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Gold, WTI Crude oil and EURUSD - Intra week technical outlook, 14/06/19

Gold on track to post second day of consecutive gains

Gold 1406

Gold prices recovered comfortably from the slump earlier in the week. Price is well on its way to post a second consecutive day of gains as price approaches the previous highs. A close above the pivot highs of 1340 is required to confirm further upside.

There is however a risk of a downside decline. With the support level at 1320 being tested briefly, there is scope for gold to drop to this level once again. A firm retest of the 1320 level will potentially confirm the support at this point.

However, in the event that gold prices fail to form support near the 1320 handle, we anticipate the declines to extend the correction lower. In this scenario, gold prices could decline to the next main support at 1285.

Crude oil rebounds off the lows

WTI 1406

WTI Crude oil prices posted a strong rebound as price reversed losses strongly, fully recovering from the drop from the day before. The rebound in oil prices came as news of a gulf tanker catching fire.

However, it is left to be seen on how much price can rebound. The momentum looks bearish with a test to the 50.00 handle still within sight. To the upside, WTI crude oil will need to breakout above the pivot highs of 54.00 in order to confirm the upside.

Still, a higher low need to be formed in order to confirm the change of trend. For the moment however, the bias remains to the downside in Crude oil.

Euro slips, extending declines for the second day

EURUSD 1406

The euro currency was seen weakening as price fell for the second consecutive day. The declines in the EURUSD comes as price failed to break past the previous highs posted. The reversal as a result has pushed the EURUSD back inside the trend line.

With the falling trend line failing to act as support, further declines could push the EURUSD lower to test the support at 1.1224 – 1.1200 level. However, for the most part, we expect the EURUSD currency pair to continue drifting sideways.

The new range of 1.1350 – 1.1250 is likely to be maintained in the near term. To the upside, the main resistance level at 1.1400 will be key. A breakout above this level could trigger further gains in the currency pair.

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