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Gold, WTI Crude oil and EURUSD - Intra week technical outlook, 07/08/20

Gold continues to push high

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Gold prices surged to record highs on Thursday as the pandemic has bolstered the outlook for the safe haven. The gains in the precious metal comes as central banks become the biggest buyers of bonds. This in turn is pushing investors into the safe haven asset, despite the fact that it does not give any yield. After breaking past the $2000 threshold, gold prices edged higher above the $2050 handle. But the sharp pace of gains could see prices snapping back which could lead to a correction.

For the moment, there is no indication that gold prices will pop back lower. Therefore, it is quite likely that the precious metal will now likely target the $3000 handle next. In the near term, support is likely forming around the $2000 level in case of any pullback.

But give the current conditions in the gold markets, we might just be able to see the precious metal pushing higher.

Crude oil prices hover near a 5-month high

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Price of crude oil managed to break the range it established over the past few weeks. Price action managed to breakout above the 200-day moving average and the horizontal resistance level near 42.00. The gains come as the weekly US crude oil inventories released on Wednesday showed a strong shortfall. Further to this, few OPEC member nations are also pledging to cut output which adds to the bullish case.

But at the time of writing, the commodity is seen falling back below the 42.00 handle. Unless we see a strong daily close above this level, WTI crude oil could potentially move into a sideways range back within the 42.00 and the 41.00 levels in the near term.

For now, price action might take support off the 200-day moving average. This will potentially give the upside in the commodity. Below the 200-day moving average, we also have the 50-day moving average which might also act as support in case prices slip further.

Euro halts gains just below 1.1900

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The common currency managed to recover ground after falling for two consecutive days earlier in the week. Price action is back near a fresh two-year high on the back of a weaker US dollar. Although the dollar strengthened earlier in the day, it still remains weak.

At the same time, the Euro is seen trading near just a few cents below the 1.1900 handle. We could expect price action to go easy but pick up momentum into the Friday payrolls report.

In the near term, the EURUSD might be consolidating within 1.1900 and 1.1700 levels. Only a clean break from either of these price levels will confirm the next leg in the direction of the common currency. To the downside, below 1.1700, the EURUSD might be at risk of falling to the 1.1600 level where we see a strong support level that is pending a test.

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