Gold price started a major decline below the $1,725 support zone. Crude oil price is attempting a fresh increase from the $88.80 support zone.
Important Takeaways for Gold and Oil
· Gold price struggled above $1,740 and declined against the US Dollar.
· Recently, there was a break above a key bearish trend line with resistance near $1,705 on the hourly chart of gold.
· Crude oil price started a downside correction from the $100 and $101 resistance levels.
· There was a break below a major bullish trend line with support near $98.95 on the hourly chart of XTI/USD.
Gold Price Technical Analysis
Gold price struggled to gain pace above the $1,750 resistance zone against the US Dollar. The price started a fresh decline and traded below the $1,725 pivot level.
There was a clear move below the $1,712 support zone and the 50 hourly simple moving average. The price even traded below the $1,700 level and formed a low near $1,680 on FXOpen. It is now correcting losses above the $1,695 level.
There was a break above a key bearish trend line with resistance near $1,705 on the hourly chart of gold. The price even climbed above the $1,712 level but struggled to clear $1,720.
A high is formed near $1,720 and the price is now consolidating gains. On the downside, an initial support is near the $1,710 level. It is near the 23.6% Fib retracement level of the upward move from the $1,680 swing low to $1,720 high.
The next major support is near the $1,700 level or the 50% Fib retracement level of the upward move from the $1,680 swing low to $1,720 high, below which there is a risk of a larger decline. In the stated case, the price could decline sharply towards the $1,680 support zone.
On the upside, the price is facing resistance near the $1,720 level. A clear upside break above the $1,720 resistance could send the price towards $1,735. The main resistance is now forming near the $1,750 level. A close above the $1,750 level could open the doors for a steady increase towards $1,780.
Oil Price Technical Analysis
Crude oil price started a fresh increase from the $88.80 support zone against the US Dollar. The price climbed above the $92.50 and $95.00 resistance levels.
The price even moved above the $98 resistance and the 50 hourly simple moving average. A high was formed near $100.64 and the price is now correcting gains. There was a move below the $98.80 support zone.
The price declined below the 38.2% Fib retracement level of the upward move from the $88.22 swing low to $100.64 high. Besides, there was a break below a major bullish trend line with support near $98.95 on the hourly chart of XTI/USD.
It tested the 50% Fib retracement level of the upward move from the $88.22 swing low to $100.64 high. On the upside, the price is facing resistance near the $97.70 level.
The next key resistance is near the $98.80 level, above which the price might accelerate higher towards $100 or even $102. On the downside, an immediate support is near the $96.00 level. The next major support is near the $94.50 level.
If there is a downside break, the price might decline towards $92.20. Any more losses may perhaps open the doors for a move towards the $90.00 support zone.
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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