remains below the 1497 level where resistance is likely to be established. The rebound comes as gold formed a lower high and broke to the downside. The bias remains to the downside currently.

The lower support at 1440 remains the downside target. However, if the current bullish momentum continues, we could expect price to continue higher. But the resistance area of 1522 – 1440 is likely to keep the upside in check.

The stochastics oscillator is currently showing a hidden bullish divergence. This gives evidence to the upside building up. Therefore, the bias could remain mixed and depends on the how the fundamentals will drive the data. A retest of the support area of 1440 will however mark the correction to the uptrend.

Crude oil extends declines from rising wedge

WTI 0210

WTI Crude oil prices were seen pushing lower. Price action extended declines for eight consecutive sessions. The current declines come amid growing concerns of slowing growth which could see demand for crude oil easing.

From the technical perspective, the current downside momentum could see oil prices testing the 52.00 handle. Further declines will see prices testing the 50.00 level. In the short term, any rebound will see prices retesting the breakout level.

The daily stochastics oscillator is seen posting a lower high against a higher low in price. This also points to a possible rebound in prices. But the upside will be limited to the breakout level. In the event that price breaks higher, we could anticipate a change in trend in crude oil prices.

EURUSD attempting to rebound higher

EURUSD 0210

The EURUSD currency pair was seen reversing the declines from Monday after initially falling to a two-year low. The declines come amid initial strength in the USD which sent the common currency tumbling lower.

Price action is approaching the resistance level of 1.0958. A daily close above this level will confirm further upside. The daily stochastics is also pointing to a bullish divergence. If EURUSD breaks out above 1.0958, the next upside will see the currency pair testing 1.1111 level.

In the event that the resistance level holds, the EURUSD could remain range bound within 1.0958 and 1.0900. A breakdown below this level will potentially trigger further declines over the week.

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