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Gold, WTI Crude oil and EURUSD - Intra week technical outlook, 17/01/19 

Gold's consolidation indicates a big breakout

GOLD 170119

Gold prices continued to maintain its sideways range. However, quite interestingly, the price action's range has been trending smaller. This is indicative of a potential breakout move that is likely to occur.

Given that gold prices are perched above the 1280 support which has been steady for the moment, it is likely that the breakout could occur in either direction. To the upside, the consolidation at the 1295 region has resulted in a potential ascending triangle pattern being formed. A breakout above this level could push gold prices to at least 1310.

Alternately, to the downside, failure to post any breakout to the upside could result in prices testing the 1280 support once again. If this support breaks, we could expect the downside to increase towards atleast 1250 at the very least with a potential for further declines down to 1230. However, with prices staying flat at the moment, it is best to wait for price to lead the way.

Crude oil is moving into a consolidation

WTI 170119

Crude oil prices have been trending sideways after posting an initial high around the 53 handle. Temporary support has been established near the 50.50 level while price has been making lower highs. This could potentially signal a breakout to the upside.

At the very least, we expect crude oil prices to push through to the 53.00 handle. Retesting this level could potentially confirm the exhaustion to the rally. Above 53.00 level, oil prices could potentially test the next main resistance at 54.00.

To the downside, the support at the 50.00 level is likely to come in strongly. This could make oil prices to remain supported above this level. A break below the 50 handle could push oil prices down to the 46.00 handle at the very least.

Euro likely to see 1.145 turning to resistance

EURUSD 170119

The euro currency continues to trend lower. The breakdown below the support at 1.1450 could see this level being tested again. This could potentially turn the price level into resistance and could keep price action subdued.

The minor rising trend line is yet to be tested, but a break below this trend line could push the euro to test further lows.

The steep decline in the currency has sent it into a descending price channel. A breakout from this price channel could potentially post a correction to the upside targeting 1.145 where resistance is likely to be established.

As long as 1.1450 remains we expect the euro to be trading subdued. With next week's ECB meeting coming up, price action could remain flat.

Gold's consolidation indicates a big breakout

Gold prices continued to maintain its sideways range. However, quite interestingly, the price action's range has been trending smaller. This is indicative of a potential breakout move that is likely to occur.

Given that gold prices are perched above the 1280 support which has been steady for the moment, it is likely that the breakout could occur in either direction.

To the upside, the consolidation at the 1295 region has resulted in a potential ascending triangle pattern being formed. A breakout above this level could push gold prices to at least 1310.

Alternately, to the downside, failure to post any breakout to the upside could result in prices testing the 1280 support once again. If this support breaks, we could expect the downside to increase towards atleast 1250 at the very least with a potential for further declines down to 1230.

However, with prices staying flat at the moment, it is best to wait for price to lead the way.

 

Crude oil is moving into a consolidation

Crude oil prices have been trending sideways after posting an initial high around the 53 handle. Temporary support has been established near the 50.50 level while price has been making lower highs. This could potentially signal a breakout to the upside.

At the very least, we expect crude oil prices to push through to the 53.00 handle. Retesting this level could potentially confirm the exhaustion to the rally. Above 53.00 level, oil prices could potentially test the next main resistance at 54.00.

To the downside, the support at the 50.00 level is likely to come in strongly. This could make oil prices to remain supported above this level. A break below the 50 handle could push oil prices down to the 46.00 handle at the very least.

 

Euro likely to see 1.145 turning to resistance

The euro currency continues to trend lower. The breakdown below the support at 1.1450 could see this level being tested again. This could potentially turn the price level into resistance and could keep price action subdued.

The minor rising trend line is yet to be tested, but a break below this trend line could push the euro to test further lows.

The steep decline in the currency has sent it into a descending price channel. A breakout from this price channel could potentially post a correction to the upside targeting 1.145 where resistance is likely to be established.

As long as 1.1450 remains we expect the euro to be trading subdued. With next week's ECB meeting coming up, price action could remain flat.

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