Gold Price Climbing While Crude Oil Price Is Declining

FXOpen

Gold price started a decent upward move after forming a support base near $1,274. Crude oil price declined heavily and it remains at a risk of more losses below $55.00

Important Takeaways for Gold and Oil

  • Gold price started a nice upward move after testing the $1,274 support against the US Dollar.
  • There was a break above a major bearish trend line with resistance at $1,284 on the hourly chart of gold.
  • Crude oil price declined sharply and traded below the $62.00 and $60.00 support levels.
  • There was a break below a bearish flag pattern with support at $58.40 on the hourly chart of XTI/USD.

Gold Price Technical Analysis

Gold price found support near the $1,270 level and recently started an upward move against the US Dollar. The price settled above the $1,274 pivot level and extended gains above the $1,280 level.

The recent rise was positive above the $1,285 and $1,290 resistance levels. Moreover, there was a close above the $1,285 level and the 50 hourly simple moving average.

Gold Price Technical Analysis Chart

During the upward move, there was a break above a major bearish trend line with resistance at $1,284 on the hourly chart of gold. The price traded above the $1,290 level and recently traded close to the $1,294 level on FXOpen.

At the moment, the price is correcting lower towards $1,288. An initial support is near the 23.6% Fib retracement level of the recent wave from the $1,275 swing low to $1,294 high.

However, the main support is near the $1,288 level (the recent resistance area). The next support is near the $1,286 level and the 38.2% Fib retracement level of the recent wave from the $1,275 swing low to $1,294 high.

If there are more losses, the price might test the $1,285 support or the 50 hourly SMA. On the upside, if the price breaks the $1,294 and $1,295 levels, it could test the $1,300 resistance area.

Oil Price Technical Analysis

Crude oil price started a strong decline from well above the $64.00 level against the US Dollar. The price broke the key $62.40 support level to enter a bearish zone and start a downtrend.

The decline was strong as the price cleared the $60.00 support level and settled below the 50 hourly simple moving average. During the decline, there was a break below a bearish flag pattern with support at $58.40 on the hourly chart of XTI/USD.

Oil Price Technical Analysis Chart

There was a decent recovery from the $57.00 support and the price revisited the $59.50 level. However, the price struggled to clear the $59.50 and $60.00 resistance levels.

Finally, there was a fresh decline below the $58.00 and $57.00 levels. A new weekly low was formed near the $55.71 level and the price is currently trading in a bearish zone.

An initial resistance is near the $56.65 level and the 23.6% Fib retracement level of the recent decline from the $59.69 high to $55.71 low. More importantly, the previous support level is near the $57.00 level is likely to act as a crucial barrier.

Above $57.00, the main resistance is near the $57.70 level, and the 50% Fib retracement level of the recent decline from the $59.69 high to $55.71 low.

On the downside, an initial support is near the $55.70 level, below which the price is likely to accelerate below the $55.00 support level.

Trade global forex with the Innovative Broker of 2022*. Choose from 50+ forex markets 24/5. Open your FXOpen account now or learn more about trading forex with FXOpen.

* FXOpen International, Innovative Broker of 2022, according to the IAFT

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

EUR/USD Analysis: Price Reaches the Level of 1.1000 Market Analysis: EUR/USD Extends Rally While USD/JPY Nosedives USD/JPY, GBP/USD, and EUR/USD Market Analysis: The US Dollar Continues to Fall Market Analysis: Australian Dollar Reaches Its Highest Since Early August Market Analysis: GBP/USD Rallies While EUR/GBP Slides Below Support

Latest articles

Trader’s Tools

Fibonacci Retracement Strategies

Fibonacci retracements are a cornerstone in the toolkit of many traders, offering a mathematical approach to identifying potential areas where reversals may occur. This article delves into the intricacies of using Fibonacci retracements, covering everything from basic understanding to strategies

Trader’s Tools

What Is Contrarian Trading?

Contrarian trading challenges the traditional buy-low, sell-high paradigm by going against prevailing market trends. This article delves into the principles, psychology, and tools that shape this approach, offering insights for traders seeking to tap into overlooked or undervalued opportunities. The

Forex Analysis

EUR/USD Analysis: Price Reaches the Level of 1.1000

Before yesterday's trading session, the last time 1 euro was 1.1 USD was in the first half of August. The growth of the rate was facilitated by the weakening of the dollar, which occurred against the background of the

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.