Gold, WTI Crude oil and EURUSD - Intra week technical outlook, 11/10/19

Gold looking weaker as gains are erased

Gold 1110

The precious metal which has been trading rather flat over the past few days was seen accelerating the declines on Thursday. The declines come following improved risk appetite in the markets. The U.S. and China trade war narrative was the overwhelming theme over this week.

On Thursday, U.S. President tweeted that he will be meeting China’s vice-premier. Risk appetite returned on the back of this news, pushing safe haven assets lower including gold. Gold prices have primarily been attempting to breakout higher. However, with prices caught within 1522 and 1497, the downside is becoming increasingly possible.

A convincing close below 1497 will confirm the downside in gold. The precious metal is due to correct the longer term uptrend. The support at 1440 remains the key price level initially. A break down below 1440 could however trigger further declines.

WTI Crude oil attempting to rebound

WTI 1110

Crude oil prices were seen attempting to form a bottom after the initial breakout from the ascending wedge pattern. However, the upside rebound remains questionable at the moment. Fundamentals in the oil market looks bearish. This Wednesday’s crude oil inventory report showed another week of build-up.

This was also followed up by a report from the U.S. Energy Information Administration (EIA) which lowered the price target for crude oil. WTI crude oil price target for 2020 was lowered to $57 compared to $62 projections made earlier. The outlook remains grim.

In the near term, the current rebound needs to be supported to the upside. Watch for any potential higher lows being formed. Price action will need to clear the 54.00 handle in order to confirm the upside. But at the same time, the long term trend line will come in as dynamic resistance which could keep a lid on the gains.

EURUSD resumes bullish gains


The common currency was seen following through to the upside. This comes after the currency pair initially slipped to a fresh two-year low. Following the breakout above 1.0958 and a prompt retest of this level, the EURUSD is looking to log further gains.

The gains come as the economic data in the U.S. remains mixed. The latest inflation figures showed that headline CPI eased to 1.7% from 1.8% on a year over year basis in September. On a monthly basis, inflation was flat.

Technically, the EURUSD has further room to rally. The next main resistance is seen at 1.1111 – 1.1129. A retest of this level will confirm the resistance level. To the downside, the declines are likely to be limited to the previous support at 1.0958.

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