Gold Price Nosedives While Crude Oil Price Extends Rally
Gold price started a fresh decline from the $1,850 resistance zone. Crude oil price is rising and might continue to gain momentum above $87.00.
Important Takeaways for Gold and Oil
· Gold price started a major decline from the $1,850 against the US Dollar.
· There was a break below a key contracting triangle with support near $1,840 on the hourly chart of gold.
· Crude oil price started a steady increase after it cleared the $85.00 resistance.
· There is a major bullish trend line forming with support near $86.20 on the hourly chart of XTI/USD.
Gold Price Technical Analysis
Gold price attempted a key upside break above $1,850 against the US Dollar. However, the price failed to gain strength above $1,850 and started a major decline.
There was a clear move below the $1,820 level and the 50 hourly simple moving average. Besides, there was a break below a key contracting triangle with support near $1,840 on the hourly chart of gold.
The price even declined below the $1,800 level and settled below the 50 hourly simple moving average. A low is formed near $1,791 and is currently consolidating losses. On the upside, the price is facing resistance near the $1,800 level.
The first major resistance is near the $1,805 level. It is near the 23.6% Fib retracement level of the downward move from the $1,853 swing high to $1,791 low.
The main resistance is now forming near the $1,820 level. The 50% Fib retracement level of the downward move from the $1,853 swing high to $1,791 low is also near the $1,820 level. A close above the $1,820 level could open the doors for a steady increase towards $1,840.
The next major resistance sits near the $1,850 level. On the downside, an initial support is near the $1,790 level. The first major support is near the $1,780 level.
A downside break below the $1,780 support zone may possibly spark a steady decline. In the stated case, the price could test the $1,750 support.
Oil Price Technical Analysis
Crude oil price started a steady increase from the $81.50 support zone against the US Dollar. The price broke the $82.50 resistance zone to move into a positive zone.
The price even cleared the $85.00 level and settled above the 50 hourly simple moving average. A high was formed near $87.98 and the price is now consolidating gains. An immediate support on the downside is near the $86.20 zone.
There is also a major bullish trend line forming with support near $86.20 on the hourly chart of XTI/USD. The trend line is near the 38.2% Fib retracement level of the upward move from the $81.70 swing low to $87.98 high.
The next major support on is near the $85.00 level. The 50% Fib retracement level of the upward move from the $81.70 swing low to $87.98 high is also near the $85.00 level, below which there is a risk of a larger decline. The next major support sits near the $82.50 level
On the upside, the price is facing resistance near the $87.00 level. The next key resistance is near the $88.00 level, above which the price might accelerate higher towards $92.50.
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.