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Gold, WTI Crude oil and EURUSD - Intra week technical outlook, 24/04/20

Gold prices resumes rally once again

XAUUSD 2404

An improved market sentiment is pushing the prices of gold higher as well alongside equities. As a result, prices could see a possible breakout higher off the previous lows. This could potentially see gold prices rising to new highs. The upside bias comes as gold prices are emerging from the bullish flag pattern.

Price action is currently testing the upper resistance level of 1740. A breakout above this level is needed which will put the upside target toward 1860 as the minimum upside. Alternately failure to breakout higher could signal a move to the downside.

The lower minor support is seen at 1680 handle. If this support breaks, then we expect a close lower. This will trigger the downside correction. XAUUSD will need to then push lower to the 1642 level of support.

WTI crude oil manages to post modest gains

WTI 2404

Two days after the dramatic move in crude oil prices, WTI crude oil is seen posting a modest but a steady recovery. Price action is showing gains for two consecutive days after slipping to lows below zero just a few days ago.

Currently, the resistance level is established at 20.00. A breakout above this level is needed to confirm further upside. Prices could stall if the current rally stalls near the 20.00, failing to breakout higher. For the moment, the range is between 20.00 and 0.00 floor.

As a result, if WTI crude oil fails to breakout any higher, we expect price action to reverse the gains. As long as the resistance level of 20.00 holds, WTI crude oil could consolidate below this level. However, with the floor at 0.00, we could expect to see prices drifting slightly lower. But for the moment, the declines seem to be done.

EURUSD finds interim support at 1.0811

EURUSD 2404

The declines in the EURUSD continue in the short term. Price action slipped to the support area of 1.0811 on Thursday before quickly rebounding. This suggests that the support level is being tested while at the same time, we can see that there is a lot of buying interest.

For the moment, the moves in the EURUSD follow that of the US dollar which has been in a steady uptrend. But the medium term trend in the EURUSD remains flat. Price action could potentially breakdown lower if the support fails. At the same time, there is scope for the EURUSD to form a double bottom.

Such a price action pattern near the support level will suggest a possible breakout to the upside if prices reverse direction. This will also potentially see the euro breakout from its range within 1.1000 and 1.0811 level of support.

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