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Gold, WTI Crude oil and EURUSD - Intra week technical outlook, 17/06/20

Gold prices remain in a holding pattern


The precious metal has barely moved in the past few sessions. This comes even as equity markets have begun to post strong gains. The precious metal has been stuck in a range for the past few sessions and this is likely to continue. The flat trading also partly reflects a bit of investor uncertainty about the economic growth.

Gold prices are trading near the upper range of 1730.90. A breakout above this level could potentially pave the way toward the elusive 1800 level. However, there is scope for prices to pullback.

This will push gold prices back to the lower end of the range. But at the moment, we do not see any scope for price action to break down lower. Below 1683.40, the next main lower target is at the 1643 level which will become the next main point of support in prices.

WTI Crude oil prices rise as market sentiment improves

WTI 1706

Crude oil prices are up over 3% on Tuesday. The gains come as the market sentiment is improving. Underlying economic data is also showing evidence that consumer demand is lifting back slowly after two months of total shutdown. This change is boosting oil prices as it comes as OPEC producers are cutting down on supply. WTI Crude oil prices as a result are poised for some bullish gains.

From a technical standpoint, oil prices are rising for three consecutive days. Therefore, in the near term, we could see some kind of a pullback. However, if prices breakout above the previous highs near 40.00, then we expect a move to 42.00 level.

We expect oil prices to retreat after initially testing this level. But given the momentum, there is scope for oil prices to also breakout strongly above this level. It will potentially set the upside target to 65.00 in the medium to long term basis.

Euro gives back gains as 1.1400 proves hard to break


The euro currency is trading a bit volatile as price action on Tuesday is seen giving up some of the gains from Monday. The declines come as the US dollar weakened but only strengthened the next day. For now, the consolidation near the highs is proving hard for the euro to continue its gains.

The main support level to watch is at the 1.125 level. If this level gives up, then the EURUSD might be pushing lower. We expect a correction to take place. But this correction is likely to send the euro down to the 1.1147 level where the next major support level exists.

To the upside, the resistance level of 1.1400 is clear. Only a clean breakout above this level will confirm the move to the upside. However, given the way prices have failed in the past, we expect the upside to be limited for now.

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