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Gold, WTI Crude oil and EURUSD - Intra week technical outlook, 30/01/19

Gold, aiming for 1320

EURUSD 300119

Gold prices were seen maintaining strong gains over the week. Price action, having breached the resistance level of 1300 has managed to briefly establish support at this level before surging higher.

The currency pace of gains indicate that gold prices could be pushing higher to test the next main resistance level at 1320. We expect gold to consolidate around the 1322 level in the near term. Overall, gold is likely to establish the new corridor between the 1320 and 1300 levels in the near term. Given the fact that the lower support levels have not been tested, gold prices are likely to come at risk of a big correction. Watch for price action near the the 1300 level which could given early signals.

The Ichimoku cloud currently looks weak indicating that there could be a correction in the near term. The Stochastics oscillator however looks firmly in the overbought level indicating the upside momentum.

WTI likely to trade sideways

WTI 300119

Oil prices were seen posting a modest rebound following news reports about the U.S. government imposing sanctions on a state owned Venezuela oil company. Oil prices reacted by briefly rising to levels around 53 before easing back.

The main resistance level is seen at the 54 handle which could be tested in the near term. Overall, crude oil prices could be seen maintaining the corridor between the 54 resistance and 50 support.

Only a breakout off these levels will indicate further direction to the trend. We continue to watch the 46 handle which could be tested in the near term. This is subject to oil prices posting a decline below the round number support of 50.
Alernately, if oil prices maintain the current momentum, then we could expect a breakout above 54 which could then put the 58 resistance within reach.

EURUSD remains flat in the medium term

EURUSD 300119

The euro currency was seen posting some gains over the week as price action is now seen trading close to the 1.1450 resistance level. As previously mentioned, a reversal around this level could potentially validate a head and shoulders patterns that has been forming since early 2019.

A reversal off 1.145 followed by a decline to 1.1320 could mark the right shoulder formation of the head and shoulders pattern. If the neckline support at 1.1320 - 1.1312 breaks, we could expect the euro to post declines toward 1.1100 at the very least.

Alternately, if the euro manages to break past the 1.145 resistance, we could expect to see the upside taking shape with the next resistance at 1.1550 within sight.

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