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Gold, WTI Crude oil and EURUSD - Intra week technical outlook, 27/03/19

Gold has likely completed the correction

Gold 2703

The rally in gold prices back to the key level of 1320 marks a retest of the previously breached minor support level. The reversal off this level could potentially mark a decline to the downside. The overall bias remains to the downside with gold prices expected to post a decline to 1250 – 1240 levels.

Watch the rising trend line that is newly formed. A break down of this trend line will signal a move to the downside. The initial support at 1300 remains vital. We could expect gold prices to either rebound at this level or break the support and continue with the declines lower. For the moment, price action is seen consolidating after hitting the resistance level.

Crude oil stuck near the top end of the rally

WTI 2703

Oil prices have remained range bound near the top end of the rally at the $60.00 handle. Prices regained this level after initially posting a bearish candlestick pattern. With the fundamentals in oil markets supporting the bullish move, we expect further consolidation to take place at the current levels. However, the overall bias is showing a hidden bearish divergence on the daily charts.

On the 4-hour chart, oil prices have likely formed resistance near the highs above 60.00. A bearish move here could signal a decline to the downside. Price will need to clear the 58.00 handle in order to post further declines. The lower support at 55.00 will remain the key level to the downside in case of a strong correction lower.

Euro turns bearish

EURUSD 2703

The common currency was seen giving up the previously logged gains as price action posted strong declines. The euro currency broke past the support level of 1.1312 – 1.1282 level at the time of writing. This is likely to see the common currency extending the gains to the downside with a retest of 1.1200 turning out to be increasingly likely.

On the 4-hour chart time frame, the euro currency has been forming lower highs and lower indicating the short term downtrend. This validates the downside bias. Watch the next key levels of 1.1224 – 1.1200 level of support area that could be tested in the near term. However, we expect the declines to hold out near this level.

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