Gold price gained traction and surged above the $1,880 resistance. Similarly, crude oil price is showing positive signs above $40.00 and it might continue to rise.
Important Takeaways for Gold and Oil
- Gold price extended its rise and traded to a new multi-year high above $1,885 against the US Dollar.
- There is a major bullish trend line forming with support near $1,830 on the daily chart of gold.
- Crude oil price remained in a positive zone and it surpassed the $40.00 resistance.
- There was a break above a key bearish trend line with resistance near $33.50 on the daily chart of XTI/USD.
Gold Price Technical Analysis
Gold price started a strong increase from the $1,500 support zone against the US Dollar. There was a clear break above the $1,600 and $1,800 resistance levels.
The price accelerated its gains above the $1,850 level and settled well above the 50-day simple moving average. It traded to a new multi-year high at $1,888 on FXOpen and it is currently consolidating gains.
An initial support on the downside is near the $1,865 level. It is close to the 23.6% Fib retracement level of the upward move from the $1,790 low to $1,888 high. The main support on the downside is forming near the $1,850 level.
There is also a major bullish trend line forming with support near $1,830 on the daily chart of gold. An intermediate support could be near the $1,840 level or the 50% Fib retracement level of the upward move from the $1,790 low to $1,888 high.
Any further losses may perhaps open the doors for a larger decline towards the $1,810 and $1,800 levels in the near term. On the upside, an initial resistance is near the $1,890 level.
The first major resistance is near the $1,900 level. A clear break above the $1,900 barrier might call for a new all-time high in the coming days.
Oil Price Technical Analysis
Crude oil price started a strong recovery after it settled above the $30.00 level against the US Dollar. The price gained momentum and broke the $32.00 and $35.00 resistance levels.
During the rise, there was a break above a key bearish trend line with resistance near $33.50 on the daily chart of XTI/USD. The price even surpassed the 50% Fib retracement level of the main decline from the $65.42 high to $11.05 swing low.
It is now trading nicely above the $38.00 support and the 50-day simple moving average. The first resistance on the upside is near the $44.50 and $44.60 levels.
The 61.8% Fib retracement level of the main decline from the $65.42 high to $11.05 swing low is also near the $44.65 level. A successful break above the $44.65 level might call for a strong push towards the $50.00 resistance in the near term.
Any further gains could lead the price towards the $52.00 level. On the downside, the first key support is seen near the $40.0 level.
The main support is forming near the $38.20 level and the 50-day simple moving average. Any further losses may perhaps start a strong decline below $38.00. The next target for the bears might be the $35.00 support zone.
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