Gold price started a downside correction below the $1,720 support and even declined below $1,700. Conversely, crude oil price is recovering nicely and trading above $20.00 (spot price).

Important Takeaways for Gold and Oil

• Gold price topped near the $1,740 level and corrected below $1,720 against the US Dollar.
• There is a key bearish trend line forming with resistance near $1,712 on the hourly chart of gold.
• Crude oil price is rising steadily and showing positive signs above $18.00.
• There is a major bullish trend line forming with support near $19.70 on the hourly chart of XTI/USD.

Gold Price Technical Analysis

Gold price faced a strong resistance near the $1,740 level and started a fresh decline against the US Dollar. There was a break below the $1,720 support and the price moved into a short term bearish zone.

Besides, there was a break below the $1,700 level and the price settled well below the 50 hourly simple moving average. A low is formed near $1,680 on FXOpen and the price is currently consolidating losses.

An initial resistance is near the $1,690 level. It is close to the 23.6% Fib retracement level of the recent decline from the $1,721 high to $1,680 low.

The first major resistance for the bulls on the upside is near the $1,700 level. It is close to the 50% Fib retracement level of the recent decline from the $1,721 high to $1,680 low.

Moreover, there is a key bearish trend line forming with resistance near $1,712 on the hourly chart of gold. Therefore, the price is likely to face many hurdles if it corrects higher towards the $1,700 and $1,710 levels in the near term.

On the downside, an initial support is near the $1,680 level, below which the price could extend its decline towards the $1,670 support. The next major support is near the $1,662 level.

Oil Price Technical Analysis

Crude oil price formed a decent support base above $10.00 after a massive decline against the US Dollar. The price started a decent recovery above the $12.00 and $15.00 resistance levels.

Besides, there was a close above the $19.75 resistance area and the 50 hourly simple moving average. It even climbed above $20.50 and traded as high as $21.90.

It is currently consolidating gains and trading near the 23.6% Fib retracement level of the recent rise from the $18.08 low to $21.90 high. The first key support on the downside is seen near the $20.00 level.

The 50% Fib retracement level of the recent rise from the $18.08 low to $21.90 high is also near $20.00. Moreover, there is a major bullish trend line forming with support near $19.70 on the hourly chart of XTI/USD.

The main support is near the $19.75 and $19.60 levels (the recent breakout levels). If the price fails to stay above the $19.60 support, there is a risk of a sharp decline towards the $18.00 support and the 50 hourly simple moving average.

Any further losses may perhaps call for a move towards the $16.50 level. Conversely, oil price might continue to rise above $21.50 and $22.00.

The next major resistance on the upside is near the $23.20 level, above which the bulls are likely to aim a test of the $25.00 resistance zone.

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.