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Gold, WTI Crude oil and EURUSD - Intra week technical outlook, 29/04/20

Gold prices retreat for the third consecutive day

XAUUSD 2904

The precious metal is posting losses for the third consecutive day, offset by the declines from last Friday. Gold prices are easing back amid talks about various countries ending lockdown measures. This could mean that soon, the global economy could be back on the track, albeit at a slower pace.

The current declines are validated following the close below the key price level of 1708.50. However, today’s price action needs to close below this level to confirm further declines. In such case, we expect gold to touch down to the lower support area of 1643.

However, there is scope for prices to retrace midway. This will see the price level of 1708.50 being retested for resistance once again. However, as long as prices hold out below this level, the downside is likely to prevail.

Crude oil recovers slightly following sell off

WTI 2904

WTI crude oil prices are posting a modest recovery but not before price fell to intraday lows of 10.27. This comes after WTI crude oil prices posted strong declines in the previous session. This came amid renewed concerns about storage supplies and led to the front month futures contracts losing the momentum as well.

For the moment, price action in crude oil continues to remain erratic. The price handle at 10.00 is holding out as support for the moment. This puts the upside bias toward the price level of 20.00. We expect oil prices to remain range bound within these levels for some time to come.

If prices lose the 10.00 level of support, we expect a move even lower. This could potentially open up the risk of oil prices once again falling to zero. Unless prices post a strong recovery, we do not see much movement in oil prices in the short term.

EURUSD rebounds as sideways range persists

EURUSD 2904

The euro currency is posting a modest rebound after prices fell to the lower end of the range at 1.0784. Given that prices continue within a sideways range between 1.1000 and 1.0784, the rebound puts the sideways range back into focus. No clear direction is in sight for the euro currency for the moment.

The current rebound coincides partly with the trend line and the horizontal support level. If prices continue to move higher, then expect the EURUSD to retest the upper resistance level of 1.1000 in the near term.

Alternately, if the support level breaks then we expect the euro currency to post fresh lows. A lot of this will depend on the strength of the U.S. dollar. For the moment, the market sentiment has pushed the USD slightly lower, as a result this could see some upside movement in prices, but within the mentioned ranges.

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