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.
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.
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.