Gold, WTI Crude oil and EURUSD - Intra week technical outlook, 25/03/20

Gold surges over 4% on Fed stimulus program


The precious metal rose over 4% on the day on Tuesday. The gains came as the Federal Reserve announced an open ended bond purchase program. This has led to a rally in the previous metal as well which is rising.

From a technical perspective, the gains mark a third consecutive day. This has pushed price action to close over the 1580 level of resistance. At the time of writing, gold prices are trading near the 1617 level.

There is a risk of price action slipping back to the near term. The price area near 1580 could be retested for support. If support is formed here, then we expect a rally towards the 1640 handle next. However, if the support breaks, we expect a dip to the 1522 level.

WTI continues to consolidate near the lows

WTI 2503

WTI crude oil prices are trading near the lows around the 22 handle. The resistance level near 28.00 is proving hard to break. WTI has managed to post a modest rebound but oil prices are consolidating near this lows.

However, the lower support at 22.50 is holding up for the moment. We expect the range between 28.00 and 22.50 to hold in the near term. However, the upside bias is building up. The Stochastics oscillator is in oversold levels.

Therefore, keep a watch on the oscillator. This could signal a possible move to the upside. The gains above the 28.00 will be hard to break. But further upside can be expected on a breakout above this level.

EURUSD attempts to breakout off resistance


The EURUSD currency pair is attempting a modest rebound. Price action rebounded after a brief moment of USD weakness. The resistance level near 1.0788 is proving hard to break as it is a confluence between the trend line and the horizontal resistance level.

We expect the EURUSD to maintain a modest range within the 1.0788 and 1.0683. There is a risk that the euro currency will slip to the downside below 1.0683. This could push the common currency even further.

Price action will remain a bit erratic in the near term. If we see a successful close above 1.0788 then we see a move to the 1.1000 level. It is likely that the resistance level here will be forming.

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