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Gold, WTI Crude oil and EURUSD - Intra week technical outlook, 04/11/20

Investors bid up gold price on Election day


The precious metal is holding a three-day winning streak reflecting the cautious investor sentiment. Prices have managed to reverse from the 29th October lows of 1867 to reclaim the 1900 level once again. But the volatility is likely to rise into the evening as details of the elections start to come out.

For the moment, the upside is capped near the horizontal resistance level of 1900 and the 50-day moving average. However, there is a strong scope for price action to breakout from this level, driven by investors. This will also potentially push the bias to the upside and could rekindle bets for the rally in gold to resume.

To the downside, the previous lower support near 1850 continues to remain the downside target. We could expect gold prices to remain range bound within the said levels with no clear trend in sight yet.

WTI crude oil extends gains

WTI 0411

WTI crude oil prices are posting strong gains for the second consecutive day. Price rose as much as 3% intraday on Tuesday. The gains come after last week's decline which saw oil prices losing close to $6 a barrel. This sent price down to the 36.15 level of support.

Since Monday, there has been a rebound at this level. After a brief intraday spell of trading below 36.15, oil prices managed to close higher on the day. This is followed through with gains from Tuesday as well. The rise in oil prices comes mostly on the back of the U.S. dollar which his trading weaker on election day.

Therefore, it is quite likely that despite the current gains, oil prices could just as well give back the gains made. This means that the 42.00 and 36.15 levels continue to remain the sideways range for the moment. Only a strong breakout from either of these levels could confirm the trend in the oil market.

EURUSD rises to a two-day high


The common currency is making gains on the back of a weaker dollar. After nearly six consecutive sessions of declines, the euro has managed to rebound. This rebound came just a few pips off the 1.1600 level of support. This marks a second time that the common currency has reversed without testing the 1.1600 level.

The current gains could see the 50-day moving average challenging prices from moving higher. But if price closes above the 50-day moving average, then we could see further gains in store. This could also potentially see the euro currency likely to continue the upside trend.

To the downside, the support area near 1.1600 will remain the lower target. But considering that this level hasn't been tested just as yet, we could see some consolidation taking place. The Stochastics oscillator on the daily chart is moving out from the oversold levels, adding to the upside bias.

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