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Gold, WTI Crude oil and EURUSD - Intra week technical outlook, 22/05/19

Gold attempts to consolidate near the lows

Gold 2205

The recent declines in gold prices were seen stalling as price action remains subdued near the lows of 1270. At the time of writing, XAUUSD was seen testing the 1270 handle before pulling back modestly higher.

We expect this correction to be maintained in the near term. A retest of the 1285 handle once again for resistance could confirm the downside bias in gold. In the near term, watch for a potential reversal near the 1285 level which should act as resistance.

If the resistance at 1285 holds, then we anticipate further declines in the near term. Gold prices could be potentially looking at a decline to the 1250 handle following this break down. The support level at 1250 – 1240 will be critical in the near term.

Crude oil muted at 63.00 handle

WTI 2205

WTI Crude oil prices have managed to regain the 63 level of resistance. However, price has barely moved from this level in the short term. We expect this consolidation to take place in the crude oil prices in the near term.

Unless price continues to breakout higher to test the previous resistance level of 66 – 65 region, we anticipate the declines to continue lower. The support at the 57.50 region remains the target to the downside.

Establishing support near the 57.50 level will potentially signal a continuation to the upside as we anticipate oil prices to continue extending the gains higher.

Euro posting higher lows

EURUSD 2205

The EURUSD was seen extending the declines as prices briefly tested the 1.1150 level on Tuesday. Price action could potentially post a short term rebound in the near term. However, the upside resistance at 1.1224 – 1.1200 will likely keep the gains in check.

In the near term, watch as EURUSD could likely consolidate near the current levels. There is a scope for price to slip to 1.1128 levels testing the lows from early May. However, the downside could likely be capped at this level.

We expect the currency pair to continue maintaining its consolidation both in the short term and the medium term outlook.

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