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Gold, WTI Crude oil and EURUSD - Intra week technical outlook, 23/07/20

Gold edges closer to 1900 mark

XAUUSD 2407

The precious metal is on a very bullish streak with price action resuming its strong momentum on Thursday. To date, gold prices have been posting consecutive gains for five daily sessions and could be on track to close the week with solid gains. On an intraday basis, gold prices tested highs of 1898.29 before pulling back rather slightly.

The gains come following the strong close above the 1850 handle on Wednesday. Instead of a pullback to establish support near this level, gold prices continued to be pushed higher. We could expect prices to test the 1900 level into Friday's close.

In the near term, any declines might be stalled near the 1850 handle. Unless gold prices breakout above 1900 we do not expect to see any further gains. Profit taking will also likely lead to declines in the short term. So, the support level at 1850 will be crucial to watch.

WTI crude oil stays subdued

WTI 2407

Crude oil prices are trading bearish following two days of gains. Price action rose to the 42.00 level following which, price action is pulling back on Thursday. Failure to breakout above the 42.00 level is likely to see oil prices posting further declines.

For the moment, the consolidation will likely continue with the 42.00 level and the 200-day moving average. However, the overall bias remains to the upside, following the upside breakout from the ascending triangle pattern.

In the event of a close below the 200-day moving average WTI crude oil prices might be at risk of posting further declines. We could however expect to see price falling near the 50-day moving average of 37.54.

EURUSD turns to bullish territory

EURUSD 2407

The euro currency is finally showing signs of an uptrend, with prices rising to highs near 1.1600 handle. The gains come on the back of a weaker USD which has been in a steady decline. However, there is a strong risk that prices might make a pullback given that no support has been established.

A pullback to the 1.1400 handle looks likely, especially if traders book profits into the weekly close. Unless price action fails to close above the 1.1600 level, we do not next to see further gains in the making.

For the moment, the fundamentals are bullish for price action at the moment. In the event of a close above the 1.1600 level, then we expect prices to continue to the 1.1800 level where we have the next main resistance level.

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