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Gold, WTI Crude oil and EURUSD - Intra week technical outlook, 06/11/20

Gold rises to a two-month high

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The precious metal is posting strong gains on Thursday, rising nearly 2% on the day. As a result, the precious metal is trading near a two-month high. The gains come on the back of the strong likelihood that Joe Biden would likely clinch the election. Counting after the U.S. elections are still underway, but data shows that Joe Biden is within reach of coming out with a majority.

The gains in the precious metal come after lot of consolidation near the 1900 level of support/resistance. Price action has been trading flat near this level for nearly a month. The current gains could see this sideways range being breached. It could also propel gold prices higher.

To the upside, the next key resistance area will be the 1950 level. But further gains cannot be confirmed unless gold prices manage to form a strong support near the 1930 levels. To the downside, the 1900 level of support is likely to hold the precious metal from posting further declines.

Crude oil marks a three-day winning streak

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Crude oil prices have managed to make a strong recovery, rising for three consecutive sessions. The gains come despite more and more countries imposing lockdown measures to contain the pandemic. On Thursday, price action was somewhat subdued. But given the strong pace of gains, the muted price action can be expected.

For the moment, oil prices are stuck back near the 50-day moving average. Any gains above this level could see the 200-day moving average coming in as resistance again. Therefore, unless there is a strong breakout above the 42.00 level the sideways range in oil prices could still linger.

This could mean that there is a risk of prices pulling back once again. A close below the 36.15 level could see further declines. For the moment, the sideways range between 42.0 and 36.15 level seems to be holding up.

EURUSD advances on a weaker dollar

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The euro currency is holding on the gains for the third day in a row. This comes amid a volatile Wednesday which saw prices trading slightly in the green but with larger range. The current pace of gains comes as the U.S. dollar is posting strong declines. This could potentially push the common currency even higher in the near term.

For the moment, the 1.1900 level is likely going to be the key challenge area for the euro currency. Any pullback ahead of this level could still see the EURUSD maintaining a new sideways range with 1.1800 as support. Only a strong close below 1.1800 could open the way back to the 1.1600 level.

The Stochastics oscillator is also strongly moving out from the oversold level, adding to the upside bias. A breakout above the 1.1900 level will be closely watched. This could open the way for further gains toward the 1.2000 level which has remained elusive up until now.

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