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Gold, WTI Crude oil and EURUSD - Intra week technical outlook, 15/04/20

Gold prices maintains gains for the third consecutive session

XAUUSD 1504

The precious metal is posting strong gains, rising for the third consecutive session. In the past three days, price action is up over 5.5% at the time of writing. Gold prices briefly rose to the highs 1740 before pulling back slightly. The main support level is seen at the 1680 handle where prices could pull back in the near term.

In the near term, there is a possibility for prices to decline to the 1680 level. As long as this level holds, we expect a reversal. This puts the upside toward the 1800 level for gold prices. Price action needs to however break past the current highs that are forming.

But in the event that the 1680 handle breaks then we expect to see another leg of correction to the downside. The declines could stall near the 1640 handle where support could hold. In the event of a breakdown lower, then gold prices could see a move down to the 1522 level.

Crude oil resumes declines again

WTI 1504

Oil prices are down over 5.0%. This comes a day after OPEC+ which includes Russia and Saudi Arabia agreed to a production cut. Both leading oil producers agreed to cut oil output by close to 10 million barrels per day. However, oil investors are shrugging aside the data leading to a decline in oil prices.

For the moment, WTI crude oil is trading within the range of 28 and 20.00 levels. Therefore, there is still some prospect for a bottom to form. However, in the event of a breakdown below the 22.00 level, we expect fresh lows to form.

In the meantime, watch the Stochastics oscillator which is likely to form a bullish divergence. This could form a possible upside bias in the medium term. Price action will once again retest the 28.00 level. Thus, a breakout above this level will only confirm further upside.

EURUSD maintains a steady gain

EURUSD 1504

The euro currency is posting modest gains after slipping to the lower end of the range few sessions ago. However, price action remains a bit erratic as it depends on the volatility and strength of the U.S. dollar. For the moment, the gains in the EURUSD are driven by some weakness in the USD.

For the moment, we do not expect to see much gains or declines. The currency pair will hold the sideways range between the 1.1000 and 1.0784 levels. Only a strong breakout from one of these levels will confirm further gains or declines.

To the downside, the trend line will continue to hold the declines. This could give some pressure to the upside. In the event that the EURUSD breaks out above 1.1000 level, then the next main resistance will be at the pivot high of 1.1141.

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