Gold, WTI Crude oil and EURUSD - Intra week technical outlook, 17/04/19

Gold extends losses after breaking support

Gold 1704

The precious metal was down over 1% on Tuesday as gold prices finally broke past the 1285 handle. The decline in the gold prices comes after the support level proved to be too tough to breach in previous attempts. However, the bearish declines are still not out of the blue as there is a risk of a pullback above the 1285 handle.

A weekly close below 1285 is required in order to confirm the downside. Still, there are risks that gold prices could pullback to the 1285 handle. However, if resistance is formed on this pullback, then we could expect the bearish trend to be the dominant trend.

The downside target for gold comes in at 1250 followed by a move to 1240 levels. As long as these levels hold up, we can expect the next leg in gold prices to move to the upside. But for the moment, watch gold as it drifts lower.

Crude oil turns flat at the top

WTI 1704

Oil prices have moved into a holding pattern after price action posted strong gains during the previous weeks. The resistance level of 66 – 65 remains within sight. This could put at risk any weak positions near the current highs. Oil prices have been seen to be drifting flat marking a temporary pause to the rally.

In the near term, watch out for the 63.80 region. A daily close above this level and a follow through could mean that the bullish momentum would resume. This could potentially push oil prices toward the 65 – 66 resistance level that is of interest.

To the downside, if prices break out lower, then we see the support coming at the 60 – 60.30 region. A rebound off this level could possibly keep the bias to the upside.

Euro turns bearish at 1.1300


The common currency opened the week with gains but price action was seen weakening on Tuesday after price hit the 1.1300 level. The bearish close on the day could see the euro extending declines further. However, the declines could be limited in nature.

The support level near 1.1250 – 1.1200 is likely to be the target zone if the bearish momentum continues. But we do not expect to see the EURUSD extending declines below this level. In the exceptional case that the euro slips lower, we can anticipate further declines that could push the common currency to new lows.

In the near term, the EURUSD currency pair is expected to maintain its sideways range drifting within the 1.1400 and 1.1200 corridor that has held firm over the past quarter.

Read 606 times






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!