Gold Price and Oil Price Could Correct Recent Gains
Gold price started a fresh increase and surged towards the $1,950 resistance. Crude oil price also gained pace and it is currently correcting lower from $39.50.
Important Takeaways for Gold and Oil
- Gold price rallied towards the $1,950 resistance and currently correcting gains against the US Dollar.
- Earlier, there was a break above a major contracting triangle with resistance near $1,910 on the hourly chart of gold.
- Crude oil price seems to be facing a strong resistance near $39.50 and $40.00.
- There was a break below a key bullish trend line with support near $39.00 on the hourly chart of XTI/USD.
Gold Price Technical Analysis
Gold price started a strong increase from the $1,880 support zone against the US Dollar. The price broke the $1,895 and $1,900 resistance levels to move into a positive zone.
More importantly, there was a break above a major contracting triangle with resistance near $1,910 on the hourly chart of gold. It opened the doors for a sharp rise and the price rallied above $1,920.
There was also a close above $1,925 and the 50 hourly simple moving average. It even tested the $1,950 resistance and high is formed near $1,952 on FXOpen. The price is currently correcting gains and trading below $1,945.
An initial support is near the $1,938 level. It is close to the 23.6% Fib retracement level of the recent rise from the $1,893 swing low to $1,952 high.
The next major support is near the $1,920 level or the 50% Fib retracement level of the recent rise from the $1,893 swing low to $1,952 high. Any further losses could lead the price towards the $1,915 support zone (the recent breakout zone, resistance turned support).
Conversely, the price could start a fresh increase above $1,945. The next key resistance is near the $1,950 level, above which the price might rally towards the $1,965 level in the near term.
Oil Price Technical Analysis
Crude oil price found support near the $33.80 level after a massive decline against the US Dollar. As a result, there was a fresh recovery wave above the $35.00 and $36.50 resistance levels.
The price gained pace above the $37.00 resistance level and the 50 hourly simple moving average. However, the bulls seem to be facing a strong resistance near $39.50 and $40.00. There were more than two attempts to gain strength above $39.50, but the bulls failed.
A high is formed near $39.53 and the price is currently correcting lower. There was a break below the $39.00 support and the 50 hourly simple moving average. There was also a break below a key bullish trend line with support near $39.00 on the hourly chart of XTI/USD.
The price is now testing the 23.6% Fib retracement level of the recent increase from the $32.79 swing low to $39.53 high. An initial support on the downside is near the $37.80 level.
The first major support is near the $36.65 level since it is close to the 50% Fib retracement level of the recent increase from the $32.79 swing low to $39.53 high. Any further losses may perhaps lead the price towards the $35.00 support level in the near term.
On the upside, an initial hurdle for the bulls is near the $38.80 level and the 50 hourly SMA. However, a clear break above the $39.50 and $40.00 levels is must for a strong increase.