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

Gold attempts to correct the declines

Gold 1904

After posting strong losses for the most part of the week, gold prices were showing signs of a reversal near the fresh yearly lows. Prices slipped earlier this week to a yearly low of 1272 before recovering those losses modestly. The reversal in the precious metal comes at a time when economic data from the U.S. is starting to show a revival in growth. This is easing concerns about prolonged weaker growth in the world's largest economy.

The 4-hour chart shows the price consolidating, which could potentially lead to a rebound in prices. The breached support level near 1285 remains the first upside target for gold, followed by a move to 1290 handle.

Alternately, if the momentum for the upside push fails, then gold prices will likely maintain the downtrend and continue to push lower.

Crude oil is trading sideways

WTI 1904

Oil prices have been trading sideways for the most part this week. Prices flattened after reaching the highs of 64. The current sideways range could signal either a change in the direction of the trend or a possible continuation.

The direction of the trend will largely depend on the breakout. To the upside a close above 64 could see oil prices continuing the upside trend. This will push prices closer to the resistance area of 65 – 66 region. The flat price action continues despite news about Saudi Arabia's oil output falling in February and supply concerns as the U.S. put Venezuela on its sanctions list. Earlier in the week, the crude oil inventories report showed that U.S. stockpiles fell.

To the downside, if oil prices slip below 63, we expect to see a move to the downside. The immediate downside target will be towards the 62 handle, where there is a high chance of prices holding on to the support.

EURUSD extends losses


The euro currency fell sharply on Thursday as prices settled near the weekly lows. Prices are seen falling back to the 1.1225 level of support in the near term. This marks another retest to the support area which has managed to hold the declines further. The common currency posted strong declines after the flash PMI's on Thursday showed that economic growth continued to remain soft in the region. Manfuacturing activity is strongly in the contraction area with the index falling below the 50-level.

In the event that the euro currency slips below the support area, then next level of interest will be the 1.1200 handle. Given that this is a psychological level, EURUSD could be seen holding on to the support for a short while.

The bias will remain to the upside but overall price action in the EURUSD remains range bound within the 1.1400 and 1.1200 levels.

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