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Gold, WTI Crude oil and EURUSD - Intra week technical outlook, 03/07/20

Gold holds steady just below the 1800 mark

XAUUSD 0307

Gold prices are trading within reach of the 1800 level. However, price action remains somewhat subdued as it pulled back lower. The gains in the precious metal comes amid a pullback following a rise to the 1788 handle earlier in the week. However, gold prices are well positioned for further upside.

For the moment, watch the rising trend line. If price tends to move closer to the trend line, it will increase the odds of a possible breakdown lower. For the moment, the confluence of the trend line and the horizontal support level might offer prices from falling further.

But in the event that gold prices slop below the 1730 level, then we expect a modest correction down to the 1683 handle. A close below this level could accelerate the declines down to the 1643 level where the next support level resides.

Oil consolidating below the 42.00 handle

WTI 0307

WTI Crude oil prices are consolidating consistently below the 42.00 level of resistance. Price action is quite subdued below this level, but we could expect to see a breakout anytime soon. The fundamental outlook in oil prices remain mixed with concerns of slowing demand and the fact that OPEC supply is still considerably higher.

As a result, the bias in crude oil remains mixed. If prices breakout strongly above the 42.0 handle, then we expect the upside to prevail. This will open the gains toward the 65.00 handle eventually.

However, if the 42.00 level of resistance holds up, then we expect the consolidation to continue. There is also scope for oil prices to start declining lower. The minor support at 35.00 might hold the commodity from posting further declines.

EURUSD settles into a range

EURUSD 0307

The euro currency has not made much gains in recent days. This comes amid a mixed US dollar outlook which has been responding to the broader market themes. For the moment, the euro attempted a brief rally to the 1.1300 handle.

But failing to make further gains saw prices turning bearish as a result. This keeps the sideways range in the EURUSD intact. We continue to maintain the downside bias toward the 1.11475 as the level of support that might be tested in the near term.

The lower highs that are consistently forming might indicate the bias is shifting lower. However, we need to see stronger evidence of the downside move in prices for this to materialize. A close below 1.11475 could open the way for the euro to slip back to the 1.1000 level to test the support level once again.

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