Gold price failed to clear the $1,900 resistance and declined towards $1,855. Conversely, crude oil price is rising and it is showing positive signs above $41.50.

Important Takeaways for Gold and Oil

• Gold price declined below the $1,880 and $1,865 support levels against the US Dollar.
• There is a major bearish trend line forming with resistance near $1,878 on the hourly chart of gold.
• Crude oil price is currently consolidating gains above the $41.00 and $41.50 support levels.
• There is a key bullish trend line forming with support near $41.60 on the hourly chart of XTI/USD.

Gold Price Technical Analysis

Gold price topped near the $1,900 level and started a steady decline against the US Dollar. The price broke the $1,895 and $1,880 support levels to move into a bearish zone.

The price even broke the $1,865 support level and settled well below the 50 hourly simple moving average. It traded close to the $1,850 level and a low is formed near the $1,852 on FXOpen. The price is currently correcting higher and trading above $1,860.

There was a break above the 38.2% Fib retracement level of the recent decline from the $1,884 swing high to $1,852 low. The price is now facing hurdles near the $1,865 and $1,868 levels.

The 50% Fib retracement level of the recent decline from the $1,884 swing high to $1,852 low is also acting as a resistance along with the 50 hourly simple moving average. More importantly, there is a major bearish trend line forming with resistance near $1,878 on the hourly chart of gold.

To start a decent recovery, the price must break the $1,868 level and the 50 hourly simple moving average. In the stated case, there are chances of an upside break above the trend line resistance and $1,880. The next major resistance sits at $1,895, followed by $1,900.

Conversely, the price could start a fresh decline below the $1,855 level. The next major support is near $1,850, below which there is a risk of a sharp decline towards $1,820.

Oil Price Technical Analysis

Crude oil price remained well bid above the $40.00 level and it climbed higher steadily against the US Dollar. The price broke the $41.00 resistance level to move further into a positive zone.

There was also a close above the $41.50 level and the 50 hourly simple moving average. The price tested the $42.60 resistance zone and a high was formed near $42.65 before the price corrected lower.

oil

It traded as low as $41.31 and it is currently rising. An initial resistance is near the $42.00 level. It coincides with the 50% Fib retracement level of the recent decline from the $42.65 high to $41.31 low.

The first major resistance is near the $41.35 level or the 76.4% Fib retracement level of the recent decline from the $42.65 high to $41.31 low. A close above the $41.35 resistance might increase the chances of more upsides above $41.65 and $42.00 in the near term.

On the downside, there is a key bullish trend line forming with support near $41.60 on the hourly chart of XTI/USD. A break below the trend line support could lead the price towards the $41.00 support or even $40.40.

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