ADVERTISEMENT



Gold, WTI Crude oil and EURUSD - Intra week technical outlook, 25/01/19

Gold holding on to support at 1280

GOLD 250119

Gold prices attempted to break past the 1280 support level briefly but prices managed to cling on to the support level. This potentially suggests that there could be risks of the price of the precious metal pushing higher in the near term. However, the upside gains remain limited to only retest the breakout level near 1290 from the triangle pattern.

In the near term however, the outlook remains to the downside. Gold prices are most likely to test the 1250 handle if the 1280 support gives way. This would mark a meaningful correction to the downside, following the strong gains posted previously. The lower support at 1250 remains untested for the moment.

To the upside, gold prices could potentially maintain the range within the 1300 and 1280 levels overall. A breakout from this range will potentially give way for further gains or declines.

Oil prices bounce off the 52 handle

WTI 250119

No sooner than oil prices fell after testing the resistance level at the 54.00 handle, price action is starting to show a reversal. The reversal comes as oil prices test the 52.00 level. This marks the breakout from the triangle pattern and could potentially put oil prices biased to the upside. But this is subject to WTI crude oil breaking the resistance level at 54.00

In such an event, oil prices could be seen extending strong gains with the next main resistance level poised at 58.00 It is however unlikely that the gains will be maintained as lack of support near the 50 level could put the upside move at risk.

A retest of the 50 level to establish support will potentially signal further gains in the near term. However, for the moment, oil prices are likely to settle within the range of 54 and 50.

Euro drops on ECB, but support levels could hold

EURUSD 250119

The euro currency was seen posting declines amid volatility following the ECB's monetary policy meeting held on Thursday. Price action briefly tested the minor support at 1.1312 before pulling back higher. It is likely that this support could eventually be breached.

This would push the euro lower toward the 1.1282 level. As long as these support levels hold out, the euro currency could potentially aim for the upside.

A break down below the two support levels could extend the declines in the euro lower to 1.1200 where strong support remains. With the rising trend line being breached, this would invalidate the ascending triangle pattern and shift the focus to the downside for the moment.

Read 546 times

ADVERTISEMENT

ADVERTISEMENT

ADVERTISEMENT

ADVERTISEMENT

ADVERTISEMENT

Newsletter Subscription Form

You are more than welcome to subscribe to our Newsletter and be among the first who get to hear about regular updates on forex and other related news, brokers' updates, websites' changes and more!
I agree with the Terms and conditions and the Privacy policy
Thank you!