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Gold, WTI Crude oil and EURUSD - Intra week technical outlook, 14/08/20

Gold looking to rebound after strong declines earlier this week

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The precious metal is posting a modest rebound after prices fell sharply on Monday and Tuesday this week. Gold prices retreated from all-time highs as prices crashed below the 2000 level. The precious metal erased gains made in the past few weeks in just two trading sessions. Most of the declines were due to rising optimism about a vaccine for the Covid-19 virus.

The declines in gold however saw price action touching down to the 1900 mark. However, the declines were met with strong rejection leading to a doji candlestick into Wednesday's close. Price action is currently bullish and if it closes this way, we might get to see further gains in the near term.

But for the precious metal to resume its bullish rally, it will need to rise above the all-time highs, just above the 2050 level. The price level near 1950 is likely to offer some temporary resistance. A reversal near this level could signal a possible move back to the 1900 and a potentially deeper correction.

Crude oil trades flat on IEA outlook

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Crude oil prices are trading flat after the US trading session opened. A report from the International Energy Agency showed that oil demand could be lower this year than initially expected. The IEA cut the oil forecasts largely on account of reduced air travel. The report comes after on Wednesday, the OPEC said that world oil demand would fall by over 9 million bpd this year.

Price action in the crude oil is however quite muted. While prices are now trading above the 42.00 level, there is a risk of prices pulling back. Also, the recent pace of gains are slowing. The key level for oil prices comes near the 45.00 handle. This level briefly offered support during the precious declines.

As a result, oil prices could hit resistance near this price point. Above the 45.00 level, the next main resistance is near the 50.00 handle. All the time, price action looks to be supported by the 200-day moving average. The consolidation is also likely to continue along these lines.

Euro looking to recover from the slump

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The common currency is looking bullish and possibly on track to close with a two-day winning streak. The euro currency fell sharply earlier this week led by a strong US dollar. However, following the declines, prices managed to recover. As a result, the EURUSD is looking bullish once again.

But for the moment, the common currency is not out of the woods yet. Price action will need to clear the 1.1900 handle to confirm the upside. This would mean that the EURUSD will rise to a fresh two-year high and even likely move higher to a new three-year high.

The next main target for the euro is the 1.2000 handle. However, a lot depends on how price action moves from here. To the downside, minor support is seen near the 1.1700 handle at the moment. Therefore, any declines can be expected only if the EURUSD breaks down lower.

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