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

Gold extends declines as 1280 within sight

Gold 0503

Gold prices maintained the bearish moment in the early part of this week, extending the declines from last Thursday. Prices were seen trading just above the 1280 handle which would mark a retest of the support level that was established in January 21 - 28 period.

If the 1280 support holds, gold prices could be seen pausing the bearish decline in the short term. This would open up prices to trade within the range of 1280 and 1300. Given that the support level from the triangle pattern is seen at the 1305 level, we expect a potential resistance zone to form between 1300 - 1305.

A reversal off this level could see gold once again aiming for 1280 followed by a move to the 1240 region. The bearish bias will be invalidated, if gold prices manage to rebound above the 1300 - 1305 level and form support above this region.

WTI Crude oil moves back into range

WTI 0503

After briefly slipping late last week, WTI crude oil prices were seen quickly recovering from the losses. However, it is too early to tell whether this recover will be sustainable. There is a bullish ascending triangle pattern forming on the charts with the resistance level seen at 57.25.

With the visibly higher highs being formed, a breakout above 57.25 could trigger a move toward 59.25 at the very least. However, there is also the possibility that oil prices could be merely retesting the previous highs.

Failure to post any significant highs on this rebound could make oil prices vulnerable to the downside. The target at 54.00 remains the long term target, while we expect to see the minor support at 55.00 holding out in the near term.

EURUSD revisits old support level


The common currency continues to maintain its sideways range with prices seen falling back to the familiar support level of 1.1312 - 1.1282 region. The declines came after the common currency briefly rose to highs near 1.1420.

The decline back to the support level could keep price action rather muted ahead of this Thursday’s ECB monetary policy meeting. The monetary policy could potentially play a major role in the direction of the currency pair.

If the current support fails, then the EURUSD could be seen extending the declines to previous lows of 1.1200. However, to the upside, the resistance level at 1.1450 will need to be breached to post any further gains.

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