Gold price started an upside correction from the $1,615 zone. Crude oil price is rising and might clear the $90 resistance zone.
Important Takeaways for Gold and Oil
· Gold price found support near the $1,616 level and corrected higher against the US Dollar.
· There is a key bearish trend line forming with resistance near $1,650 on the hourly chart of gold.
· Crude oil price is showing positive signs above the $87.20 support zone.
· There was a break below a connecting bullish trend line with support near $88.30 on the hourly chart of XTI/USD.
Gold Price Technical Analysis
Gold price failed to gain strength for a move above the $1,665 resistance against the US Dollar. The price started a fresh decline and traded below the $1,650 support level.
There was a clear move below the $1,635 support zone and the 50 hourly simple moving average. The price traded as low as $1,616 on FXOpen and recently there was a recovery wave. The price was able to clear the $1,630 resistance zone.
The price even climbed above the 38.2% Fib retracement level of the downward move from the $1,669 swing high to $1,616 low. It is now facing resistance near the $1,640 level and the 50 hourly simple moving average.
The first major resistance is near the $1,644 level. It is near the 50% Fib retracement level of the downward move from the $1,669 swing high to $1,616 low.
There is also a key bearish trend line forming with resistance near $1,650 on the hourly chart of gold. The main resistance is now forming near the $1,655 level, above which it could even test $1,670. A clear upside break above the $1,670 resistance could send the price towards $1,700.
An immediate support on the downside is near the $1,630 level. The next major support is near the $1,620 level, below which there is a risk of a larger decline. In the stated case, the price could decline sharply towards the $1,600 support zone.
Oil Price Technical Analysis
Crude oil price attempted an upside break above the $89.65 resistance against the US Dollar. The price failed to gain pace and started a fresh decline below $89.
There was a started a fresh decline from the $86.92 resistance zone. The price even broke the 38.2% Fib retracement level of the upward move from the $84.76 swing low to $89.64 high. It settled below the $88.50 level and the 50 hourly simple moving average.
The bulls were active near the $87.20 support. The price tested the 50% Fib retracement level of the upward move from the $84.76 swing low to $89.64 high.
It is now rising and trading near the $88.20 resistance plus the 50 hourly simple moving average. The next major resistance is near the $88.50 level. The main resistance sits near the $89.50 level, above which the price might accelerate higher towards $92.50 or even $94.00.
On the downside, an immediate support is near the $87.65 level. The next major support is near the $87.20 level. If there is a downside break, the price might decline towards $85.00. Any more losses may perhaps open the doors for a move towards the $82.00 support zone.
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.
