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Gold, WTI Crude oil and EURUSD - Intra week technical outlook, 23/10/20

Gold loses its shine near 1920

XAUUSD 2310

The precious metal is giving back all the gains made on Wednesday. The declines come as investors remain cautious on the U.S. stimulus bill, also known as the Coronavirus bill. News about the Democrats blocking the bill saw the risk sentiment shifting, which in turn is pushing gold prices lower.

For the moment, the bullish bias in gold remains intact. But this could change if gold loses the 1900 level. Still, it would depend if the pace of declines are strong or not. For the moment, price action could gain support from the trend line and the horizontal support area.

This keeps the upside bias for now. If gold dips below the 1900 level strongly, then we could see another decline down to the 1850 level. Such a move would potentially confirm a sideways range in the gold markets.

Oil flips back after inventory report

WTI 2310

Crude oil prices fell earlier on Wednesday after the weekly U.S. inventory report from the EIA showed a larger than expected build up. But price managed to reverse the trend a day later on Thursday. Crude oil prices are up over 2% intraday, brushing aside the weak report.

The gains also come amid a stronger U.S. dollar which has been pushing higher on Thursday as well. Still, the overall trend remains flat in the oil markets. There are no signs of any clear trend emerging any time soon.

For the moment, prices are caught once again between the 200-day and the 50-day moving averages. To the downside, further declines could stall near the 36.00 level. While to the upside, any gains will have to come on fundamentally driven news.

Euro rally takes a pause

EURUSD 2310

The euro currency is trading bearish on Thursday. This comes after the common currency rose for nearly four consecutive sessions. This has pushed the EURUSD briefly above the 1.1880 levels. However, the currency pair reversed gains just a few points off the 1.1900 handle.

The current declines could stall near the recent swing high formed around 1.1833. A close below this level could extend further declines. The next key support area will be the 50-day moving average line. Still, here, we can see the 1.1700 level holding up.

This makes the case for further continuation to the upside. Of course, the EURUSD must break past the 1.1900 level to confirm further gains. Above this level, the next key target will be the 1.2000 handle.

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