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Gold, WTI Crude oil and EURUSD - Intra week technical outlook, 14/12/18

Gold - Bias balanced as price turns flat

Gold 141218

Gold prices did not move much over the past few days as price action trades flat within the corridor of 1248 and 1242. A breakout from this level is needed and this could establish the direction in the next leg of the trend. The bias is equally balanced. An upside breakout will validate the bullish flag pattern. Therefore, a strong close above 1248 will trigger further gains that could push gold prices to as high as 1260. Alternately, to the downside, a close below 1242 will no doubt invalidate the bullish flag pattern and put gold on track to firmly establish the support at 1228 which is pending a retest. As a result, watch gold for a potential move in either direction.

WTI - Stay on the sidelines

WTI 141218

WTI Crude oil prices are nearing a one full month of trading sideways within the range of 54 and 50. Only a breakout from this level will confirm which way oil prices will be moving. We expect that the bias is to the upside. However, oil prices need to breakout above $54.00 level convincingly to set up the upside bias. Despite an upside breakout, there is a risk that WTI crude oil prices could once again slip below the $54.00 handle. Given the volatility in crude oil prices, it is best to stay on the sidelines for the moment. A breakout above $54.00 will trigger further gains to the $58.00 handle initially followed by the final target of $68.00

EURUSD - Consolidation is building up

EURUSD 141218

The EURUSD currency pair remains the most volatile whilst trading flat. While price action continues to consolidate within the triangle pattern, there is no decisive move yet. Furthermore, price managed to breakout from the initial falling trend line and is seen currently retesting the breakout level. This could indicate that the EURUSD could move to the upside. There is a horizontal resistance formed at 1.1450 which could cap the gains. However, a breakout above this level will see the EURUSD testing the second falling trend line. This could once again keep the euro subdued. To the downside, we keep watching the 1.1200 level as price could possibly retest this level in the near term.

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