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Gold, WTI Crude oil and EURUSD - Intra week technical outlook, 10/05/19

Gold prices testing the 1285 resistance

Gold 1005

Price action remains choppy across the markets. The volatility comes amid Trump’s tweets about China’s trade negotiations and tensions surrounding Iran’s threat to withdraw from the nuclear deal. Gold prices as a result have remained volatile over the past two days.

At the time of writing, gold is seen testing the key resistance level of 1285. So far, price action has managed to hold off from pushing any higher. However, a daily close above this level could potentially shift the bias to the upside.

If gold prices close above 1285, then we expect to see the bullish sentiment getting underway. Price action is likely to continue to break out higher with the potential for gold to test the 1300 – 1320 levels in the near term. For the moment, it is best to remain on the sidelines and watch as price action unfolds.

Crude oil breaks the minor trend line

WTI 1005

Oil prices have moved into a consolidation phase for the most part after prices initially dipped to lows of 61.20. As a result, resistance level has formed near the 62 handle. Following a test of this level, oil prices have remained trading flat, but posting higher lows.

This has potentially morphed into an ascending triangle pattern. A breakout above 62 resistance will see crude oil testing the precious resistance level of 63. A retest of this level rather firmly could potentially seal the upside bias in crude oil prices.

If the 63 level of resistance is not breached, then oil prices are likely to break down lower as a result. The initial downside target will be the current resistance level of 62 which could act as support. A break down below this level will see prices accelerating lower to test the previous lows just above 60 with a further decline to 57.50.

Euro attempts to clear 1.1200 handle

EURUSD 1005

The common currency has turned bullish in the very short term as price action is seen testing the resistance area of 1.1200. A daily close above this level is required in order for the EURUSD to attempt posting further gains to the upside.

On the daily chart, price action is set to close with some bullish momentum, leading to a bullish engulfing candlestick pattern. This could confirm the upside bias in the near term. However, the EURUSD will need to test the support at 1.1200 in order to post further gains. The previous highs near 1.1260 will come in as the next test to the upside.

A breakout above 1.1260 is required to confirm the bullish move in the EURUSD currency pair. The long term upside target remains at 1.1320.

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