Gold price is correcting lower and trading below $2,000. Crude oil price is facing an increase in selling pressure below $105.
Important Takeaways for Gold and Oil
· Gold price started a downside correction after a strong rally to $2,070 against the US Dollar.
· There is a key bullish trend line forming with support near $1,985 on the hourly chart of gold.
· Crude oil price corrected lower, but it found support near $100.00.
· There was a break below a short-term ascending channel with support near $108.10 on the hourly chart of XTI/USD.
Gold Price Technical Analysis
Gold price formed a support base near $1,950 and started a fresh increase against the US Dollar. The price gained pace for a move above the $2,000 level to move into a positive zone.
There was a clear move above the $2,020 level and the 50 hourly simple moving average. The price even climbed above the $2,050 resistance level. A high was formed near $2,070 on FXOpen before the price started a downside correction.
There was a break below the $2,000 level. The price even spiked below the $1,980 level, but it found support near $1,970. A low is formed near $1,970 and the price is now consolidating.
There was a move above the 23.6% Fib retracement level of the recent decline from the $2,070 swing high to $1,970 low. On the upside, the price is facing resistance near the $2,000 level and the 50 hourly simple moving average.
The main resistance is now forming near the $2,020 level. The 50% Fib retracement level of the recent decline from the $2,070 swing high to $1,970 low is also near $2,020. A close above the $2,020 level could open the doors for a steady increase towards $2,050. The next major resistance sits near the $2,070 level.
On the downside, an initial support is near the $1,985 level. There is also key bullish trend line forming with support near $1,985 on the hourly chart of gold. If there is a downside break below the $1,985 level, the price could decline to $1,920.
Oil Price Technical Analysis
Crude oil price started a steady increase from the $100.00 support zone against the US Dollar. The price broke the $115.00 resistance zone to move into a positive zone.
The price even cleared the $120.00 level and settled above the 50 hourly simple moving average. A high was formed near $126.5 and the price started a downside correction. It traded below $115.00, but the bulls are active near $100.00.
There was another increase, but the price failed to clear the $112.00 zone. It started a fresh decline below $110.00. There was a break below a short-term ascending channel with support near $108.10 on the hourly chart of XTI/USD.
It is now consolidating near the $102.00 level. The next major support is near the $100.00 level, below which there is a risk of a larger decline. In the stated case, the price might slide towards the $92.50 support zone.
On the upside, the price is facing resistance near the $105.50 level. It is near the 38.2% Fib retracement level of the recent decline from the $111.81 swing high to $101.89 low.
The next key resistance is near the $106.85 level or the 50% Fib retracement level of the recent decline from the $111.81 swing high to $101.89 low, above which the price might accelerate higher towards $115.00.
This forecast represents FXOpen Markets Limited opinion only, it should not be construed as an offer, invitation or recommendation in respect to FXOpen Markets Limited products and services or as financial advice.
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