ADVERTISEMENT



Gold, WTI Crude oil and EURUSD - Intra week technical outlook, 26/02/20

Gold prices retreat after a fresh 7-year high

XAUUSD 2602

The precious metal maintains its bullish bias as price touched a new seven year high on Monday. After rising to highs of 1680, the yellow metal is giving back the gains. Part of this is driven by profit booking from the bulls.

It is a bit too early to speculate on the change in the trend. However, in the near to medium term horizon, gold could drop to the 1580 handle. Establishing support here will be critical in the near term for any further gains to emerge.

Meanwhile, watch for a possible lower high forming on a rebound off 1580 handle. This will signal that the uptrend is likely done. XAUUSD could settle either into a range or start to retreat lower. This will depend on how price will react to the 1580 handle on the second retest of the support level.

WTI crude oil turns bearish, but a bottom is likely

WTI 2602

Crude oil prices failed to hold on to the gains from earlier last week. Price action fell sharply on Monday. The declines came on account of fears of the Coronavirus impact on the economy. Reduced economic activity is expected to hit the demand for crude oil.

Technically, after rising to the 54.00 handle, oil prices formed a bearish doji on February 20th. This led to a bearish follow through and price action eventually pushed lower. At the time of writing, WTI crude oil is testing the long term trend line.

Currently, the Stochastics remain a bit overbought and pushing lower. This is consistent with the bearish view in price action. However, watch for any moves in WTI crude oil. If the trend line breaks, we expect prices to dip back to the previous lows near 49.50. There is a strong chance that support will hold on another retest of this level.

EURUSD maintains bullish outlook

EURUSD 2602

The EURUSD currency pair is posting a strong rebound after weeks of declines. This comes as the U.S. dollar is taking a backseat after months of posting gains. The economic data is also starting to shift to the reports for January. The Eurozone economy was in a slump in the final quarter of last year.

But this is starting to change as reflecting in the price action for the EURUSD currency pair. Price has clearly reversed near the 1.0800 handle. The EURUSD is posting gains for the third consecutive session. If this bullish momentum holds, we expect a test to the 1.0958 handle soon.

There is a strong chance that the EURUSD will test the resistance at this level in the near term. However, we expect some consolidation to take place between 1.0800 and 1.0958 levels in the short term. A breakout from this consolidation will certainly establish the next leg in the direction of the currency pair.

Read 416 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!