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Gold, WTI Crude oil and EURUSD - Intra week technical outlook, 11/09/20

Gold rises for a second day

XAUUSD 1109

The precious metal is posting strong gains, marking a second day of increase. The gains in the precious metal comes as the US dollar is trading on a weaker note. The latest unemployment claims report also has pushed the dollar on the backfoot. So far, gold prices have been trading rather flat, but at the same time price action is also consistently posting lower highs.

The support level near 1900 is holding up strongly for now, offering support to the upside. The precious metal will need to breakout from the minor trend line to confirm the upside. This will potentially see gold prices rising back higher. However, we expect price action to stall near the 2000 level.

Only a strong close above 2000 can confirm further upside for gold. As a result, we could see gold prices trading flat within 2000 and the current 1900 level of support. A breakout from this range is required to confirm the next direction in the trend.

WTI Crude oil trading flat

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Crude oil prices are trading flat following a modest rebound in prices on Wednesday. Oil price suffered another major setback this week as weak economic prospects dampened the outlook for oil demand. After trading near the 41 - 42 level for a few weeks, oil prices broke down eventually.

For now, the declines look to be stalling near 36.70, which marks a three month low. Still, unless we see stronger price action to the upside, the downside bias remains. The previous lows near 36.70 will likely be tested once again.

To the upside, the price level near 42.00 will probably keep the commodity from posting further gains. This will mean that oil markets could once again enter into a sideways range within the said levels. To the downside, if oil crashes through the 36.70 level of support, then we expect a decline toward the 30 region.

Euro jumps as ECB stands pat on policy

EURUSD 1109

The euro currency is posting strong gains which is so far erasing the losses from the past few days. Prices turned bullish from Wednesday as the declines came to a halt and the euro currency started rising once again in the run up to the ECB meeting. The declines earlier in the week came on the back of speculation that the ECB could address the euro's exchange rate.

However, with the ECB unwilling to add more stimulus and merely giving lip service on the exchange rate, the common currency is holding up the bullish momentum.

The euro briefly tested the 1.1900 handle before pulling back intraday. If the euro closes above 1.1900 then we could expect price to fly through 1.2000 handle to rise even further. To the downside, the outlook is limited for now.

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