ADVERTISEMENT



Gold, WTI Crude oil and EURUSD - Intra week technical outlook, 26/05/20

Gold prices looking weaker

XAUUSD 2705

The precious metal is trading weak, failing to make any significant gains in the past few sessions. Gold prices are down as investor sentiment is boosted once again. The idea of various economies easing the lockdown restrictions has pushed demand for riskier assets. The precious metal has been stuck at the top end of rally and could be looking to post a correction if this continues.

Price is currently struggling to breakout above the 1729.89 level. Therefore, a bearish close below this resistance area will confirm the downside. We expect gold price to hit the lower end of the range at 1683.40. This will push the precious metal back into the sideways range.

Following this, gold prices could settle into a range again. But this might change if price breaks down below the 1729.89 level. It would open up the declines further, pushing prices down to the 1642.96 region where the previous support level exists.

Oil prices rise as demand returns steadily

WTI 2705

WTI Crude oil prices are rising steadily as demand is set to return. This comes as various economies are reopening up for business. With some airlines are resuming travel, demand for fuel is expected to rise gradually. Rumors of supply cuts are also helping prices to remain on the upside. Comments from Russia that it cuts it oil output to the 8.5 million barrels target has helped prices.

Price action is in a steady uptrend for crude oil. As a result, we could expect a continuation to the upside. The next main target for crude oil is the 42.00 handle. We expect resistance to form at this region if price continue to drift higher.

Given the lack of any lower support forming, crude oil prices might be at risk of a pullback. The only lower support now is seen at the 28.00 level. A break down below this will see the previous support area at 20.00 coming into the picture.

EURUSD posts modest gains

EURUSD 2705

The euro currency is posting some modest gains on the day, rising on the back of an easing dollar. The US dollar has been in a steady increase in the past few sessions. But with improving market sentiment, the demand for the dollar is likely to fall. The EURUSD is not out of the woods yet as price action remains within the range that has already been established.

However, the current higher low could be an initial signal. But for this to be validated, the EURUSD currency pair must breakout above 1.1000 level. This will confirm the upside and also set the stage for the EURUSD to test the next main resistance level at 1.1147.

To the downside, if prices fail at 1.1000 level, we expect the current range to continue. This means that the EURUSD will be at risk of a pullback. The lower support at 1.0784 will be the downside target, although it would be difficult to expect this correction at this point in time.

 

Read 236 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!