Gold price recovered nicely from the $1,480 support area and climbed above $1,500. Crude oil price is correcting gains and it is facing hurdles near $60.00.
Important Takeaways for Gold and Oil
- Gold price started a decent upward move after it tested the $1,480 support area against the US Dollar.
- There is a major bearish trend line forming with resistance near $1,508 on the hourly chart of gold.
- Crude oil price is currently declining and trading close to the $58.00 support area.
- There is a key bearish trend line forming with resistance near $59.20 on the hourly chart of XTI/USD.
Gold Price Technical Analysis
Earlier this week, gold price declined sharply below the $1,500 support area against the US Dollar. The price even traded below the $1,490 support level and traded close to the $1,480 support area.
A swing low was formed near $1,483 on FXOpen and the price recently started a fresh increase. It broke the $1,490 and $1,495 resistance levels to move into a positive zone.
Moreover, there was a break above the 50% Fib retracement level of the last decline from the $1,511 high to $1,483 low. The price is now trading above the $1,500 level and the 50 hourly simple moving average.
An immediate resistance is near the $1,505 level, plus the 76.4% Fib retracement level of the last decline from the $1,511 high to $1,483 low. Moreover, there is a major bearish trend line forming with resistance near $1,508 on the hourly chart of gold.
Therefore, the price is likely to struggle to clear the $1,505 and $1,510 resistance levels. If there is an upside break, the price could climb towards the $1,525 and $1,530 levels.
On the downside, an immediate support is near the $1,500 level. If the price fails to stay above $1,500 or the 50 hourly SMA, there is a risk of a fresh decline towards the $1,485 and $1,480 levels.
Oil Price Technical Analysis
This week, crude oil price opened with a strong upward move and a gap above the $60.00 level against the US Dollar. The price surged above the $62.00 level and traded close to the $63.00 level.
A high was formed near $63.04 and the price recently started a downside correction. It broke the $61.20 and $60.00 support levels. Moreover, there was a break below the 50% Fib retracement level of the last major move from the $53.92 low to $63.04 high.
The price even traded below the 50 hourly simple moving average and tested the $58.00 support area. It seems like the 61.8% Fib retracement level of the last major move from the $53.92 low to $63.04 high is acting as a support.
The price is currently consolidating above the $58.00 level and the 50 hourly simple moving average. On the upside, there is a strong resistance forming near the $60.00 level.
There is also a key bearish trend line forming with resistance near $59.20 on the hourly chart of XTI/USD. Therefore, a break above the $59.00 and $59.20 resistance levels is needed for a fresh increase above the $60.00 resistance.
Conversely, the bears might push the price further lower below $58.00 to close the opening week gap. The next key supports are near the $56.00 and $55.50 levels.
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