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Gold, WTI Crude oil and EURUSD - Intra week technical outlook, 21/10/20

Gold trades flat amid a cautious sentiment

XAUUSD 2110

The precious metal was seen pushing higher over the past three sessions. Price action has been somewhat bullish since the weekend. This comes after the U.S. Congress is attempting to chalk out a stimulus bill ahead of the elections. While there has been no major outcome yet, investors are cautious.

This cautious sentiment is reflected in the tight range in the precious metal. Gold prices have been rebounding off the 1900 level of support for the past three sessions. A close above this level with a stronger momentum could signal further upside. This will then open the way for gold prices to test the 1930 region.

This will be the re-test of the October 12 highs. A breakout above this level could potentially signal further gains. There is also a possibility of a bullish ascending triangle pattern emerging with the neckline resistance at 1920.

Oil prices stall near 41

WTI 2110

Crude oil prices were trading somewhat bullish since the start of this week. Price action managed to test the 41 level earlier on Monday. The gains came after OPEC and Russia are looking at means to stall further declines in crude oil. This comes as the OPEC+ chief commented on Monday that the cartel would prevent oil prices from plunging further.

WTI Crude oil prices are retreating after prices touched the 41.00 handle earlier in the day. Overall, oil prices are caught within the range from last Thursday. Therefore, we expect this tight price action to continue, unless there is a strong breakout.

The overall medium term outlook in oil is also shaping out to an ascending triangle pattern. The resistance level is near the 41.5 -41.00 level. The subsequent higher lows is also adding to this bullish bias.

EURUSD turns bullish

EURUSD 2110

The euro currency is trading higher for the second consecutive day. The gains come primarily on the back of a weaker US dollar. The USD has been trading weaker in anticipation that the U.S. government will be passing a new Coronavirus stimulus bill. This has in turn helped the euro to rise in the short term.

Price action in the EURUSD breached the 1.1800 level on Tuesday. If this level holds, then we expect further gains to come. The next key challenge for the EURUSD will be the 1.1900 level. Depending on how prices react at this level we could see further gains if the 1.1900 gives way.

To the downside, we expect prices to remain range bound within the 1.1900 and 1.1800 levels. For the moment, we expect the support level near 1.1800 to hold. This will potentially cement expectations for further gains in the short term

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