ADVERTISEMENT



Gold, WTI Crude oil and EURUSD - Intra week technical outlook, 03/05/19

Gold extends declines but still remains flat

Gold 0305

Gold prices fell on Thursday, a day after the Federal Reserve’s meeting saw the forward guidance not as dovish as expected. The precious metal extended declines to test lows of 1266.18 before recovering.

In the near term, gold could remain range bound with a little bit of an upside bias. The resistance level near 1279 could be tested in the short term. Forming resistance at this level will potentially mark the end of the retest as the precious metal starts to extend lower.

The long term target for gold remains anchored to the 1240 – 1250 region. However, failure to post the declines could signal a possible move to the upside. Today’s payrolls report could be just the catalyst.

Oil prices likely to retrace back to 63 handle

WTI 0305

WTI crude oil is likely to push back to the upside as the current downside momentum could stall. This view comes as oil prices failed to make any retracement to the upside ahead of the declines.

As price action extends out from the rising price channel, we expect to see a retracement to the 63 region where resistance could form in the short term. A reversal at this level will trigger further downside as oil prices target the 57.50 handle.

If the current declines continue, crude oil could be seen testing the 60.00 level. This area marks a level of support and could offer some rebound in prices.

EURUSD back to range trading again

EURUSD 0305

The common currency was seen giving up gains on Wednesday evening after the Fed meeting. This came amid prices initially surging to test highs of 1.1260 before easing back. The current declines are on track to erase the gains from the week before.

With a modest rebound off 1.1200 level, the euro currency continues to decline testing lows of 1.1174 at the time of writing. We expect the declines to continue lower. The support area near 1.1140 – 1.1120 could offer some support in the short term.

A rebound off this support could stall the declines pushing the EURUSD to trade sideways within 1.1200 and 1.1120 regions.

Read 583 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!