Gold, WTI Crude oil and EURUSD - Intra week technical outlook, 18/11/20

Gold trades flat for the second consecutive day

The precious metal is trading flat for the second consecutive day. Price action has no impetus for any clear direction at this point. While gold prices initially fell on the news of the Coronavirus vaccine, this quickly faded as the U.S. continues to record new number of cases.

As a result, gold prices are trading mixed within the 1900 and 1850 levels for the moment. A breakout from this range could signal a possible move. However, it looks like the 50-day moving average is keeping a lid on the gains.

This could mean that the precious metal is likely to break down lower. The close below the 1850 handle could signal potential losses. The next key support area is at the 1800 level where the 200-day moving average also resides.

Oil prices steady as OPEC+ plans for 2021

Crude oil prices are trading mixed with the initial euphoria from the COVID-19 related vaccine fading. Investors also did not react much to the news about Saudi Arabia making plans for tighter oil output for 2021.

For the moment, the oil markets continue to remain in the longer term sideways range. The price action near the 42.00 level is proving hard to breakout. This could mean that price action will continue to trade flat in the near term.

To the downside, the previous support near 36.15 will continue to hold up as support. To the upside, the 42.00 level of resistance will remain as a key level in place. With the fundamentals also not quite bullish, oil markets have further room to consolidate.

EURUSD pulls back after approaching 1.1900

The euro currency is posting gains for three straight days, but the pace of gains are slowing. Price action continued to rise on Tuesday only to retreat after inching close to the 1.1900 level of resistance. The declines come as the U.S. dollar continues to remain somewhat volatile.

The bias is to the upside for the moment, but the longer term trend remains flat. The euro currency has failed to breakout past the 1.1900 level convincingly. Another attempt to breakout is also unlikely to be successful at this point.

This leaves room for the EURUSD to the downside. The lower support area near 1.1600 is the likely target for the moment. The 50-day moving average is likely to act as a dynamic support for the near term, which comes in at the 1.1764 level for the moment. Watch the Stochastics oscillator which is hinting at a possible move lower for the common currency.