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Gold, WTI Crude oil and EURUSD - Intra week technical outlook, 15/01/19

Gold turns flat as volatility increases

Gold 150119

Gold prices remained trading flat for the most part this week. This flat trading range has been going on for the past eight daily sessions. As the consolidation continues, gold prices are seen currently breaking out of the rising median line.

With the Ichimoku cloud turning flat with the 1300 round number resistance not being tested just as yet, the prospects for a downside breakout is rising.

However, with the Brexit vote due in a couple of hours, it is likely that spot gold could exhibit erratic moves. The support at 1280 has remained firm so far and only a break down below the 1280 level will clear the way for a downside correction.

There are also risks that gold prices could reverse direction and breakout to the upside. This view comes due to the fact that the 1300 level remains firmly in sight as long as the 1280 support holds the declines. The Stochastics oscillator is also inching lower indicating that momentum could likely build up in the near term. Still, selling gold at the 1300 level would make for a good idea targeting the 1280 and 1250 levels.

Crude oil prices likely to inch lower

WTI 150119

Oil prices were seen losing the momentum as price action weakened since Friday last week. The breakdown from the lower median line indicates that WTI crude oil prices could be pushing for a correction in the near term.

However, the upside resistance at 54.00 still remains a target if the current reversal regains the momentum.

The Stochastics oscillator is seen rising up from the 20 levels currently and price is being supported by the 50.00 round number support which is pending retest. With the Ichimoku cloud showing the strong momentum, it is likely that any declines could be support initially.

Still, watch for price failure to post fresh highs from Jan 11 highs of 53.22. Failure to breakout to new highs could suggest a downside correction likely to take place as a result.

Euro takes a deep dive

EURUSD 150119

The euro currency was seen giving up its gains and extending the declines earlier today as price failed near the support level of 1.1450. The declines are now likely to see the euro to test the minor trend line connecting the lows of 12 Nov 2018 and 14 Dec 2018.

There is also a good chance that the EURUSD could be on its way to invalidate the bullish ascending triangle. The current price action could push the EURUSD to once again settle into the sideways range between 1.1450 and 1.12000.

However, a break of the trend line could mean that the euro currency could be pushing lower and evidently test the 1.1200 level of support. As long as the trend line is not breached, there is scope for the EURUSD to potentially maintain the bullish ascending triangle pattern for the moment.

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