Gold Price And Crude Oil Price Could Extend Declines

FXOpen

Gold price climbed higher once again, but it failed to surpass the $1,437 resistance area. Crude oil price is currently correcting higher, but it is facing a lot of hurdles on the upside.

Important Takeaways for Gold and Oil

  • Gold price started a downside correction after topping near the $1,437 level against the US Dollar.
  • There is a major bullish trend line forming with support near $1,415 on the hourly chart of gold.
  • Crude oil price started a decent recovery after it tested the key $56.00 support area.
  • There is a key bearish trend line forming with resistance near $56.80 on the hourly chart of XTI/USD.

Gold Price Technical Analysis

Gold price gained traction this week and climbed above the $1,410 and $1,420 resistance levels against the US Dollar. The price even broke the $1,430 resistance level, but it struggled to climb further higher.

A swing high was formed near $1,437 on FXOpen and the price recently started a downside correction. It broke the $1,425 and $1,420 support levels. It tested the $1,410 level and it is currently recovering higher.

Gold Price Technical Analysis

There was a break above the 23.6% Fib retracement level of the recent decline from the $1,437 high to $1,410 low. The price remained above the $1,415 level and the 50 hourly simple moving average.

However, the price struggled to clear the $1,425 resistance plus the 50% Fib retracement level of the recent decline from the $1,437 high to $1,410 low.

At the moment, the price is trading just above the $1,415 support area. There is also a major bullish trend line forming with support near $1,415 on the hourly chart of gold. If there is a downside break below the trend line and the 50 hourly simple moving average, the price could revisit the $1,410 support area.

On the upside, there is a strong resistance near the $1,422 and $1,425 levels. If there is a break above the $1,425 resistance, the price could accelerate above the $1,430 level in the near term.

Oil Price Technical Analysis

After topping near the $60.20 level, crude oil price started a strong decline against the US Dollar. The price broke the $59.50 and $58.00 support levels to move into a bearish zone.

The decline was such that the price settled below the $57.50 support and 50 hourly simple moving average. It traded close to the $56.00 support area and a swing low was formed near the $56.09.

Oil Price Technical Analysis

Recently, it corrected higher above the $56.50 resistance and the 23.6% Fib retracement level of the recent decline from the $59.42 high to $56.09 low. However, the upside move was capped by the $57.50 resistance.

Moreover, the price failed to test the 50% Fib retracement level of the recent decline from the $59.42 high to $56.09 low. There is also a key bearish trend line forming with resistance near $56.80 on the hourly chart of XTI/USD.

If there is an upside break above the trend line and the 50 hourly SMA, the price could recover towards the $57.50 or $58.00 resistance.

On the downside, the main supports are near $56.40 and $56.10, below which crude oil price might decline sharply below $56.00. The next major support is near the $55.00 level.

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This article represents the opinion of the Companies operating under the FXOpen brand only. It is not to be construed as an offer, solicitation, or recommendation with respect to products and services provided by the Companies operating under the FXOpen brand, nor is it to be considered financial advice.

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