Gold, WTI Crude oil and EURUSD - Intra week technical outlook, 20/03/19

Gold trades mixed

Gold prices invalidated the bearish flag pattern and continued to nudge higher. Price action cleared the 1300 level of resistance once again, but the momentum looks somewhat weak at the moment.

Currently, gold is seen forming a double top pattern near the 1310 level. If this level is breached, we could expect gold prices to test the 1320 level in the near term, which would mark the measured move to the upside and also coincide with the 1320 resistance level that is pending a retest in the medium term.

For the moment, price action remains mixed with the risks balanced. Therefore, gold prices could be seen moving in either direction in the near term, unless there is a clear break down below the 1295 handle.

Oil prices hold steady near 59

Crude oil prices gained some bullish momentum over the week after a report from OPEC showed that the oil producing nations were confirming to the production cuts that was agreed at the recent OPEC meeting few months ago.

This pushed WTI crude oil prices to test the highs near 59.54. However, the momentum remains somewhat weak near the top. Price action is seen forming a bearish candlestick pattern near the minor rising trend line.

A break down from this trend line could potentially extend oil price declines to 58.00 handle in the near term. For the moment, oil prices remain biased to the upside as long as the support level at 58.00 holds out.

Euro maintains the bullish momentum

The EURUSD currency pair is seen extending the gains in a steady fashion. Price action has shown a quick recovery after the euro fell to lows following the ECB meeting few weeks ago. With price action suggesting that the support area of 1.1312 – 1.1282 holding out for the moment, the bias to the upside grows stronger.

In the near term, the euro currency could be seen initially testing the previous highs near 1.1420 level. However, the trend line is likely to act as dynamic resistance in the near term. This could come in around the 1.1380 region. However, the declines off the resistance could be limited, unless the euro currency extends the declines further to retest the support level.

Overall, the EURUSD remains range bound and this will continue unless the 1.1400 level is broken with strong momentum.