Gold Price Extends Rally While Crude Oil Price Might Correct Lower

FXOpen

Gold price is rising and gaining pace above the $1,950 resistance. Crude oil price is declining and remains at a risk of more losses below $70.

Important Takeaways for Gold and Oil

· Gold price started a fresh increase above the $1,950 resistance against the US Dollar.

· It broke a key bearish trend line with resistance near $1,945 on the hourly chart of gold.

· Crude oil price started a fresh decline below the $70.50 support zone.

· There was a break below a rising channel with support near $70.40 on the hourly chart of XTI/USD.

Gold Price Technical Analysis

Gold price formed a base above the $1,940 support zone against the US Dollar. The price started a decent increase and was able to clear the $1,950 resistance zone.

The bulls were able to push the price above the 50% Fib retracement level of the downward move from the $2,009 swing high to $1,934 low (formed on FXOpen). There was also a break above a key bearish trend line with resistance near $1,945 on the hourly chart of gold.

Gold Price Hourly Chart

The price is now trading above the $1,980 level and the 50 hourly simple moving average. It is also above the 76.4% Fib retracement level of the downward move from the $2,009 swing high to $1,934 low.

The bulls are now facing resistance near the $2,000 zone. The next key hurdle is near the $2,010 level. A clear upside break above the $2,010 resistance could send the price towards $2,040.

If there is no upside break, the price might correct lower. An immediate support on the downside is near the $1,980 level. The next major support is near the $1,970 level, below which there is a risk of a larger decline. In the stated case, the price could decline sharply towards the $1,950 support zone.

Oil Price Technical Analysis

Crude oil price also started a fresh decline from the $71.65 resistance zone against the US Dollar. The price declined below the $71.20 level to move into a short-term bearish zone.

The price even settled below the $70.50 level and the 50 hourly simple moving average. There was also a break below a rising channel with support near $70.40 on the hourly chart of XTI/USD. The price is now trading below the 23.6% Fib retracement level of the upward move from the $64.35 swing low to $71.66 high.

Oil Price Hourly Chart

On the downside, an immediate support is near the $66.80 level. The next major support is near the $68.00 level. It is near the 50% Fib retracement level of the upward move from the $64.35 swing low to $71.66 high.

If there is a downside break, the price might decline towards $67.00. Any more losses may perhaps open the doors for a move towards the $65.00 support zone.

On the upside, an immediate resistance is seen near the $70.00 level and the 50 hourly simple moving average. The first major resistance is near the $70.50 level.

The next major resistance is near the $71.50 zone, above which the price might accelerate higher towards $72.20 or even $73.00. Any more gains might send the price towards the $74.20 level in th coming sessions.

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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