Gold price is showing a lot of positive signs above the $1,660 resistance area. Crude oil price is currently sliding and it might continue to move down below $45.50
Important Takeaways for Gold and Oil
- Gold price rallied recently above the $1,650 and $1,660 resistance levels against the US Dollar.
- There is a major bullish trend line forming with support near $1,650 on the hourly chart of gold.
- Crude oil price failed to climb above the $48.80 resistance and it is currently declining.
- There is a key declining channel forming with resistance near $46.50 on the hourly chart of XTI/USD.
Gold Price Technical Analysis
This past week, gold price corrected lower sharply below the $1,600 support area against the US Dollar. However, the bulls were able to protect the $1,570 support area.
As a result, there was a fresh rally above the $1,600 and $1,620 resistance levels. Moreover, the price gained pace above the $1,650 resistance and the 50 hourly simple moving average. Finally, it broke the $1,660 resistance and traded to a weekly high at $1,676 on FXOpen.
The price is currently consolidating gains and trading below $1,670. An initial support is near the $1,666 level. It is the 23.6% Fib retracement level of the recent rally from the $1,633 low to $1,676 high.
The first key support on the downside is near the $1,660 level. Moreover, there is a major bullish trend line forming with support near $1,650 on the hourly chart of gold.
An intermediate support is near the $1,655 since it is the 50% Fib retracement level of the recent rally from the $1,633 low to $1,676 high. Therefore, dips remain well supported on the downside near the $1,660 and $1,650 levels.
On the upside, an initial resistance is near the $1,675 and $1,676 levels. If gold price continues to rise, there are chances of it gaining pace above the $1,680 level. The next major hurdle is near the $1,700 level.
Oil Price Technical Analysis
Recently, crude oil price made an attempt to climb above the $48.80 and $49.00 resistance levels against the US Dollar. However, the bulls failed to gain traction and a swing high is formed near $48.69.
The price is currently declining below the $48.00 level and the 50 hourly simple moving average. Besides, there was a break below the 50% Fib retracement level of the upward move from the $43.56 low to $48.69 high.
The price even declined below a major bullish trend line with support near $47.40 on the hourly chart of XTI/USD. An immediate support is seen near the $45.50 level.
The 61.8% Fib retracement level of the upward move from the $43.56 low to $48.69 high is also near the $45.50 level. If there is a downside break below the $45.50 support, there is a risk of more losses in the near term.
The next major support is near the $44.20 and $44.00 levels. Conversely, crude oil price might start a decent recovery wave above the $46.00 level. There is also a key declining channel forming with resistance near $46.50 on the same chart.
Therefore, a clear break above $46.00 and $46.50 is needed for a move towards the $48.50 level in the near term.
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