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Gold, WTI Crude oil and EURUSD - Intra week technical outlook, 22/05/20

Gold prices ease as US data shows signs of recovery


Gold prices are down over 0.5% intraday on Thursday. The declines came after economic data in the United States saw a slow but steady recovery. After businesses were closed mostly in March and April, forward looking indicators are starting to lift off from the lows. This has helped investors to raise bets on riskier assets, pushing gold prices lower as a result.

XAUUSD has briefly tested the support area of 1729.89. But prices promptly pulled back off the lows. With the overall price action steady above this level, the bias still remains to the upside. For price to continue higher, gold must break past the previous highs formed near 1760.

To the downside, failure to post new highs could open the risk of a correction. But this will depend on how prices react to the support area of 1729.89. Only a strong close below this level can suggest further declines. In the event of a breakdown below 1729.89, expect gold price to slip toward the next price level at 1683.4.

WTI Crude oil advances another 2%

WTI 2205

Crude oil prices are posting a steady recovery as the recent gains saw the commodity rising past the $30 threshold for a barrel on Thursday. The gains come as various economies are reopening after the shutdown due to the pandemic.

The current gains have accelerated ever since oil prices broke the technical resistance area at 28.00. Since then, prices are rising steadily. At this rate, WTI Crude oil could easily rise to the 42.00 level where the next major resistance level resides.

The upside is in preference for the moment. Any declines will be the 28.00 level holding up as support in the near to medium term outlook. Following the rise to the 42.00 level we could expect oil prices to consolidate within the 28.00 and 42.00 levels in the near term basis.

EURUSD testing 1.1000 handle


The recent gains in the EURUSD currency pair finally saw the euro rising to test the 1.1000 level of resistance. However, there are signs of prices likely to pull back. This could be confirmed if the daily candlestick closes with a doji.

Following the doji, a bearish close could confirm the downside. This will relegate the EURUSD back to the sideways range within 1.1000 and 1.0784 levels. This will mark the third test of resistance at the 1.1000 level in the near term.

The gains in the EURUSD comes as the dollar has softened. The declines in the dollar comes amid improving global sentiment and with many economies reopening for business. This is expected to see economic activity to gradually rise as a result.

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