Gold Price Faces Hurdles While Crude Oil Price Is Recovering

FXOpen

Gold price is attempting a fresh increase above the $1,785 resistance zone. Crude oil price is recovering and could gain pace if there is a clear move above the $73.20 level.

Important Takeaways for Gold and Oil

· Gold price is showing a few bearish signs below the $1,800 zone against the US Dollar.

· There was a break below a key bullish trend line with support near $1,784 on the hourly chart of gold.

· Crude oil price started a recovery wave above the $70.00 and $72.00 levels.

· There was a break below a major bullish trend line with support near $72.30 on the hourly chart of XTI/USD.

Gold Price Technical Analysis

Gold price started a fresh decline from well above the $1,800 zone against the US Dollar. The price declined heavily, and it even broke the $1,780 support zone.

The price even settled below the $1,800 level and the 50 hourly simple moving average. Finally, there was a break below the $1,770 level. A low was formed near $1,761 on FXOpen before there was a recovery wave.

Gold price hourly chart

The price climbed above $1,780, but it stayed below $1,800. A high was formed near $1,792 and the price corrected lower. There was a break below the $1,785 level and the $1,780 support.

The price even traded below the 50% Fib retracement level of the upward move from the $1,761 swing low to $1,792 high. There was also a break below a key bullish trend line with support near $1,784 on the hourly chart of gold.

However, the bulls remained active near $1,774. The price is also stable above the 61.8% Fib retracement level of the upward move from the $1,761 swing low to $1,792 high.

An immediate resistance on the upside is near the $1,780 level and the 50 hourly simple moving average. The main resistance is near the $1,785 level. A close above the $1,785 level could open the doors for a steady increase towards $1,800.

The next major resistance sits near the $1,820 level. On the downside, an initial support is near the $1,774 level.

The first major support is near the $1,760 level. A downside break below the $1,760 support zone may possibly spark a steady decline. In the stated case, the price could test the $1,740 support.

Oil Price Technical Analysis

Crude oil price started a steady increase from the $62.50 support zone against the US Dollar. The price broke the $65.00 resistance zone to move into a positive zone.

The price even cleared the $70.00 level and settled above the 50 hourly simple moving average. However, the price failed to gain pace for a move above the $73.20 zone. A high was formed near $73.13 before the price corrected lower.

Crude Oil price hourly chart

It corrected a few points below the $72.00 level. The price even traded below the 23.6% Fib retracement level of the upward move from the $62.29 swing low to $73.13 high.

There was also a break below a major bullish trend line with support near $72.30 on the hourly chart of XTI/USD. On the downside, an initial support is near the $70.00 level.

The first key support is near the $68.00 level or the 50% Fib retracement level of the upward move from the $62.29 swing low to $73.13 high, below which there is a risk of a larger decline. The next major support sits near the $62.50 level

On the upside, the price is facing resistance near the $72.50 level. The next key resistance is near the $73.20 level, above which the price might accelerate higher towards $75.50.

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.

Trade over 50 forex markets 24 hours a day with FXOpen. Take advantage of low commissions, deep liquidity, and spreads from 0.0 pips. Open your FXOpen account now or learn more about trading forex with FXOpen.

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.

Stay ahead of the market!

Subscribe now to our mailing list and receive the latest market news and insights delivered directly to your inbox.

Latest articles

Analysis of XAU/USD: Gold Price Sets Historical Record
Commodities

Analysis of XAU/USD: Gold Price Sets Historical Record

As the XAU/USD chart shows, on 16th July, the gold price rose above $2460 for the first time in history. The bullish sentiment is driven by:

→ Anticipation of Fed rate cuts, as the appeal of non-yielding bullion generally increases

Shares

US Banks Set a Bullish Tone at the Start of Earnings Season

Company earnings reports for the second quarter will be a crucial driver of stock market movements in the coming weeks. Traditionally, the largest banks kick off the earnings season, and their performance indicators today are setting a bullish tone.

For

The Dollar Corrected After a Sharp Decline. Will the Uptrend Resume?
Forex Analysis

The Dollar Corrected After a Sharp Decline. Will the Uptrend Resume?

A sustained decline in the core consumer price index in the US contributed to a sharp pullback in the American currency. The GBP/USD currency pair is trading near the psychological level of 1.3000, EUR/USD buyers are attempting

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 60% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money.