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Gold, WTI Crude oil and EURUSD - Intra week technical outlook, 09/10/20

Gold trades flat on stimulus talks


The precious metal was trading flat and gave up the gains from earlier in the day. This comes as price action managed to close bullish the day before. The minor bullish bias comes on the back of hopes that a partial coronavirus stimulus deal would be struck to support the U.S. economy.

Price action remains range bound from Tuesday's price action. Prices are still struggling near the 1900 level following the failure to breakout from this level earlier. The strong resistance has pushed price action lower. The current rebound could see another retest of this level.

To the downside, the bearish momentum could see price action testing September 28 lows around the 1860 - 1850 level. We could expect to see this support level holding up in the near term. However, a break down below this region could expose gold prices to further lows.

Oil gains as Norway strike continues

WTI 0910

WTI Crude oil prices are trading bullish on Thursday following a flat close the day before. The gains saw prices testing the 41.00 level briefly before pulling back. The gains come following continued oil strike in Norway. By some estimates, the strike is expected to cut nearly a quarter of Norway's oil output.

For the moment, oil prices are range bound within the 41.00 handle and the 36.50 level of support. A breakout from this range is required to confirm further upside. Given the strong support near the 36.50 level, the breakout above 41.00 could see some near term gains in the making.

However, OPEC, in an announcement said that oil demand could flatter by late 2030's. Demand for oil continues to remain doubtful amid the latest decline in global demand. With more and more countries caught up with the second wave of the Coronavirus.

EURUSD trades weaker below 1.1800


The euro currency is trading mixed as price remains weak to the downside. This comes as the U.S. dollar has been wavering on the fundamentals. While the USD earlier dropped on stimulus talks, it strengthened following news that President Trump was ending the stimulus negotiations. However, following this, President Trump hinted again at looking at a smaller package. The USD however strengthened on the news.

The EURUSD is range bound within the 1.1800 resistance level and the 1.1600 level of support. The breakout from this range is required for price action to further establish the future trend. For the moment, the recent gains to the 1.1800 level marks a retest of this region as resistance.

Therefore, following this, we expect the EURUSD to decline in the near term. A break down below the 1.1600 level is required to confirm the downside bias. A close below this level could potentially open the way for a stronger correction for the common currency.

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