Gold, WTI Crude oil and EURUSD - Intra week technical outlook, 29/05/19

Gold declines as the head and shoulders pattern gains momentum

Gold 2905

Gold prices were seen opening the week on a soft note but by Tuesday, as the U.S. and the UK markets returned from the Monday bank holiday, gold prices were on track to erase some of the gains from the week before.

While price action still remains perched above the 1270 level of critical support, we anticipate that the declines could possibly extend to test this level. For the moment, gold prices are trading within the range of 1285 – 1270 region.

As long as the bias is to the downside, gold could be seen potentially breaking the 1270 support. This support has held up for the past few weeks but the repeated test of this level indicates a possible breach lower.

Crude oil could consolidate into a bearish flag pattern

WTI 2905

Crude oil prices were seen stalling the declines from last week as price posted a modest retracement to the upside. However, the failure to post any meaningful correction to the upside suggests that oil prices could be currently consolidating.

The daily chart indicates the potential bearish flat pattern that is taking shape. The lower support at 57.50 will be critical in the near term. As long as this support holds, oil prices could remain range bound with the possibility of a rebound to the upside.

Alternately, in the event that crude oil breaks the 57.50 handle, we anticipate that the declines will push oil prices down to 51.00 region. To the upside, the resistance at 60.64 also remains within sight.

Euro resumes its declines


The euro currency which showed some signs of life last week saw the gains being capped near the resistance area of 1.1224 – 1.1200 region. The reversal off this resistance level indicates that the upside could be capped for the moment.

To the downside, the current decline in the EURUSD currency pair could potentially see the common currency testing the previous lows that were formed. The initial minor support is seen at 1.1150 but a break down below this level could see the euro likely to post new declines.

In the medium term outlook, the EURUSD remains range bound and stuck near the current lows. The currency pair looks unlikely to break out from this range so far and could remain trading sideways in the near term.

Read 605 times






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!