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Gold, WTI Crude oil and EURUSD - Intra week technical outlook, 13/01/21

Gold price decline stalls

XAUUSD 1301

The precious metal is trading mixed for two consecutive days so far following last Friday’s strong sell off. We continue to watch the unfolding cup and handle pattern which still remains valid. However, if there is further declines in the gold prices then we could expect the Cup and handle pattern to be invalidated this will further shift the focus to the town side in the precious metal

For the moment, the downside support you see near the 200 day moving average. If there's 200 day moving average can act as dynamic support, then gold prices could be stalling their declines. However, if the precious metal loses the support of the 200 day moving average then we could expect to see the Cup and handle pattern being invalidated.

This decline will also then open the way for gold prices to test the 1750 level support next. For the moment, watch how the stochastics oscillator is behaving. For the moment, the indicator is pushing closer to the oversold levels. Therefore, this could see a short term bounce appearing near the 200 day moving average.

WTI crude oil prices reach the target

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the current pace of gains in the crude oil market continues as prices inch closer to the key level of 53.00. The games come following the strong breakout from the ascending triangle that has formed near the top end of the rally. However, the current pace of gains might stop following this batch of rally.

The stochastics oscillator is quite overbought at the moment and therefore this could potentially suggest that prices might be in for a correction to the downside. Therefore, we could expect oil prices to retest the resistance level near the ascending triangle pattern at 49.30.

On the other hand, if the current pace of gains continues then we could see oil prices potentially testing the 55.00 handle. This will mark a strong pace of gain in the oil markets. However, considering the fact that there have been no major corrections since the bullish crossover from late December, we could expect to see some profit taking which could result in oil prices pulling back.

EURUSD attempts to pullback following a three-day decline

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The euro currency is currently posting gains on Tuesday following a sharp stretch off declines in the previous three sessions. The gains in the common currency come largely as the US dollar has been taking a breather following a strong rebound over the past three days.

The current rebound in the common currency comes on the back of the stochastics oscillator also moving to the upside. As a result, if there is a continuation in this pattern we might be able to see the euro currency recovering from the previous slump.

However, for the euro to continue the gains it will need to rise strongly above the 1.2200 level. A strong close above this level will open the way for the euro to once again retest the previously established two and half year highs. Given the current setup, the overall bias in the EURUSD remains mixed for the moment.

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