Gold Price Could Dip While Crude Oil Price Trades In Range
Gold price is struggling to stay above the $1,925 support. Crude oil price is facing a strong resistance near the $82 zone.
Important Takeaways for Gold and Oil
· Gold price started a strong increase and tested $1,950 against the US Dollar.
· There is a key bullish trend line forming with support near $1,925 on the hourly chart of gold.
· Crude oil price started a fresh increase from the $79.50 support zone.
· There is a major bullish trend line forming with support near $80.40 on the hourly chart of XTI/USD.
Gold Price Technical Analysis
Gold price formed a base above the $1,900 level against the US Dollar. The price started a strong increase above the $1,915 and $1,920 resistance levels to move into a positive zone.
The bulls even pumped the price above the $1,940 and the 50 hourly simple moving average. The price even tested the $1,950 zone. A high is formed near $1,949 on FXOpen and the price is now correcting gains.
There was a move below the $1,940 level and the 50 hourly simple moving average. The price even dipped below the $1,920 level before the bulls appeared.
Recently, there was a recovery wave above the 23.6% Fib retracement level of the downward move from the $1,949 swing high to $1,918 low. However, the bears are active below the $1,935 level and the 50 hourly simple moving average.
The price failed to clear the 50% Fib retracement level of the downward move from the $1,949 swing high to $1,918 low. It is now moving lower below $1,930.
An immediate support on the downside is near the $1,925 level. There is also a key bullish trend line forming with support near $1,925 on the hourly chart of gold. The next major support is near the $1,915 level, below which there is a risk of a larger decline. In the stated case, the price could decline sharply towards the $1,900 support zone.
On the upside, the first major resistance is near the $1,930 level. The next key hurdle is near the $1,935 level, above which it could even test $1,950. A clear upside break above the $1,950 resistance could send the price towards $1,965.
Oil Price Technical Analysis
Crude oil price also started a fresh increase from the $79.50 support zone against the US Dollar. The price was able to clear the $81.00 and $81.20 resistance levels.
The bulls were able to pump the price above the 50% Fib retracement level of the downward move from the $82.65 swing high to $79.51 low. The price even gained pace above the $81.50 level and the 50 hourly simple moving average.
Finally, the bears appeared near the $82.00 level. It failed to clear the 76.4% Fib retracement level of the downward move from the $82.65 swing high to $79.51 low.
On the downside, an immediate support is near the $81.00 level. The next major support is near the $80.40 level. There is also a major bullish trend line forming with support near $80.40 on the hourly chart of XTI/USD.
If there is a downside break, the price might decline towards $79.50. Any more losses may perhaps open the doors for a move towards the $78.00 support zone.
On the upside, the price might face resistance near $81.80. The first major resistance is near the $82.00 level. The main resistance sits near the $82.65 level, above which the price might accelerate higher towards $84.00 or even $85.00.
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.