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

Gold posts sharp declines from 1950

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The precious metal fell sharply on Monday after news that Pfizer's COVID-19 vaccine had a 90% success rate. This led to a strong risk on rally in the markets with gold prices losing their shine. As a result, the precious metal which was trading near the 1950 levels earlier in the week saw a sharp decline.

Overall, the precious metal lost close to $10 on a single day, marking the biggest one day decline since August this year. Price action however found support near the 1850 level which saw the precious metal being rejected firmly. For the moment, gold prices are posting a modest rebound.

However, this could result in prices trading flat between the 1900 and 1850 levels in the near term. This sideways range could lead to a breakout eventually. For the moment, the bias remains mixed. However, the Stochastics oscillator is pointing lower suggesting that there is further room for prices to fall.

Oil prices gain on COVID-19 vaccine news

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The oil markets have been bearing the brunt of the pandemic. However, following the announcement from the pharmaceutical companies on Monday, the commodity posting strong gains. The gains come on hopes that the vaccine will help most of the global economies to return back to normal. Oil prices rose sharply on Monday as a result, but price action was stuck once again near the moving averages.

For the moment, oil prices are posting gains for the second consecutive day following the pullback from Monday. But the confluence of the moving averages and the horizontal line near the 42.00 handle could mean that further gains might be unlikely for the moment. Another strong catalyst is needed to help the commodity to break out higher.

As a result, we expect that the oil markets will once again pullback after testing this strong resistance area. The Stochastics indicator is signaling further room to the upside. But the overall trend remains flat until there is a strong breakout.

EURUSD fails near the 1.1900 handle

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The common currency managed to post gains on the backdrop of the rising risk sentiment. However, just as price action hit the 1.1900 handle, the common currency gave back the gains rather quickly. As a result, this has led to a bearish candlestick pattern emerging near the highs.

For the moment, price action is rather mixed. However, the Stochastics oscillator is pointing to further declines. If we see a follow through in price in the near term, then this could confirm a move to the 1.1600 handle once again.

For the moment, the euro currency is supported near the 50-day moving average and any declines could see the 1.1750 level being tested in the near term. Only a close below this level could suggest further declines back to the 1.1600 level.

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