Gold Price Could Correct Lower, Crude Oil Price Breaks Key Support

FXOpen

Gold price climbed higher and traded above the $1,750 resistance. Crude oil price declined below the $86.00 and $83.80 support levels.

Important Takeaways for Gold and Oil

· Gold price found support near the $1,700 level and started a fresh increase against the US Dollar.

· There was a break below a key bullish trend line with support near $1,772 on the hourly chart of gold.

· Crude oil price gained bearish momentum below the $86.00 support zone.

· There is a major bearish trend line forming with resistance near $84.40 on the hourly chart of XTI/USD.

Gold Price Technical Analysis

Gold price formed a base above the $1,700 level against the US Dollar. The price started a fresh increase and was able to clear the $1,720 and $1,740 resistance levels.

There was a clear move above the $1,750 resistance and the 50 hourly simple moving average. The price even broke the $1,780 level and traded as high as $1,786 on FXOpen. Recently, there was a downside correction below the $1,775 level.

Gold Price Hourly Chart

The price traded below the 23.6% Fib retracement level of the upward move from the $1,702 swing low to $1,786 high. Besides, there was a break below a key bullish trend line with support near $1,772 on the hourly chart of gold.

An immediate support on the downside is near the $1,755 level. The next major support is near the $1,745 level or the 50% Fib retracement level of the upward move from the $1,702 swing low to $1,786 high, below which there is a risk of a larger decline.

In the stated case, the price could decline sharply towards the $1,722 support zone. On the upside, the first major resistance is near the $1,770 level.

The main resistance is now forming near the $1,785 level, above which it could even test $1,800. A clear upside break above the $1,800 resistance could send the price towards $1,840.

Oil Price Technical Analysis

Crude oil price attempted an upside break above the $90.00 resistance against the US Dollar. The price failed to gain pace and started a fresh decline below $88.00.

There was a clear move below the $86.00 and $85.00 support levels. The price even gained pace below the $83.80 support and the 50 hourly simple moving average. Finally, the bulls were active near the $81.20 support.

It is now consolidating and trading near the $82.25 zone. The first major resistance is near the $82.80 level. It is near the 23.6% Fib retracement level of the downward move from the $88.05 swing high to $81.15 low.

The main resistance sits near the $84.50 level. There is also a major bearish trend line forming with resistance near $84.40 on the hourly chart of XTI/USD.

The trend line is near the 50% Fib retracement level of the downward move from the $88.05 swing high to $81.15 low, above which the price might accelerate higher towards $86.00 or even $88.00.

On the downside, an immediate support is near the $81.25 level. The next major support is near the $80.00 level. If there is a downside break, the price might decline towards $78.00. Any more losses may perhaps open the doors for a move towards the $75.00 support zone.

This forecast represents FXOpen Companies opinion only, it should not be construed as an offer, invitation or recommendation in respect to FXOpen Companies products and services or as financial advice.

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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.

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