ADVERTISEMENT



Gold, WTI Crude oil and EURUSD - Intra week technical outlook, 15/05/19

Gold likely to shift bias to the upside

Gold 1505

The recent gains in gold prices have pushed prices to test the 1300 mark. This meant that gold prices broke past the 1285 resistance level. The price action indicates that gold could possibly be shifting its bias to the upside.

However, in the near term, gold is likely to retreat back to the 1285 handle. This would mark a retest of this level as support. If gold prices are support by the 1285 region, then we anticipate that the next leg in the direction in gold prices will be to the upside.

Unless there is a breakdown below the 1285 handle, we expect gold to potentially prepare for further gains. In the near term, any short term rebound in gold prices could see a push to the downside as the hidden bearish divergence remains in place and keeps gold pressured to test the 1285 region.

Crude oil remains range bound

WTI 1505

WTI Crude oil prices posted some modest gains on Tuesday. This came amid the news about the attack on some more Saudi oil tankers in the middle east. The fundamentals continue to support oil price in the near term.

From a price action perspective, oil has reversed some of the losses from Monday this week. The resistance level near the 63 handle could potentially mean another likely retest to this point. Failure to rebound could lead to oil prices extending declines even further.

A close below the previous low of 60.20 could signal further declines. The lower support in Crude oil remains at the 57.50 handle which could be tested in the near term. However, watch for oil prices to remain trading flat.

Euro posts declines but we could expect a rebound

EURUSD 1505

The euro currency extended declines for the second day in a row on Tuesday. However, price action has stalled near the lower end of the support at 1.1200. In the short term, we could see the euro currency attempting to post a modest rebound off this level.

As long as the rebound is met by the resistance level near 1.1225, we expect the overall short term trend to be biased to the downside. A close below 1.1200 could push the EURUSD down to trade within the previous range.

This also raises the scope for the euro currency to possibly extend the declines even further. The lower support at 1.1150 remains the next key level of interest in the short term. Alternately, if price manages to breakout past 1.1225, then we anticipate further gains to push the price higher.

Read 513 times

ADVERTISEMENT

ADVERTISEMENT

ADVERTISEMENT

ADVERTISEMENT

ADVERTISEMENT

Newsletter Subscription Form

You are more than welcome to subscribe to our Newsletter and be among the first who get to hear about regular updates on forex and other related news, brokers' updates, websites' changes and more!
I agree with the Terms and conditions and the Privacy policy
Thank you!