Gold, WTI Crude oil and EURUSD - Intra week technical outlook, 08/12/20

Gold prices hit 50-day moving average

The precious metal is holding steady after it rose past the key 1850 level earlier this week. The pause comes after a one day strong rally in prices. The gains pushed gold prices to test the 50-day moving average, which could act as resistance.

As long as prices remain below this level, we could expect gold to retest the 1850 handle. Establishing support at this level could signal further upside. The next key challenge will be the 1900 psychological level.

To the downside, if the resistance remains strong then gold prices will be testing the 1850 level. This will be key as a break down below the 1850 could accelerate declines further. Gold prices could eventually push down to the 1750 handle.

Oil prices take a break after rising above 46

WTI Crude oil prices are trading weaker on Tuesday. The declines come as price action initially tested above the 46.00 level on Friday last week. Following this, price action closed in the red on Monday. At the time of writing, oil prices are trading flat.

This could mean that prices could remain consolidating near the current levels. For the moment, the support level is seen near the 44.00 area. As long as prices remain above this level could we expect to see further upside.

However, if price action loses the 44.00 level of support, then we could expect further corrections. This would push oil prices down to test the 42.00 level next. Establishing support here could renew the long term bullish bets in the market.

EURUSD in a holding pattern

The euro currency is trading flat after rising above the 1.2100 level. The flat price action trading comes ahead of Thursday's ECB meeting. Speculation is high that the central bank will announce further stimulus.

The euro is likely to react to the news but for the moment, is trading flat. This could continue into the Thursday's meeting. Near term support is seen near the 1.2100 level. If this level gives way, then the EURUSD could post a stronger correction.

Below the 1.2100 level, the next key level is at the 1.1900 price area. We also see a confluence with the 50-day moving average which could infer this to be a strong support area.