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Gold, WTI Crude oil and EURUSD - Intra week technical outlook, 20/12/19

Gold prices consolidating into an ascending triangle


The precious metal is seen trading flat albeit the consolidation is turning into an ascending triangle pattern. The resistance level is seen holding up at 1480. If this level breaks, then the precious metal could be seen pushing higher.

The minimum upside on a breakout will see the gold prices testing the 1500 level. If the 1500 resistance level holds then we expect the gains to stay on hold. Price action will therefore remain range bound within the 1500 level and the 1480 where support will be likely established.

To the downside, there is a risk that the precious metal will be testing the support at 1440. Price has managed to pull back after a minor support at 1460 has been established. In the coming days, trading volume is expected to decline. This could see price action trading flat in the short term.

Crude oil prices maintain bullish streak

WTI 201218

WTI crude oil prices have been trading in a bullish mode. Price action gained after the weekly inventory report showed a surprise drawdown. This came on contrary to the API report which showed a build up in inventory on Tuesday. Prices have been rising for six consecutive days so far.

Currently, price action has pushed above the resistance level of 60.64. We expect price action to trade within the resistance area of 60.64 and 63.00.  As long as prices do not breach this resistance area, we expect prices to remain range bound.

To the downside the price level of 58.00. We expect oil prices to retest this level where support could be established. Further declines could come on a break down below this level. However, we do not expect prices to move out of this range.

EURUSD holds at support


The euro currency was seen posting some modest gains. Despite slipping back to the support area of 1.1129 – 1.1120 level, price action is looking steady. The currency pair is holding steading amid some mixed signals.

As long as the support holds, we expect the bias to remain to the upside. However, the currency pair will be range bound within the upper resistance level of 1.1200 and the current support level. Economic data is expected to remain quiet over the coming week ahead.

As a result, the EURUSD currency pair will likely maintain a sideways range. To the upside, above 1.1200 will see a breakout. But the gains will come mostly likely on strong bullish fundamentals.

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