Gold price gained bullish momentum above $1,825 before correcting lower. Crude oil price is holding the $87.50 support and might start a fresh increase.
Important Takeaways for Gold and Oil
· Gold price started a major increase above the $1,800 and $1,820 levels against the US Dollar.
· There was a break below a key bullish trend line with support near $1,835 on the hourly chart of gold.
· Crude oil price corrected lower, but it found support near $87.50.
· There was a break above a major bearish trend line with resistance near $88.85 on the hourly chart of XTI/USD.
Gold Price Technical Analysis
Gold price formed a support base near $1,788 and started a fresh increase against the US Dollar. The price gained pace for a move above the $1,800 level to move into a positive zone.
There was a clear move above the $1,820 level and the 50 hourly simple moving average. The price even climbed above the $1,835 resistance level. A high was formed near $1,841 on FXOpen before the price started a downside correction.
There was a break below the $1,835 level. Besides, there was a break below a key bullish trend line with support near $1,835 on the hourly chart of gold.
The price traded below the 23.6% Fib retracement level of the upward move from the $1,788 swing low to $1,841 high. On the downside, an initial support is near the $1,820 level. The first major support is near the $1,815 level.
It is near the 50% Fib retracement level of the upward move from the $1,788 swing low to $1,841 high. If there is a downside break below the $1,815 level, the price could decline to $1,800.
On the upside, the price is facing resistance near the $1,830 level. The main resistance is now forming near the $1,840 level. A close above the $1,840 level could open the doors for a steady increase towards $1,850. The next major resistance sits near the $1,865 level.
Oil Price Technical Analysis
Crude oil price started a steady increase from the $88.50 support zone against the US Dollar. The price broke the $90.00 resistance zone to move into a positive zone.
The price even cleared the $91.00 level and settled above the 50 hourly simple moving average. A high was formed near $91.75 and the price started a downside correction. It traded below $90.00, but the bulls are active near $87.50.
It is now rising and trading above $88.50. There was a break above the 50% Fib retracement level of the recent decline from the $91.75 swing high to $87.41 low.
Besides, there was a break above a major bearish trend line with resistance near $88.85 on the hourly chart of XTI/USD. However, the price struggled to clear the 61.8% Fib retracement level of the recent decline from the $91.75 swing high to $87.41 low.
It is now consolidating near $88.50. The next major support on is near the $87.50 level, below which there is a risk of a larger decline. In the stated case, the price might slide towards the $85.50 support zone.
On the upside, the price is facing resistance near the $90.00 level. The next key resistance is near the $91.20 level, above which the price might accelerate higher towards $92.50.
This forecast represents FXOpen Markets Limited opinion only, it should not be construed as an offer, invitation or recommendation in respect to FXOpen Markets Limited products and services or as financial advice.
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