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Gold, WTI Crude oil and EURUSD - Intra week technical outlook, 04/03/20

Gold volatility will continue

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The precious metal continues to remain perched near the highs, albeit with some volatility. Gold prices continue to remain in favor as now investors shift attention to monetary policy. Many expect central banks to cut rates to support the lower growth outlook.

The precious metal is paring losses and has reached back to the previous highs. However, question remains if the bullish gains will continue. Prices will need to breakout above the highs of 1660.

The Stochastics oscillator could potentially shift the momentum to the upside. However, if the Stochastics oscillator shifts lower, then it could indicate weakening momentum. This will potentially see a possible shift to the downside.

Crude oil stays afloat on OPEC cuts

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Oil prices are staying afloat on hopes that OPEC will cut production. This comes as global growth forecasts are expected to fall on account of the Coronavirus outbreak. In the last few days, there have been rumors that Saudi Arabia and Russia might agree to the production cuts. OPEC members are due to meet in a few weeks time.

Crude oil prices are somewhat weaker on the day. This comes after prices turned bullish just earlier in the week. The bullish engulfing candlestick could indicate a possible move to the upside. However, overall, prices could be forming a bottom near 45.20.

As long as the bottom holds, prices could be aiming for 52.00 handle. In the near term, we expect a retest of this level. However, if given the current volatile conditions, there is risk of a move to the downside.

EURUSD rises to a one-year high

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The common currency is maintaining its bullish streak as price action touched a new one year high. The gains came on the back of a weaker USD. However, it is questionable whether the gains can continue. For the short term, the economic data from the Eurozone is turning out to be somewhat stable and positive.

From a technical standpoint price action is holding steady near 1.1200 and 1.1100 region. A breakout from this level will possibly trigger further gains or a possible decline. To the downside, the support area of 1.0958 level.

The Stochastics oscillator is currently showing a hidden bearish divergence. This could be indicative of a possible decline back to the 1.0958 level. Further declines could be limited to the February lows of 1.0800.

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