Sign In   Register


Gold, WTI Crude oil and EURUSD - Intra week technical outlook, 06/11/19

Gold turns bearish with further declines likely


The upside consolidation in gold seems to have ended with the precious metal on track to lose more than one percent by Tuesday’s close. The declines in the gold prices comes as the risk sentiment improves. Investors cheer the progress on trade talks which has taken the turn for the better.

From a technical perspective, the current declines in gold prices confirms the bearish retracement that we have been expecting. Keep an eye on the price level of 1497.74. As long as any short term retracement occurs to this level it can be confirmed as resistance.

If the price point is confirmed as resistance, then gold prices could be seen pushing lower. The downside target is at 1440. The decline to 1440 will mark the correction to the longer term uptrend in gold prices. In the near term, also a rebound above 1497.74 could also put the downside bias at risk. However, with the daily Stochastics currently pushing lower, the bearish momentum could continue.

Crude oil prices continue to recover

WTI 0611

Oil prices have managed to maintain the recovery, marking a three day winning streak. This has led to oil prices paring losses from the previous sessions. The current gains could however see the test of the trend line which could offer some resistance in the short term. However, the bias looks a bit bullish for the moment.

The gains in oil prices came amid the improving market sentiment. Both the U.S. and China have been also looking at rolling back some of the tariffs levied earlier this year. This is seen as a positive news for investors. Talks about OPEC cutting oil production is also another factor giving a boost to prices.

From a technical perspective, we could expect the gains to stall once oil prices hit the trend line from below. We could then see some consolidation before the upside prevails again. The main long term target for crude oil is now seen at 60.64 level.

EURUSD turns bearish but stay cautious


The euro currency has been posting steady declines for two consecutive sessions. Price action has remained around the price points of 1.1129 – 1.1111. A convincing close below this level is required in order to confirm the downside.

This will once again put the common currency back into the consolidation phase. The lower target level will be the support area 1.0958. A test of this level could stem the declines for the moment. The euro has turned weaker amid the resurgence in the USD. The dollar has gained in momentum after posting declines in the previous weeks.

But keep an eye out on the support area of 1.0958. A decline below this level will potentially confirm further lows to come. However, price action in the EURUSD will need to test the previously established lows at 1.0900.

Read 626 times