Gold price is forming a new support base above the $1,900 level. Crude oil price is currently rising and eyeing an upside break above the $43.30 resistance.
Important Takeaways for Gold and Oil
- Gold price declined below the $1,950 level, but it found support above $1,900 against the US Dollar.
- There is a key bearish trend line forming with resistance near $1,942 on the hourly chart of gold.
- Crude oil price is currently trading in a positive zone above the $42.40 support zone.
- There is a major declining channel forming with resistance near $43.30 on the hourly chart of XTI/USD.
Gold Price Technical Analysis
Gold price started a bearish wave below the $2,000 level against the US Dollar. The price broke the $1,950 support level to move into a short-term bearish zone.
The price even traded below the $1,920 level, but it found support above $1,900. The recent low is formed near $1,909 on FXOpen and the price is currently correcting higher.
It broke the $1,920 and $1,930 resistance levels. There was also a break above the 38.2% Fib retracement level of the recent decline from the $1,976 high to $1,909 low, and the 50 hourly simple moving average.
On the upside, the price is facing a major resistance near $1,940 and $1,950. There is also a key bearish trend line forming with resistance near $1,942 on the hourly chart of gold.
The trend line coincides with the 50% Fib retracement level of the recent decline from the $1,976 high to $1,909 low. If there is a clear break above the $1,940 and $1,950 resistance levels, the price could continue to rise.
The next major resistance is near $1,975, followed by $1,980. Conversely, the price might fail to surpass the $1,950 resistance. An initial support on the downside is near the $1,935 level and the 50 hourly SMA.
The next major support is near the $1,920 level, below which the price might struggle to stay above the $1,900 support zone in the coming sessions.
Oil Price Technical Analysis
Crude oil price started a fresh increase above the $41.20 and $41.50 resistance levels against the US Dollar. The price even broke the $42.40 resistance zone to move into a positive zone.
It traded as high as $43.84 and recently declined sharply below $43.00. There was also a break below the $42.80 level and the 50 hourly simple moving average. It traded as low as $42.46 and currently correcting higher.
There was a break above the $42.80 level, and the 38.2% Fib retracement level of the recent decline from the $43.84 high to $42.46 low. The price is now facing hurdles near the $43.15 and $43.20 levels.
There is also a major declining channel forming with resistance near $43.30 on the hourly chart of XTI/USD. The channel resistance is close to the 50% Fib retracement level of the recent decline from the $43.84 high to $42.46 low.
Therefore, a clear break above the trend line resistance is needed for a decent increase above the $43.50 level. Conversely, oil price might start a fresh decline below the $43.00 level. The main support on the downside is near $42.40, below which the price might even break $42.00.
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