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Gold, WTI Crude oil and EURUSD - Intra week technical outlook, 22/03/19

Gold slips after Fed meeting

Gold 2203

Gold prices posted strong gains on Wednesday following the Fed meeting. The central bank signaled that it would not be raising rates for the rest of this year. Gold prices surged on the news by Wednesday’s close, but that changed at Thursday’s open. Gold reversed the gains from Wednesday and resumed the bearish trend.

The reversal comes after gold prices briefly touched the 1320 handle and posted a strong decline. Price is seen now approaching the support at 1300. The round number support could be seen holding out the declines in the short term.

However, a break down below this level could extend gold prices lower and possible see the precious metal resuming the bearish outlook. On the 4-hour chart, gold prices remain rather choppy for the moment but we could anticipate a sideways pattern taking shape within 1320 and 1300 level in the near term.

Crude oil outlook remains mixed

WTI 2203

Oil prices were seen regaining back the highs of 60.00 on Thursday. This came after prices were seen initially slipping to lows of 58.50 before reversing the declines and posting a higher high as a result. The Stochastics oscillator shows a bullish momentum that is being maintained at the moment.

The support level at 58.50 which is a minor level will be key for further price action bias. We could potentially anticipate oil prices to continue to drift higher. However, without establishing any clear support to the downside, the gains are likely to remain a bit choppy near the highs.

We continue to expect that oil prices could possible crash lower with the support at 58.00 being key for price action. The bias remains to the upside as long as oil prices are above 58.00 handle, but that could change on a decline below this support level.

EURUSD slumps as the sideways range continues


There seems to be no respite for the EURUSD as the currency pair was seen reversing the gains made from the FOMC meeting on Wednesday. Price action saw a brief rally to highs of 1.144 before easing back sharply by Thursday’s close.

The reversal off this level keeps the EURUSD within the range of 1.1450 and 1.1312 level. Despite prices breaking the trend line, the euro currency closed back below this tend line on Thursday as a result, leading to further declines. The lower support at 1.1312 remains key if the bearish trend continues.

As long as the support area of 1.1312 – 1.1285 holds out, the EURUSD currency could remain supported with the bias looking slightly to the upside despite the flat ranging price action for the moment.

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