Gold Price and Crude Oil Price Extend Gains

Gold price started a fresh increase after it tested the $1,780 support. Crude oil price is rising and it is trading above the $65.00 support zone.

Important Takeaways for Gold and Oil

· Gold price started a decent increase from the $1,780 support zone against the US Dollar.

· There was a break above a key bearish trend line with resistance near $1,792 on the hourly chart of gold.

· Crude oil price started a fresh increase from the $61.50 support zone.

· There is a major contracting triangle forming with resistance near $68.00 on the hourly chart of XTI/USD.

Gold Price Technical Analysis

Gold price formed a strong support base above the $1,780 zone against the US Dollar. As a result, the price started a fresh increase above the $1,785 and $1,790 resistance levels.

There was a break above a key bearish trend line with resistance near $1,792 on the hourly chart of gold. The price surpassed the 50% Fib retracement level of the downward move from the $1,809 swing high to $1,780 swing low (formed on FXOpen).

The price is now trading above $1,790 and the 50 hourly simple moving average. An immediate resistance is near the $1,798 and $1,800 levels.

The 50% Fib retracement level of the downward move from the $1,809 swing high to $1,780 swing low is also near the $1,798 level. A close above the $1,798 and $1,800 levels could open the doors for a steady increase towards $1,820.

Conversely, the price might correct lower below $1,795. An initial support on the downside is near the $1,790 level and the 50 hourly simple moving average. The first major support is near the $1,780 level.

A downside break below the $1,780 support zone may possibly spark a sharp decline. In the stated case, the price could test the $1,750 support.

Oil Price Technical Analysis

Crude oil price started a major decline from well above the $70.00 level against the US Dollar. The price broke the $65.00 support, but it remained above the $60.00 zone.

A low was formed near $61.68 before the price started a fresh increase. The price surpassed the $65.00 resistance and the 50 hourly simple moving average. It opened the doors for more gains above the $66.50 and $67.00 levels.

The price traded as high as $68.45 and it is now consolidating gains. There is also a major contracting triangle forming with resistance near $68.00 on the hourly chart of XTI/USD.

An initial support on the downside is near the $67.70 level. The first major support is near the $67.50 level and the 50 hourly simple moving average. If there is a downside break, the price could extend its decline towards the $66.00 level in the coming sessions.

The next major support is near the $65.00 zone. It is close to the 50% Fib retracement level of the upward move from the $61.68 swing low to $68.45 high.

An immediate resistance on the upside is near the $68.00 level. The first key resistance is near the $68.40 level. A clear break above the triangle trend line could lead the price towards the $70.00 resistance level. The next key resistance sits near the $72.00 level.

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.