Gold Price Broke Key Support While Oil Price Continues to Rise

FXOpen

Gold price faced a strong resistance near $1,235 and declined sharply. However, Crude oil price remains in an uptrend and it looks set for more gains above $70.00.

Important Takeaways for Gold and Oil

  • Gold price likely formed a double top pattern near the $1,265 level against the US Dollar.
  • There was a break below a key bullish trend line with support at $1,226 on the hourly chart of gold.
  • Crude oil price is following a crucial ascending channel with support at $68.80 on the hourly chart.
  • The US Durable Goods Orders in June 2018 increased 1%, less than the forecast of +3.0%.

Gold Price Technical Analysis

Gold price climbed higher this week above the $1,230 level against the US Dollar. However, the price faced a major resistance near the $1,235 level, which prevented further upsides.

There were two rejections noted around the $1,235 resistance, resulting in a downside move. There was a sharp decline and the price broke the $1,228 support. Moreover, there was a break below a key bullish trend line with support at $1,226 on the hourly chart.

Gold Price Technical Analysis Chart

The price even broke the 50% Fib retracement level of the last wave from the $1,218 low to $1,235 high. It seems like the price formed a double top pattern near the $1,265 level. At present, it is holding the 76.4% Fib retracement level of the last wave from the $1,218 low to $1,235 high at $1,222.

Should there be a downside break below $1,222, the price may perhaps decline further towards the $1,218 low. Below this, there are chances of acceleration towards the $1,210 level in the near term.

On the other hand, if the price corrects higher, the previous support near $1,228 and the 50 hourly simple moving average are likely to act as resistances. Above this, the double top resistance near $1,235 could once again prevent gains.

Oil Price Technical Analysis

Crude oil price started a major uptrend from the $66.00 support zone against the US Dollar. The price traded higher and broke the $66.50, $67.00 and $68.00 resistance levels.

The price is accelerating higher and is currently trading well above the $68.50 level and the 50 hourly simple moving average. More importantly, there is a crucial ascending channel formed with support at $68.80 on the hourly chart.

Oil Price Technical Analysis Chart

The price recently traded as high as $69.47 where it faced a connecting resistance trend line. It corrected lower and tested the 50% Fib retracement level of the last wave from the $68.52 low to $69.47 high.

On the downside, there are many supports around the $68.80 level. The 50 hourly SMA is positioned near the channel support at $68.80 to act as a strong buy zone. Therefore, if the price dips towards $68.80, it is likely to find buyers.

Should there be a break below $68.80, the price may perhaps decline further towards $68.00. To the topside, a break above the trend line resistance at $69.50 could open the doors for a push above the $70.00 level in the near term.

Recently in the US, the Durable Goods Orders report for June 2018 was released. The market was looking for a rise of 3% in the Durable Goods Orders, but the actual result was disappointing as there was a 1% rise in orders.

Trade over 50 forex markets 24 hours a day with FXOpen. Take advantage of low commissions, deep liquidity, and spreads from 0.0 pips. Open your FXOpen account now or learn more about trading forex with FXOpen.

This article represents the opinion of the Companies operating under the FXOpen brand only. It is not to be construed as an offer, solicitation, or recommendation with respect to products and services provided by the Companies operating under the FXOpen brand, nor is it to be considered financial advice.

Latest from Forex Analysis

NZD/USD Exchange Rate Falls from Nearly 5-Month High Market Analysis: GBP/USD and EUR/GBP Poised For More Losses Dollar Falls After Inflation Data: Is a Change in Medium-Term Trends on the Horizon? USD/CAD Retracts from Nearly 2-Month High Market Analysis: EUR/USD Dives While USD/JPY Continues To Rise

Latest articles

Financial Market News

Weekly Market Wrap With Gary Thomson: S&P 500 Index, US Dollar, FTSE 100 Index, Gold Price

Get the latest scoop on the week's hottest headlines, all in one convenient video. Join Gary Thomson, the COO of FXOpen UK, as he breaks down the most significant news reports and shares his expert insights.

  • S&P 500
Indices

European Stock Indices Decline Amid Political Uncertainty

Today, the Eurostoxx 50 index (Europe 50 on FXOpen) has dropped below the early May minimum, reflecting escalating market concerns over the upcoming French elections, as reported by Reuters. Finance Minister Bruno Le Maire's acknowledgment that the current political crisis

Forex Analysis

NZD/USD Exchange Rate Falls from Nearly 5-Month High

The NZD/USD exchange rate has dropped from its highest level in nearly five months. On Wednesday, following the release of US inflation data, the NZD/USD rate exceeded 0.6220 for the first time since 15 January 2024.

However,

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 60% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money.