ADVERTISEMENT



Gold, WTI Crude oil and EURUSD - Intra week technical outlook, 21/06/19

Gold rallies to new highs, testing $1400

Gold 2106

The precious metal continues to maintain the strong gains since earlier this week. The precious metal rallied to test the $1400 handle earlier this morning. This could potentially see price action pausing for a while.

We expect gold prices to consolidate near the current highs in the short term. Support is seen at the 1360 level followed by the 1300 level. However, we do not expect this support to be tested anytime soon.

To the upside, the current momentum could easily see gold rising to test the 1450 level as the next main target. However, it is likely that investors will be booking profits into the week which could lead to a modest pullback in price action.

Crude oil gains on rising tensions in the Middle-East

WTI 2106

Crude oil prices surged strongly on Thursday. The gains came as Tehran announced that it had shot down a U.S. drone near the Straits of Hormuz. President Trump tweeted that Iran made a big mistake.

The rebound in oil prices comes as prices drifted lower. The current gains have pushed oil prices to the technical resistance area of 57.50. The daily chart shows a possible hidden bearish divergence near this level. This potentially signals a correction to the downside.

The support area at 54.00 will be key in the short term. If oil prices rebound off this level, we expect to see further upside gains, potentially breaking past the 57.50 handle.

EURUSD turns bullish

EURUSD 2106

The currency pair was seen turning bullish since Wednesday evening. The reversal came after the Fed’s dovish forward guidance on interest rates. The euro currency continues to drift sideways. The overall trend remains flat with the currency pair trading between 1.1400 and 1.1200 level.

While price action managed to rebound following the reversal off the support area near 1.1224 – 1.1200, the reversal remains doubtful. The EURUSD will need to continue to breakout higher and potentially test the highs of 1.1400 in order to confirm the upside.

Eventually, the currency pair will need to breakout above 1.1400 in order to confirm the upside bias in price. In the meantime, price action will likely remain caught within the range with a risk of a pullback to 1.1200 level once again.

Read 551 times

ADVERTISEMENT

ADVERTISEMENT

ADVERTISEMENT

ADVERTISEMENT

ADVERTISEMENT

Newsletter Subscription Form

You are more than welcome to subscribe to our Newsletter and be among the first who get to hear about regular updates on forex and other related news, brokers' updates, websites' changes and more!
I agree with the Terms and conditions and the Privacy policy
Thank you!