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Gold, WTI Crude oil and EURUSD - Intra week technical outlook, 09/10/19

Gold prices rise modestly

Gold 0910

The precious metal was seen posting some modest gains after extending declines on Monday. The gains came as risk sentiment fell ahead of the U.S and China trade talks. With the U.S. administration moving to blacklist some Chinese technology firms, investors remain cautious.

As a result, gold prices have formed an inside bar following Monday’s declines. This could potentially see a breakout in either direction. To the upside, price needs to close above last Friday’s doji highs of 1515.60 to confirm the upside. So far, gold prices have formed a second consecutive lower high.

To the downside, the precious metal needs to fall to the previous lows of 1472 to confirm the downside. Therefore, there is a good chance that gold prices could remain somewhat range bound within the said levels in the near term.

Crude oil resumes declines

WTI 0910

Oil prices gave up the modest gains made earlier over the past few days as the bearish momentum resumes. Fundamentals for the oil market remains bearish at the moment, giving little impetus for buying.  Despite the declines, oil prices are yet to test the psychological handle of $50.00.

Meanwhile the daily Stochastics is signaling a fresh sell signal which could eventually see oil prices slipping to the $50.00 handle. As long as this support holds, we expect the upside to remain. There is scope for WTI crude oil to briefly test the breakout level from the ascending wedge pattern.

However, for the moment the bias remains to the downside. We expect to see a potential rebound off the support level at 50. A breakdown below this level will see oil prices slipping to the 42.50  - 42.00 region where the next support level resides.

EURUSD retesting support


The EURUSD currency pair extended declines on Tuesday and fell to the previously breached resistance level. Price action is now testing the 1.0958 level for support. If support is established here, the upside bias could be building up for the currency pair.

However, price action remains mixed with some of the flows in EURUSD dependent on the USD strength. The U.S. dollar index has been trading mixed largely due to the uncertainty in the markets. For the near term, if the support holds, then the EURUSD could be on track to test 1.1111 – 1.1129 level of resistance.

To the downside, if the support breaks, then the EURUSD can extend the declines down to the previous lows of 1.0900. We expect that prices will hold out this established low in the short term. Further declines below this level can be ruled out for the moment.

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