ADVERTISEMENT



Gold, WTI Crude oil and EURUSD - Intra week technical outlook, 28/10/20

Gold trades flat above support level

XAUUSD 2810

The precious metal is trading flat for nearly three daily sessions so far. Price action has been consolidating with no clear direction yet. The price action reflects the current market sentiment as the ECB meeting and the U.S. elections near. Furthermore, the fact that the week started with a higher number of Coronavirus cases in the U.S. also brings uncertainty.

With the support level holding up for the moment, we expect that gold prices are biased to the upside. But this could change if gold loses the current support area. This will push price action down to the 1850 levels.

To the upside, a breakout above 1950 is required to convince the markets for a move to the upside. However, it is unlikely that we will get to see such a breakout anytime soon. As a result, we expect gold prices to continue trading in this holding pattern into next week's U.S. elections.

Oil prices continue to trade flat

WTI 2810

Crude oil prices remain in the long term sideways range. Earlier on Monday, oil prices fell sharply, but price action recovered the losses into Tuesday. As a result, oil prices remain stuck within the range with the 42.00 level holding up as a strong resistance area. Furthermore, the recent uptick in the global coronavirus cases also keeps demand prospects in check.

In the near term, oil prices are holding on to the range between the 42.00 handle and the 36.15 level of support. This support level was formed initially after prices slipped in early September. If oil prices lose the 36.15 handle, then we expect further declines.

To the upside, unless there is a strong breakout above 42.00 levels, oil prices are unlikely to move further higher. The 50-day and 200-day moving average also remain flat suggesting the market price action for the moment.

EURUSD consolidates above 1.1800

EURUSD 2810

The euro currency is also trading rather flat near the current highs. Price action is supported above the 1.1800 level for the moment. But at the same time, prices aren't making any big gains either. This sideways range could hold into the ECB meeting this Thursday.

To the upside, the 1.1900 level will be the next big target. A close above 1.1900 will signal further gains toward the 1.2000 handle next. However, the risks remain mixed. Failure to breakout above 1.2000 level could keep the euro biased lower.

To the downside, the 50-day moving average might add some support to price action. A close below the 1.1757 level, where the current 50-day MA resides, we could see a decline to the 1.1600 level next.

Read 15 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!