Gold price is facing a strong resistance near the $1,950 and $1,960 levels. Crude oil price is currently declining and it may perhaps continue lower below $37.00.
Important Takeaways for Gold and Oil
- Gold price started a decent recovery from $1,910, but struggled near $1,960 against the US Dollar.
- There is a key rising channel forming with support near $1,938 on the hourly chart of gold.
- Crude oil price is currently sliding and it is trading below the $40.00 support zone.
- There is a major bearish trend line forming with resistance near $37.70 on the hourly chart of XTI/USD.
Gold Price Technical Analysis
After a strong decline, gold price found support near the $1,910 level against the US Dollar. The price started a fresh increase above the $1,925 and $1,935 resistance levels.
It even broke the $1,950 resistance level and the 50 hourly simple moving average. However, the bears defended the $1,960 resistance area. A high is formed near $1,966 on FXOpen and the price is currently declining.
There was a break below the $1,950 support level. The price even traded below the 50% Fib retracement level of the upward move from the $1,920 swing low to $1,966 swing high.
The price is now testing the $1,938 support level, and the 61.8% Fib retracement level of the upward move from the $1,920 swing low to $1,966 swing high. There is also a key rising channel forming with support near $1,938 on the hourly chart of gold.
If there is a downside break below the channel support at $1,938, there is a risk of more losses. The next major support is near the $1,925 level, below which the price is likely to revisit the $1,910 support zone.
On the upside, the price is facing a major resistance near $1,950 and $1,960. A close above the $1,960 resistance zone could open the doors for a larger upward move towards the $1,980 and $1,985 resistance levels in the near term.
Oil Price Technical Analysis
Crude oil price started a nasty decline from well above the $42.00 support against the US Dollar. The price even broke the $40.00 support zone to move into a negative zone.
The decline gained pace below the $39.00 support and the 50 hourly simple moving average. It traded as low as $36.41 and recently started an upside correction. There was a break above the $38.00 resistance level.
The price even climbed above the 50% Fib retracement level of the recent decline from the $39.68 high to $36.41 low. However, the bears are defending the $38.50 and $38.70 levels.
There is also a major bearish trend line forming with resistance near $37.70 on the hourly chart of XTI/USD. The price also faced sellers near the 61.8% Fib retracement level of the recent decline from the $39.68 high to $36.41 low.
It is currently declining and trading below the $38.00 level. An initial support on the downside is near the $37.20 level. If there is a downside break below $37.20 and $37.00, there is a risk of more losses below the $35.00 support.
Conversely, oil price might break the trend line resistance and $38.00 to start a fresh recovery. However, the bulls need to push it above $40.00 to start a sustained upward move.
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