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Gold, WTI Crude oil and EURUSD - Intra week technical outlook, 12/06/19

Gold extends declines but upside bias intact

Gold 1206

Gold prices were seen extending declines as price was seen at a 5-day low briefly. The declines came about amid easing market sentiment. As risk appetite briefly picked up, gold prices posted a retreat.

The decline to the 1320 level was as expected. However, a firm retest of this level will convince the further upside in price. As long as the 1320 support holds, gold prices will likely aim to push higher. The initial target is the pivot highs near 1340. A breakout above this level will potentially signal further gains.

Alternately, if the 1320 support fails, then gold prices will be looking to post a steeper correction. This will mean that there is a potential for gold to dip to lows of 1285 where the next main support level is pending a retest.

Crude oil remains subdued as bias likely to be lower

WTI 1206

WTI Crude oil prices were trading somewhat mixed. Following the previous week’s sharp declines to lows of 51.00, price was seen reversing the declines. This modest rebound in price was met with a bearish candlestick pattern.

This potentially signals a possible move lower in the near term. A retest of the 50.00 level of support will be crucial. Establishing support at 50.00 will mean that oil prices could end this downside correction and could resume a bullish phase once again.

For the moment, it is likely that the momentum is weak and price could drift sideways before extending declines lower.

Euro extends gains beyond the trend line

EURUSD 1206

The euro currency has managed to capitalize on a weaker USD. The EURUSD currency pair closed above the major falling trend line since October last year. However, following the initial breakout above this trend line, price has remained weak.

A bullish close, preferably above the current pivot highs of 1.1340 could signal further gains to the 1.1400 region. Establishing resistance here could keep the gains initially capped. This could also mean that the EURUSD will drift sideways in the near term.

To the downside,  the declines could be limited in scope with the trend line now likely to act as dynamic support.

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