Gold prices remain weak although upside remains

The precious metal rebounded earlier in the week, following the doji pattern that was formed. However, price action is confined to Wednesday’s range. This indicates that the inside bar will result in a possible breakout in the near term.

For the moment, the bias remains mixed. This comes as the Stochastics oscillator on the daily chart remains somewhat flat. If prices rise above 1556 level, we expect stronger gains to come. This could lead to a possibility of a lower high forming, if not a breakout from the previously established highs.

To the downside, the declines could see gold prices falling to the 1523 level of support. This will mark a correction to the longer term rally that is in place. However, the gains will need to be supported by the fundamentals in order to gain the bearish momentum.

Crude oil prices rebound after weakening

Crude oil prices are recovering a day after the declines are signaling an end to the bearish momentum. Price action remains confined to the trend line, which must be breached for any upside momentum to build up.

The U.S. and China trade deal is the basis for the rebound. Investors hope that the easing tensions will allow room for global growth. This in turn is expected to push oil prices higher. However, a lot will depend on the Middle East tensions between Iran and the United States.

With the Stochastics oscillator currently oversold, we expect some upside momentum to build up. But this will depend on a strong convincing move above the trend line. Else, we expect oil prices to continue drifting lower in the near term. The next lower support is seen at the 56.00 level.

EURUSD gives back gains as bearish momentum builds up

The EURUSD currency pair continues to remain directionless. Price action gave up the gains from earlier this week as the U.S. dollar strengthened. The gains in the USD came as the dollar was shored up following a strong retail sales report.

Price action in the EURUSD shows a possible bearish flag pattern taking shape. This could signal a move to the downside. The minimum target is expected to be around 1.1050 level. But the pivot lows near 1.1111 will need to be breached for this target to be achieved.

Overall, we could expect the EURUSD to remain range bound within the levels of 1.1224 – 1.0958 level.