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Gold, WTI Crude oil and EURUSD - Intra week technical outlook, 15/03/19

Gold turns bearish, watch the 1300 level

Gold 1503

Gold prices fell sharply on Thursday breaking past the 1300 level of support. In the near term, price action is expected to potentially retest the 1300 level where resistance could be established. This is also seen from the fact that the Stochastics oscillator has formed a hidden bullish divergence.

A rebound off the current lows could see price attempting to push higher. Failure to break past the 1300 level could spell further declines in the near term. The support level is seen at the 1280 handle with the chart pattern on the daily time frame singling a possible head and shoulders pattern.

If the neckline support at 1280 breaks, then gold prices could be seen extending the declines down to 1240 level marking the much awaiting pending retest of the support level.

Crude oil extends gains, but bearish outlook remains

WTI 1503

WTI crude oil prices were seen extending the gains on Thursday as price rose to highs of 58.65. While the overall price action remains bullish the momentum is showing signs of exhaustion especially after crude oil prices have formed a strong consolidation ahead of the breakout.

Price action is seen currently hugging the 58 level of resistance for the moment. But the daily time frame signals a potential bearish divergence which could see prices correcting to 52.50 level in the medium term.

The sharp, near parabolic ascent is likely to see oil prices snapping back to the average price. Watch the short term trend line which is likely to be breached in the near term. If prices break down blower, we anticipate a possible decline that could see prices extending the declines to the 56 handle followed by a move to the 52.50 level.

EURUSD posting a correction


The common currency was seen extending the declines following the previous session’s rally that sent the price of the euro surging to highs of 1.1388, just shy of the 1.1400 handle. The reversal in price action was swift as the EURUSD fell back to the support area of 1.1312 - 1.1282.

The overall price action in the EURUSD remains choppy for the moment and the rest of the support level indicates prices continuing to move in a sideways range. If this support breaks, the EURUSD could slip further and possibly retest the trend line which is currently acting as a dynamic support level.

The overall outlook for the EURUSD remains that where prices are currently forming a bottoming pattern. If the previous lows are not breached, the EURUSD currency pair could be seen preparing for a move to the upside. The main resistance level of 1.1450 remains a key level of interest in the near term.

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