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Gold, WTI Crude oil and EURUSD - Intra week technical outlook, 15/11/19

Gold posts a reversal


Gold prices were seen posting a strong reversal following the doji candlestick pattern few days before. The reversal comes as the investor euphoria on the U.S. and China trade talks hit a stalemate. Recently, President Trump’s speech did not see any references to the China trade talks progress.

The fact that the Washington administration is also not rolling back the tariffs from earlier this year soured the sentiment. The current rebound coincides with the fundamentals. If the gains continue, then gold prices could be seen rising back to the price level of 1497 where resistance is most likely to be established.

In the near term, price action could test the 1480 handle. If resistance is formed here, we expect gold to slip back to maintain a sideways range. The 1480 and 1440 region is ideal for some consolidation in the near term. A breakout from this range however will set the trend direction in the near term.

Oil prices slip on bearish inventory report

WTI 1511

Crude oil prices were reversing gains from earlier this week. The declines come amid a bearish report from the U.S. Energy Information Administration or the EIA. The weekly crude oil inventory report saw that there was an increase in oil inventory.

The report indicated that commercial stockpiles rose 2.2 million barrels for the week ending November 8th. This continues the trend about stockpiles rising steadily. The increase in the inventory report beats estimates of a 1.6 million increase that was forecast by analysts.

The current declines however need to see a follow through lower. The support area at 52.00 will be critical in the near term. If prices continue to extend the declines, then the head and shoulders pattern could come into play. This will put the bias to the downside for oil prices in the medium term.

EURUSD attempts a rebound


The common currency is attempting to post a rebound following consecutive session of declines. The reversal comes as the EURUSD posted a doji on Wednesday and follow through with some bullish gains on Thursday. If the bullish momentum is maintained, then we expect further gains in the near term.

The EURUSD has been largely trading flat in the longer term. The trend remains quiet and price action has been trading within the 1.1400 and 1.0900 region for the most part this year. The current reversal will of course see the EURUSD rising to 1.1111 level where resistance will be tested.

A reversal off this level will of course keep price action range bound. The current support a 1.0958 will of course be tested once again. But it is unlikely to expect a sharp breakdown below this level.

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