Market Analysis: Gold Price Eyes Recovery While Crude Oil Price Surges
Gold price is eyeing a fresh increase above the $1,915 resistance level. Crude oil price is surging, and it could climb further higher toward the $92 resistance.
Important Takeaways for Gold and Oil Prices Analysis Today
· Gold price started a recovery wave from the $1,900 zone against the US Dollar.
· It broke a major bearish trend line with resistance near $1,908 on the hourly chart of gold at FXOpen.
· Crude oil prices rallied above the $88 and $90 resistance levels.
· There is a key bullish trend line forming with support near $89.00 on the hourly chart of XTI/USD at FXOpen.
Gold Price Technical Analysis
On the hourly chart of Gold at FXOpen, the price found support near the $1,900 zone. The price traded as low as $1,900.93 and recently started a recovery wave.
There was a decent move above the 50-hour simple moving average. The bulls pushed the price above a major bearish trend line with resistance near $1,908. It is now testing the 50% Fib retracement level of the downward move from the $1,930 swing high to the $1,900 low.
The RSI is back above 50 and the price could aim for more gains. Immediate resistance is near the $1,915 level. The next major resistance is near the $1,924 level.
The 76.4% Fib retracement level of the downward move from the $1,930 swing high to the $1,900 low also sits at $1,925. An upside break above the $1,924 resistance could send Gold price toward $1,930. Any more gains may perhaps set the pace for an increase toward the $1,950 level.
Initial support on the downside is near the 50-hour simple moving average or $1,908. The first major support is $1,900. The main support is $1,888. If there is a downside break below the $1,888 support, the price might decline further. In the stated case, the price might drop toward the $1,865 support.
Oil Price Technical Analysis
On the hourly chart of WTI Crude Oil at FXOpen, the price started a strong increase against the US Dollar. The price gained bullish momentum after it broke the $87.70 resistance as mentioned in the previous analysis.
There was a sustained upward move above the $88.50 and $89.50 resistance levels. The bulls pushed the price toward $90.50. The current price action is positive above the 50-hour simple moving average and RSI is near oversold levels.
If the price climbs further higher, it could face resistance near $90.80. The first major resistance is near the $91.20 level. Any more gains might send the price toward the $92.00 level.
Conversely, the price might correct gains and test the 23.6% Fib retracement level of the upward move from the $87.68 swing low to the $90.48 high at 89.80. The next major support on the WTI crude oil chart is near a key bullish trend line at $89.00.
The 50% Fib retracement level of the upward move from the $87.68 swing low to the $90.48 high is also near $89.00. If there is a downside break, the price might decline toward $87.70. Any more losses may perhaps open the doors for a move toward the $85.60 support zone.