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Gold, WTI Crude oil and EURUSD - Intra week technical outlook, 28/07/20

Gold prices surge to post a new all-time high


The precious metal continued its bullish rally this week. Price rose to a new all-time high this week, rising to intraday highs just above the 1975 level. The gains in the precious metal comes as investors are concerned on whether the global economy will recover following the pandemic outbreak. Furthermore, talks of further stimulus has also stoked concerns of inflation, pushing the precious metal to new highs.

For the moment, the lower support is at the 1900 level. However, it is unlikely to expect to see such a strong pullback. We could expect prices to continue higher. The $2000 level is the likely next target to the upside. But watch for signs of a possible exhaustion lower as the gains in gold come with little to no pullback.

While it will be still to early confirm if gold prices can be making a correction, watch the short term charts. The bias still remains to the upside as long as the 1900 level holds. In the event of a decline below 1900, then we need to see evidence of a lower high forming to confirm the correction.

WTI Crude oil remains caught within the range

WTI 2907

Oil prices continue to trade muted with prices stuck between the 42.00 and 41.00 levels. The sideways price action comes amid oil traders concerns' on the economic recovery globally. Concerns of a second wave could potentially dampen the demand outlook.

For the moment, the bias in oil prices are mixed. Unless there is a strong breakout within the range, we do not expect to see any major moves in the commodity. At the time of writing, oil prices are down 1.25%. But prices are merely paring gains from the previous sessions.

A strong close below the 41.00 handle will likely extend declines down to the 37.50 - 38.00 level of support. But to the upside, the resistance area near 42.00 is strong given the 200-day moving average as well. For the moment, the bullish ascending pattern also remains invalidated due to the consolidation.

EURUSD gains stable after a rise to a two-year high


The euro currency was one of the recipients of a weaker dollar. The common currency continued its bullish momentum as prices briefly traded just a few points below the 1.1800 level. Ahead of the Fed meeting, the euro is trading a tad lower amid profit taking.

The bias is to the upside amid a deteriorating US dollar. Technical support for the EURUSD is seen at the 1.1600 level. This is of course if the currency pair is set for a stronger correction. There is potential for EURUSD to rise toward the 1.2000 handle given the current pace of gains.

Watch how the common currency will test the 1.1600 level. If the bullish momentum does not gain traction, then we expect prices to close lower. Confirmation of a lower high will signal this further. Below 1.1600, we have the next support level at 1.1400.

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