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Gold, WTI Crude oil and EURUSD - Intra week technical outlook, 10/04/19

Gold regains bullish momentum

Gold 1004

Gold prices rallied to the upside since the week’s open. This comes as price settled near the support level of 1284 before posting a rebound. The current rally has pushed gold prices to the upside to test the $1306 region. While this is a level that we have been expecting for a retest, there is scope for further upside.

It is therefore ideal to wait for a bearish signal from the daily chart as the momentum is still to the upside. Prices are likely to maintain their position above the 1280 handle with the $1300 level likely to see multiple retests.

If gold prices advance higher, we could expect a test toward the $1320 level. This marks the next main resistance level. As long as this level holds, the bias still remains to the downside, but can be seen to be weakening. For the moment, it is best to remain on the sidelines until there are further cues that can be found.

Oil prices slow gains just below resistance

WTI 1004

Oil prices were seen turning a bit weaker after posting strong advances over the past two daily sessions. However, the pullback as seen by the current price action could be limited. Oil prices have still more room to run to the upside. The main resistance level is seen at the 66 – 65 region.

In the near term, any declines could be limited to the 62 handle. The stochastics oscillator is strongly overbought and the momentum is also supporting this currently. While price action is showing signs of weakness just below the resistance area, it is best to remain on the sidelines for the moment.

The weekly crude oil inventories report will most likely be the near term catalyst for oil prices. Having said that, watch the resistance area near the 65 – 66 region where there is a high probability for oil prices to post a reversal to the trend.

Euro attempts to post gains

EURUSD 1004

The euro currency has managed to rise for the second consecutive session. However, the gains remain modest in nature and comes ahead of this week’s ECB monetary policy meeting. Although no major changes are expected the central bank could play a dovish hand.

The euro currency is seen maintaining its bearish to flat trend so far. Price action remains firmly rooted near the 1.1224 – 1.1200 region. In the near term, we expect price action could likely dip to this level. Watch the minor support level seen at 1.1240 which could stall the declines in the near term.

If the previously established support level is not tested once again, then it gives conviction for the EURUSD to test the upside. We expect price action to see a rally toward 1.1300 and possibly to 1.1400 region in the near term. But a lot would depend on how prices react to the current dip

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