Gold, WTI Crude oil and EURUSD - Intra week technical outlook, 20/11/19

Gold prices attempt to retrace losses


The precious metal was seen recovering from last week’s declines. Price action in gold has been steadily rising since Monday. This comes as investor appetite for risk held back amid no new reports on the U.S. and China trade talks.

From a technical perspective, the current rebound in the precious metal could see prices attempting to reach the resistance level of 1497. This could signal a retest of the resistance level. If we see a reversal here, then there is a good chance for gold prices to resume the decline.

The downside target at 1440 remains in play. However, there is scope for gold prices to reverse gains mid-way. Keep an eye on the 1480 region which could prove to be a minor resistance level that could keep a lid on the gains. With the economic calendar relatively weak, gold prices are likely to remain trading on the backfoot.

Crude oil prices fall for the second consecutive day

WTI 2011

Crude oil prices are declining for the second day this week. This comes after last week’s attempt to rally. The reversal comes despite the U.S. dollar trading weaker for the most part. Oil traders will be looking later this week to the weekly inventory report.

Technically, the reversal marks the head and shoulders pattern that we are watching. If the current bearish momentum continues, then oil prices could be heading lower. The initial support level near 52.00 will be closely watched. A breakdown below this handle will trigger the bearish head and shoulders pattern.

The downside target is towards $42.00 if price action respects the reversal pattern. Recent data from the oil markets show that OPEC will continue with its production cuts currently in place. This could signal no major shift in the oil markets.

Euro continues to maintain gains


The euro currency is trading stronger against the greenback. The currency pair has been posting gains for five consecutive sessions so far. If the current momentum continues, then the EURUSD could be seen heading toward the 1.1111 region where resistance is likely to form.

The gains come mostly on the back of a weaker U.S. dollar. The greenback has been weaker following stale reports on the trade talks. With investor sentiment slightly taking on lower risk, other currencies have managed to post some modest gains.

The current rally will however stall near the resistance level of 1.1111 level. A reversal off this level could however keep the currency pair back to its sideways range trading. The lower support near 1.0958 will likely hold the declines in the short term.

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