Gold, WTI Crude oil and EURUSD - Intra week technical outlook, 23/11/19

Gold prices drift amid lack of clear catalysts

The precious metal was seen easing back from the gains made earlier in the week. The declines come amid lack of any new details on the major global narratives. The U.S. and China trade talks continue to remain inconclusive. Meanwhile, the FOMC meeting minutes on Wednesday also did not give out much information.

Price action could however remain supported above the 1440 level in the near term. The overall sideways range within 1497 to 1440 is likely to be maintained in the near term. A breakout from this level will set the path to the direction in prices in the medium term outlook.

For the moment, there is a strong chance that gold prices could test the lower support area. This comes as the daily Stochastics looks to be heading lower. A retest of the lower support could see a modest rebound. But overall, gold will remain flat until the range is breached.

Oil prices rise higher for the second day

Crude oil prices maintained the strong bullish moment for the second consecutive day on Thursday. The gains come as oil prices ignored the weak EIA weekly inventory report. There was another week of build up in crude oil inventories. But oil prices ignored the report and jumped higher.

The gains in the crude oil markets could potentially invalidate the head and shoulders pattern that we are looking for. If the previous highs are breached, then oil prices could be heading back to the resistance level near 60.64. This will then put the pressure to the upside.

A breakout above 60.64 region is needed in order for further gains to come by. Alternately, oil prices, could remain drifting sideways. With the head and shoulders likely invalidated, the downside bias also decreases.

Euro snaps a six day winning streak

The euro currency was seen trading weaker on Thursday. This marks an end to a six day winning streak that pushed prices to short term highs of 1.1096. The current declines come as the U.S. dollar power ahead, snapping a losing streak.

The euro currency has been relatively muted, trading mostly due to the flows driven by the USD. The dollar is also gaining on the back of trade uncertainty between the United States and China.

If the current declines continue, the EURUSD will be testing the lower support at 1.0958. A retest of this support will potentially mark and end and also confirm a possible bottom that is formed.