Gold, WTI Crude oil and EURUSD - Intra week technical outlook, 14/02/20

Is gold resuming its uptrend?


The price action in gold reversed losses and now looks set to maintain a bullish momentum. However, price action remains somewhat mixed. For the moment, the bullish sentiment is on account of falling risk appetite. Investors are cautious and reacting every piece of news in regards to the Coronavirus outbreak.

Technically, gold needs to break past the current resistance level of 1572.50. This will confirm that there could be further upside in prices. However, XAUUSD is trading within the larger triangle pattern, which suggests consolidation. The longer term target in gold is upwards of 1600. For this to occur, price needs to break out strongly.

There is scope for prices to slip lower. This will be confirmed if the precious metal will give back some of the gains at the resistance level. It could then see a shift in the momentum to the downside.

Crude oil struggles near the trend line

WTI 1402

Crude oil prices are struggling near the trend line amid a slight bullish gain in the momentum. The gains come as OPEC continues to maintain oil production at the current levels into June this year. Furthermore, the weekly crude oil inventory report from the EIA was also negative for the commodity.

However, oil prices are ignoring the fundamentals. Unless prices break past the falling trend line, we expect the bearish momentum to continue. But there is scope for price action to consolidate near the current lows. As a result, oil prices could stay range bound within 52.00 and 50.00 region.

The Stochastics currently remain well anchored in the oversold levels. Thus, unless we see a breakout from this range, we do not next to see any directional trend being established. There is also the risk that oil prices could slip past the current lows below 50.00.

Euro slips into new bearish territory


The euro currency is seen sliding into new bearish territory as price action fell to the lows, last seen since 2017. The declines come as the USD is well supported by the fundamental and the global narrative. On the other hand, the euro currency continues to be plagued by dismal data.

Right now, price action is testing a key level last seen since 2017. Therefore, a possibility of a rebound could be on the horizon. However, with the current bearish trend, there is no ruling out for further declines.

In the near term, the price level near 1.0958 will be critical. If price action rallies, this will be the key level that the EURUSD will face. Thus, despite a rebound, we do not expect to see a change of trend taking place for the moment.

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