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Gold, WTI Crude oil and EURUSD - Intra week technical outlook, 26/04/19

Gold in the midst of a correction

Gold 2604

Gold prices inched higher on Thursday with what seems to be a correction to the previous week’s declines. After settling near the lows of 1268, gold prices are pushing higher to test the 1280 handle.

Price action on the 4-hour chart is signaling a possible inverse head and shoulders pattern. While the pattern is still not evolved yet, watch for a possible right shoulder formation around the 1272 region.

A rebound off this level will see gold testing the 1280 handle where the neckline resistance has formed. A breakout to the upside will see gold advancing toward the 1296 region at the very least. The overall trend still remains down, but this correction could be a great way to establish new short positions in the market.

Crude oil turns flat at 66 handle

WTI 2604

Oil prices have been trading flat after the rally has pushed prices briefly higher above the 66.0 handle. Failure to hold on to the gains here has left oil prices to trade flat at this six month higher.

Price action still remains mixed with the potential for a move back to test the 66 region once again. In the near term, the minor support is seen at 64.50 level which could be tested in the short term. A rebound off this level will keep oil prices trading flat.

Failure to post any fresh highs and trading flat could see an eventual decline in oil prices. Watch for a break down below 64.50 which could trigger further declines in the medium term outlook.

Euro slips to fresh yearly lows

EURUSD 2604

The common currency extended strong declines which continued into Thursday’s close. Price action touched down to lows of 1.1120 during the day before attempting to recover. The declines come amid a brief strength in the U.S. dollar which has powered back to life.

As the EURUSD trades new fresh lows, the resistance level at 1.1200 is most likely to be tested in the near term. Forming resistance at this level which previously served as support could suggest further near term declines. However, we expect the common currency to remain range bound.

A fresh close below 1.1120 is required in the EURUSD to post further declines which remains a bit unlikely at the moment.

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