ADVERTISEMENT



Gold, WTI Crude oil and EURUSD - Intra week technical outlook, 09/01/19

Gold prices testing the 1280 support

Gold 090119

Gold prices were dragged lower following the previous strong rally that fizzled out just short of the 1300 level of resistance. Since then, gold prices were seen posting a modest rebound off the 1280 level of support which is seen holding the gains in the near term.

At the time of writing, gold prices were seen easing lower and likely to retest the 1280 support again. If the support holds, we could expect gold prices to maintain the upside bounce with the potential for prices of the precious metal to rise to the 1300 handle.

Alternately, failure to offer support at the 1280 level could potentially push gold prices lower with the support at the 1250 handle the likely target. This could form the much needed correction in gold prices as the bias to the upside in the long term is starting to build up.

WTI Crude oil prices touch the $50 handle

WTI 090119

Oil prices maintained the gains and was seen testing the 50.00 handle. The gains came on a sharp rebound off the recent lows at 42.50. With no pullback being formed in the rally to the 50.00 handle, oil prices could risk posting a short term correction.

The rally comes on the validation of the ascending triangle pattern that was formed, following the breakout of the resistance level at 46.00. This put the upside target to 49.50 and with oil prices hovering above the 50 level, we could expect to see some correction.

The resistance level of 46.00 remains a key downside target as oil prices could slip back to establish support. Doing so would confirm the bottom in place with oil prices likely to head back higher. Above the 50.00 resistance the next main target is seen coming in at 54.00 level.

Euro looking to break past the resistance level

EURUSD 090119

The euro currency maintained gains and was seen holding the gains near the resistance level of 1.1450. The current consolidation is seen being capped by the medium term falling trend line which could be difficult for the currency pair to breach.

As a result, we expect the common currency to push lower, but maintain the existing range. With the ascending triangle pattern still in play, there is scope that the euro currency could breakout to the upside.
This could potentially ease the euro's range and put it on path to the upside with further gains in store. To the downside, the EURUSD currency pair could remain trading within the established range with the potential to test the rising short term trend line. As long as this trend line is not breached, the EURUSD is biased o the upside.

Read 486 times

ADVERTISEMENT

ADVERTISEMENT

ADVERTISEMENT

ADVERTISEMENT

ADVERTISEMENT

Newsletter Subscription Form

You are more than welcome to subscribe to our Newsletter and be among the first who get to hear about regular updates on forex and other related news, brokers' updates, websites' changes and more!
I agree with the Terms and conditions and the Privacy policy
Thank you!