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Gold, WTI Crude oil and EURUSD - Intra week technical outlook, 29/11/19

Gold trades flat but bias is lower


The precious metal has been trading flat over the past few days. This comes amid conflicting reports on the U.S. and China trade developments. This has kept the price of gold bouncing back and forth. However, the medium term bias is looking weaker with gold prices likely to slip to the 1440 handle.

The sideways range within 1497 and 1440 remain in play for the moment. We expect gold to modestly rebound of the 1440 level if it doesn’t break the support level strongly. To the upside, there is scope for prices to once again test the 1497 region or at least post a lower high closer to this price point.

A breakdown below the 1440 level opens the way for gold prices to drop further to the 1350 handle. This will mark a much awaited correction in gold prices. The longer term outlook for gold remains to the upside. With the correction to 1350, there is scope for price action to push higher.

Oil prices hit resistance at 58.00

WTI 2911

Crude oil prices have been inching higher over the week. This comes despite the weekly crude oil inventory report showing a continuation to the build up in oil prices. Last week’s report saw another similar outcome. However, oil markets are currently ignoring the weekly inventory report.

The bias to the upside comes amid renewed trade optimism. The general consensus is that if the U.S. and China strike a deal, the global slowdown could be averted. This will put the demand for crude oil back on the front seat. There is also rumors that Saudi Arabia and Russia, along with other OPEC members will keep the current production cuts in place.

At the current level, oil prices need to breakout above the 58.00 level of resistance. A close here could confirm the gains to the 60.50 level which marks the next upper resistance. To the downside, the declines are well supported by the rising trend line.

EURUSD drifts lower, but price trades flat


The common currency has been pushing lower over the past few sessions. However, price action is still far off from testing the lower support level of 1.0958. This comes as the current price level near 1.10000 is holding out strongly.

This is but expected as the price level of 1.10000 is a psychologically important level. A breakdown below this level will put the EURUSD back to the previously established lows. Therefore, in the medium term, we expect the currency pair to remain trading sideways.

Any near term gains will be expected to hold near the upper resistance level of 1.1111. A breakout above this level could see some further gains coming along.

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