Gold Price and Oil Price Approaching Next Key Break
Gold price started a fresh decline after it failed to clear the $1,930 resistance. Crude oil price is currently holding the $40.50 support and eyeing the next key break.
Important Takeaways for Gold and Oil
- Gold price extended its rise towards $1,930 before correcting lower against the US Dollar.
- There is a major bullish trend line forming with support near $1,900 on the hourly chart of gold.
- Crude oil price formed a strong support near the $39.75 level before climbing higher.
- There is a key bearish trend line forming with resistance near $40.80 on the hourly chart of XTI/USD.
Gold Price Technical Analysis
Gold price followed a bullish path above the $1,900 support level and started a fresh increase against the US Dollar. The price broke the $1,915 and $1,920 resistance levels.
However, the price struggled to clear the $1,930 resistance zone. A high was formed near $1,931 on FXOpen before the price started a fresh decline. There was a break below the $1,910 support level and the 50 hourly simple moving average.
The decline was such that the price spiked below the $1,900 support and traded as low as $1,894. Recently, there was a recovery wave above the $1,900 level.
The price even climbed above the 23.6% Fib retracement level of the recent decline from the $1,931 high to $1,894 low. The price is now facing hurdles near the $1,905 and $1,908 levels.
It seems like there is a major bullish trend line forming with support near $1,900 on the hourly chart of gold. If there is a downside break below the trend line support, the price could decline sharply. The next major support is near the $1,895 level, below which the bears might aim a test of $1,880.
Conversely, a clear break above the $1,908 and $1,910 resistance levels could open the doors for a fresh increase. The next key resistance is near the $1,915 level and the 50 hourly simple moving average, above which the price might revisit the $1,930 resistance zone.
Oil Price Technical Analysis
Crude oil price remained well bid above the $39.50 and $39.75 support levels against the US Dollar. As a result, there was a fresh increase and the price climbed above $40.00.
The price gained pace above the $40.50 resistance level, plus the 50% Fib retracement level of the downward move from the $41.90 high to $39.76 low. The price even spiked above the $40.80 resistance and the 50 hourly simple moving average.
However, the bulls struggled to gain pace above the $41.00 resistance level. It seems like the bears defended the 61.8% Fib retracement level of the downward move from the $41.90 high to $39.76 low.
The price is currently consolidating above the $40.60 and $40.50 support levels. There is also a key bearish trend line forming with resistance near $40.80 on the hourly chart of XTI/USD.
If there is a downside break below the $40.50 support level, the price is likely to restart its decline. The next major support is at $40.00, followed by $39.75.
On the upside, a clear break above the trend line resistance and then a follow up move above $41.00 is must for more gains in the coming sessions.