Gold price is struggling to clear the $1,855 resistance zone. Crude oil price is rising and might continue to gain pace above the $120.00 resistance.
Important Takeaways for Gold and Oil
· Gold price struggled above $1,860 and corrected lower against the US Dollar.
· There was a break below a key bullish trend line with support near $1,850 on the hourly chart of gold.
· Crude oil price gained pace after it broke the $118 and $120 resistance levels.
· There is a major bullish trend line forming with support near $118.50 on the hourly chart of XTI/USD.
Gold Price Technical Analysis
Gold price formed a base above the $1,830 and $1,835 levels against the US Dollar. The price started a fresh increase after it broke the $1,840 resistance zone.
There was a clear move above the $1,850 level and the 50 hourly simple moving average. The price even cleared the $1,855 level and traded as high as $1,859 on FXOpen. Recently, there was a downside correction below $1,855.
The price declined below the 50% Fib retracement level of the upward move from the $1,837 swing low to $1,859 high. There was also a break below a key bullish trend line with support near $1,850 on the hourly chart of gold.
The price also tested the 76.4% Fib retracement level of the upward move from the $1,837 swing low to $1,859 high. On the downside, an initial support is near the $1,840 level.
The next major support is near the $1,835 level, below which there is a risk of a larger decline. In the stated case, the price could decline sharply towards the $1,810 support zone. On the upside, the price is facing resistance near the $1,850 level.
The main resistance is now forming near the $1,860 level. A close above the $1,860 level could open the doors for a steady increase towards $1,875. The next major resistance sits near the $1,888 level.
Oil Price Technical Analysis
Crude oil price formed a base above the $112 level against the US Dollar. The price started a major increase above the $116 and $118 resistance levels.
The price climbed above the $120 level and the 50 hourly simple moving average. The price traded as high as $121.31 and is currently correcting gains. It traded below the 38.2% Fib retracement level of the recent increase from the $115.67 swing low to $121.31 high.
On the downside, an immediate support is near the $118.50 level. There is also a major bullish trend line forming with support near $118.50 on the hourly chart of XTI/USD.
The trend line is close to the 50% Fib retracement level of the recent increase from the $115.67 swing low to $121.31 high. The next major support is near the $117.00 level. If there is a downside break, the price might decline towards $115.
Any more losses may perhaps open the doors for a move towards the $112 support zone in the coming sessions. On the upside, an immediate resistance is near the $119.80 level.
The next key resistance is near the $120.00 level, above which the price might accelerate higher towards $121.50 or even $122.00.
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.
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