Gold Price Dives While Crude Oil Price Keeps Struggling
Gold price started a fresh decline below the $1,720 support zone. Crude oil price is also struggling and remains at a risk of more losses.
Important Takeaways for Gold and Oil
· Gold price started a fresh decline after it failed to stay above $1,735 against the US Dollar.
· There is a key bearish trend line forming with resistance near $1,705 on the hourly chart of gold.
· Crude oil price also started a steady decline from the $97.25 zone.
· There was a break below a couple of bullish trend lines with support near $94.80 and $91.90 on the hourly chart of XTI/USD.
Gold Price Technical Analysis
Gold price attempted to gain pace above the $1,760 level against the US Dollar. However, the price failed to stay above $1,750 and started a fresh decline.
There was a clear move below the $1,735 support zone and the 50 hourly simple moving average. The price declined below the $1,720 level to move into a short-term bearish zone. The decline gained pace below the $1,700 level.
The price traded as low as $1,688 and is currently consolidating losses. On the upside, the price is facing resistance near the $1,700 level. It is near the 38.2% Fib retracement level of the recent decline from the $1,723 swing high to $1,688 low.
The main resistance is now forming near the $1,705 level. There is also a key bearish trend line forming with resistance near $1,705 on the hourly chart of gold.
The trend line is near the 50% Fib retracement level of the recent decline from the $1,723 swing high to $1,688 low. A close above the $1,705 level could open the doors for a steady increase towards $1,720. A clear upside break above the $1,720 resistance could send the price towards $1,735.
An immediate support on the downside is near the $1,692 level. The next major support is near the $1,688 level, below which there is a risk of a larger decline. In the stated case, the price could decline sharply towards the $1,665 support zone.
Oil Price Technical Analysis
Crude oil price started a fresh decline from the $97.25 resistance zone against the US Dollar. The price traded below the $90.00 support zone to move into a bearish zone.
During the decline, there was a break below a couple of bullish trend lines with support near $94.80 and $91.90 on the hourly chart of XTI/USD. The price even settled below the $90.00 level and the 50 hourly simple moving average.
Finally, there was a move below the $87 level and the price traded as low as $85.75. The price is now correcting losses and there was a minor increase above the $87 level.
It is now approaching the $88.50 resistance or the 23.6% Fib retracement level of the downward move from the $97.25 swing high to $85.75 low. The next key resistance is near the $88.80 level and the 50 hourly simple moving average.
The main resistance sits near the $91.50 level. It is near the 50% Fib retracement level of the downward move from the $97.25 swing high to $85.75 low, above which the price might accelerate higher towards $94.00 or even $95.00.
On the downside, an immediate support is near the $87.20 level. The next major support is near the $85.50 level. If there is a downside break, the price might decline towards $83.20. Any more losses may perhaps open the doors for a move towards the $80.00 support zone.
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.