Gold Price Recovers While Crude Oil Price Declines Further
Gold price is attempting a recovery wave above the $1,820 resistance. Crude oil price is declining and remains at a risk of more losses below $75.
Important Takeaways for Gold and Oil
· Gold price started a recovery wave above the $1,820 resistance against the US Dollar.
· A key bearish trend line is forming with resistance near $1,832 on the hourly chart of gold.
· Crude oil price started a fresh decline below the $80 support zone.
· There is a major bearish trend line forming with resistance near $76.65 on the hourly chart of XTI/USD.
Gold Price Technical Analysis
Gold price formed a base above the $1,810 support zone against the US Dollar. The price started a decent increase and was able to clear the $1,820 resistance zone.
The bulls were able to push the price above the 38.2% Fib retracement level of the downward move from the $1,858 swing high to $1,809 low (formed on FXOpen). The price is now trading above the $1,820 level and the 50 hourly simple moving average.
It is now facing resistance near the $1,835 zone. There is also a key bearish trend line is forming with resistance near $1,832 on the hourly chart of gold.
The trend line is near the 50% Fib retracement level of the downward move from the $1,858 swing high to $1,809 low. The next key hurdle is near the $1,840 level.
A clear upside break above the $1,840 resistance could send the price towards $1,850. If there is no upside break, the price might correct lower.
An immediate support on the downside is near the $1,820 level. The next major support is near the $1,810 level, below which there is a risk of a larger decline. In the stated case, the price could decline sharply towards the $1,800 support zone.
Oil Price Technical Analysis
Crude oil price also started a fresh decline from the $81 resistance zone against the US Dollar. The price declined below the $78 level to move into a bearish zone.
The price even settled below the $76.50 level and the 50 hourly simple moving average. A low was formed near $75.18 and the price is now consolidating losses. On the upside, an immediate resistance is seen near the $75.85 level.
The 23.6% Fib retracement level of the downward move from the $78.12 swing high to $75.18 low is also near the $75.85 level. The first major resistance is near the $76.65 level and the 50 hourly simple moving average.
There is also a major bearish trend line forming with resistance near $76.65 on the hourly chart of XTI/USD. The trend line is near the 50% Fib retracement level of the downward move from the $78.12 swing high to $75.18 low.
The next major resistance is near the $78 zone, above which the price might accelerate higher towards $80.00 or even $82.00.
On the downside, an immediate support is near the $75.20 level. The next major support is near the $74.50 level. If there is a downside break, the price might decline towards $73.65. Any more losses may perhaps open the doors for a move towards the $72.00 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.