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Gold, WTI Crude oil and EURUSD - Intra week technical outlook, 18/12/19

Gold prices back at resistance

XAUUSD 1812

The precious metal was posting some modest gains since the start of the week. The gains come despite the positive trade news. But overall, price action remains flat as the holiday season kicks in.

With gold prices back within the range of 1460 and 1480, price action remains mixed. But the continued consolidation within these levels indicate a possible breakout in the near term. The bias also remains mixed currently with the Stochastics oscillator holding steady.

A breakout above the 1480 resistance will trigger further gains. The next main resistance is at the 1500 level. A retest of this level will potentially keep the bearish bias intact. To the downside, a close below 1460 will signal a move to the 1440 handle. There is a strong possibility that gold prices will likely find support at this level.

Crude oil maintains bullish momentum

WTI 1812

Crude oil prices were seen holding on to the bullish momentum. Price action is seen trading near the resistance level of 60.64. However, we notice the resistance area spanning from 60.64 through 63.00.

A breakout above this resistance area will likely confirm further direction in the currency pair, with the potential for the uptrend to form. The weekly crude oil inventories report will be coming out later on Wednesday. While this could bring some volatility, it will be hard to predict the direction of the momentum.

Since June this year, the commodity has failed to break past the mentioned resistance level. Therefore, we expect to see a breakout from this level only on some fundamental news.

EURUSD caught within a sideways range

EURUSD 1812

The common currency continues to remain flat despite making some short term gains. EURUSD has settled within the range of 1.1200 and 1.1111 levels. A breakout from this range will likely establish some direction in the currency pair.

There is scope for a move to the upside. This is likely if the resistance level gives way. Still, the euro currency will remain within the long term range. Above 1.1200 level, the common currency will encounter the resistance level at 1.1350 which was last tested in April this year.

Economic data over the week is sparse. With most of the major events already gone by, we expect the sideways price action to continue into the Holiday season. However, there is a risk from the U.S. and China trade talks which is yet to be ratified. This could possibly be the catalyst for the currency pair in the near term.

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