Sign In   Register

ADVERTISEMENT



Gold, WTI Crude oil and EURUSD - Intra week technical outlook, 27/11/20

Gold prices steady near the 200-day moving average

XAUUSD 2711

The precious metal is trading flat for the second consecutive day. There were no big movements in the gold markets, with U.S. traders closed due to Thanksgiving holiday. Following the sharp declines earlier this week, gold prices are taking a temporary pause for the moment.

The 200-day moving average is holding on as dynamic support for now. As long as this level holds, we could expect prices to drift sideways. It also coincides with the psychological support of the 1800 level at the moment.

Only a strong catalyst will see gold prices breaking lower below the 1800 level. This could mean that there is a good chance for gold to retest the upside resistance. The levels near 1850 remains a prime target in case of any retracements.

Oil prices trade weaker on supply and demand

WTI 2711

WTI Crude oil prices are down close to two percent on Thursday. This comes after oil prices rose sharply on Wednesday. The Organization of the Petroleum Exporting Countries (OPEC) and allies including Russia are leaning towards delaying next year's planned increase in oil output to help the market weather the COVID-19 second wave.

For the moment, the declines are forming into an inside bar formation. This could mean that oil prices will post a break out in the short term. The overall bias is to the downside. This will make for a much needed correction in prices.

The lower support level near the 44.00 level is likely to be tested in the short term. Establishing support here could potentially signal further gains to the upside. However, if oil prices lose the 44 handle, then we could expect a move lower to the 42.00 support next.

Euro gives back recent gains

EURUSD 2711

The euro currency was giving back the recent gains on Thursday. The initial gains came on the back of a weaker U.S. dollar. However, with the U.S. markets closed on account of Thanksgiving holiday, the euro fell during the day. The declines came investors shifted attention to the rising number of Coronavirus cases in Europe.

Price action is on track to close flat for the day. This comes after the EURUSD briefly broke past the 1.1900 level of resistance. With prices trading somewhat on a softer note, the declines could see further retracement happening.

For the moment, the 1.1900 level will be coming under pressure. If this level gives way, then the EURUSD would be looking to the familiar support near 1.1800 in the short term. Overall, price action is unlikely to make any big gains in the short term. Therefore, we expect the euro currency to hold steady for the moment.

Read 86 times

ADVERTISEMENT

ADVERTISEMENT

ADVERTISEMENT

ADVERTISEMENT

ADVERTISEMENT