Gold Price Showing Bearish Signs While Oil Price Outperforms

FXOpen

Gold price failed to surpass the $1,875 resistance and started a fresh decline. Conversely, crude oil price traded to new multi-month high close to $48.00 level.

Important Takeaways for Gold and Oil

  • Gold price started a fresh decline below the $1,870 and $1,850 levels against the US Dollar.
  • There is a major contracting triangle forming with resistance near $1,840 on the hourly chart of gold.
  • Crude oil price surged above the $46.75 resistance and traded as high as $47.82.
  • There was a break above a key declining channel with resistance near $46.20 on the hourly chart of XTI/USD.

Gold Price Technical Analysis

Gold price started a fresh increase above the $1,800 support zone against the US Dollar. The price broke the $1,840 and $1,850 resistance levels to gain bullish momentum.

However, the price struggled to clear the $1,875 resistance. A high was formed near $1,875 on FXOpen and the price started a fresh decline. There was a clear break below the $1,855 support zone and the 50 hourly simple moving average.

Gold Price Technical Analysis

The price even broke the $1,840 level and traded close to $1,825. The price is currently consolidating above $1,825. The recent swing high was near $1,849 before the price declined to $1,829.

It is currently trading above the $1,832 level. There was a break above the 23.6% Fib retracement level of the recent decline from the $1,849 swing high to $1,829 low. On the upside, the price is facing hurdles near the $1,840 level.

Moreover, there is a major contracting triangle forming with resistance near $1,840 on the hourly chart of gold. The triangle resistance is close to the 50% Fib retracement level of the recent decline from the $1,849 swing high to $1,829 low.

A successful close above the triangle resistance, $1,840, and the 50 hourly simple moving average could open the doors for a decent increase in the coming sessions. The next major resistance is near the $1,850 level.

Conversely, the price could continue to move down below the $1,830 and $1,828 levels. The next major support is near $1,810, below which there is a risk of a sharp decline towards $1,780. Any further losses could lead the price towards the $1,750 support zone.

Oil Price Technical Analysis

Crude oil price remained well bid above the $44.00 and $45.00 levels against the US Dollar. The price broke many hurdles near $45.50 to move further into a positive zone.

The bulls remained in action and there was a clear break above the $46.75 resistance. During the rise, there was a break above a key declining channel with resistance near $46.20 on the hourly chart of XTI/USD.

Oil Price Technical Analysis

The price even broke the $47.20 resistance and settled well above the 50 hourly simple moving average. It traded close to the $47.85 level and a high is formed near $47.82.

Recently, there was a downside correction below the $47.50 level. There was a break below the 23.6% Fib retracement level of the upward move from the $45.06 swing low to $47.82 high.

On the downside, the previous resistance near $46.75 is acting as a strong support. The next major support is near the $46.50 level or the 50% Fib retracement level of the upward move from the $45.06 swing low to $47.82 high.

On the upside, the price is facing hurdles near the $47.25 level. A close above $47.25 might set the pace for a fresh leg higher towards the $48.00 level.

Trade over 50 forex markets 24 hours a day with FXOpen. Take advantage of low commissions, deep liquidity, and spreads from 0.0 pips. Open your FXOpen account now or learn more about trading forex with FXOpen.

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.

Latest from Forex Analysis

Market Analysis: AUD/USD and NZD/USD Grind Higher Steadily Commodity Currencies Strengthen after the FOMC Minutes Publication EUR/USD Analysis: Euro Showing Signs of Strength Market Analysis: EUR/USD Starts Increase While USD/JPY Dips Dollar Holds Steady after Producer Price Data Release

Latest articles

Cryptocurrencies

Bitcoin Price Risks Not Staying above $50k

On February 14, a strong bullish impulse was recorded in the BTC/USD market, which pushed the price of bitcoin to the area above USD 50k. The main driver of growth was the effect of the launch of a bitcoin

Indices

Nvidia's Successes Helps S&P 500 Price Reach Its All-time High

Yesterday, the price of the S&P 500 stock index rose to record closing highs on Thursday. Moreover, such a growth rate (+2.11% per day) has not been observed for 13 months. Reasons for Extremely Bullish Sentiment: → Nvidia's

Forex Analysis

Market Analysis: AUD/USD and NZD/USD Grind Higher Steadily

AUD/USD is moving higher and might rally if it clears 0.6600. NZD/USD is also rising and could extend its increase above the 0.6220 resistance zone. Important Takeaways for AUD/USD and NZD/USD Analysis Today· The

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 65.68% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money.