Gold, WTI Crude oil and EURUSD - Intra week technical outlook, 10/07/20

Gold slips away from 1800 level


Gold prices were little changed on Thursday despite a drop in the initial jobless claims report. Gold prices crashed through the 1800 level earlier in the week. Gold prices held ground despite a moderate increase in riskier assets as well. The gains outline the fact that investors remain cautious on the prospects of economic recovery.

Price action is currently trading somewhat mixed. For the moment, gold prices are pulling back after testing the 1800 level. It is quite likely that the precious metal will close into an inside bar pattern. This would infer that a breakout might be possible in either direction.

At the moment, the bias remains mixed. An upside breakout could see gold prices settling back near the 1800 level, if not higher. To the downside, a close below 1791.30 could signal a possible correction lower. Given that traders might be booking profits into Friday's close, there is a slight possibility of a move lower.

Crude oil down over 2% on Thursday

WTI 1007

WTI Crude oil prices are trading weaker amid concerns on a spike in new Coronavirus cases. The rise of the pandemic has pushed many states in the US and elsewhere to reintroduce lockdowns. This is in turn expected to dent the demand for crude oil. Prices are expected to hold around the $40.00 handle ahead of the July 15 OPEC meeting.

Prices are slipping back from the 40 level in the short term. However, the declines might be limited for the moment. The lower support level near 38.00 remains the short term downside target. If oil prices slip below this level, then we expect to see further declines coming our way.

But given the rather mixed market sentiment, oil prices might be holding up at the moment. However, it is unlikely that oil prices will rise back above the 40.00 handle. A close above this level could push oil prices toward the 42 level.

Euro slips on a stronger dollar


The euro currency trading somewhat weaker. The declines come after a rebound in the greenback, which has been falling for four consecutive days. As a result, the euro is seen paring gains from the previous days this week.

Overall, the common currency has not made any major gains so far. Price action remains choppy. The decline off the median line indicates a potential move lower. Watch the price level of 1.1200 in the near term.

A close below this level will push the euro currency down to the 1.1147 level of support. Given the fact that the euro has not tested this level, we could expect a move lower if the declines continue. But note that with price action trading mixed, the declines might remain limited for the moment.

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