Gold price is gaining pace above the $1,870 level. Crude oil price is also rising and might clear the $80 resistance zone in the near term.
Important Takeaways for Gold and Oil
· Gold price started a strong increase and tested $1,900 against the US Dollar.
· There is a key bullish trend line forming with support near $1,885 on the hourly chart of gold.
· Crude oil price started a fresh increase from the $74.00 support zone.
· There is a major bullish trend line forming with support near $75.40 on the hourly chart of XTI/USD.
Gold Price Technical Analysis
Gold price formed a base above the $1,820 level against the US Dollar. The price started a strong increase above the $1,840 and $1,850 resistance levels to move into a positive zone.
The bulls even pumped the price above the $1,880 and the 50 hourly simple moving average. The price even tested the $1,900 level. A high is formed near $1,901 on FXOpen and the price is now consolidating gains.
An immediate support on the downside is near the $1,894 level. It is close the 23.6% Fib retracement level of the upward move from the $1,871 swing low to $1,901 high.
The next major support is near the $1,885 level. There is also a key bullish trend line forming with support near $1,885 on the hourly chart of gold. The trend line is near the 50% Fib retracement level of the upward move from the $1,871 swing low to $1,901 high.
The next major support is near $1,882, below which there is a risk of a larger decline. In the stated case, the price could decline sharply towards the $1,865 support zone.
On the upside, the first major resistance is near the $1,900 level. The next key hurdle is near the $1,912 level, above which it could even test $1,925. A clear upside break above the $1,925 resistance could send the price towards $1,950.
Oil Price Technical Analysis
Crude oil price also started a fresh increase from the $74.00 support zone against the US Dollar. The price was able to clear the $75.00 and $76.00 resistance levels.
The price even gained pace above the $78.00 level and the 50 hourly simple moving average. Finally, the bears appeared near the $79.30 level. A high was formed near $79.32 and the price is now correcting gains.
The price declined and tested the 23.6% Fib retracement level of the upward move from the $74.23 swing low to $79.32 high.
On the downside, an immediate support is near the $78.10 level. The next major support is near the $76.80 level. It is near the 50% Fib retracement level of the upward move from the $74.23 swing low to $79.32 high.
If there is a downside break, the price might decline towards $75.50. There is also a major bullish trend line forming with support near $75.40 on the hourly chart of XTI/USD.
Any more losses may perhaps open the doors for a move towards the $74.00 support zone. On the upside, the price might face resistance near $79.00. The first major resistance is near the $79.30 level. The main resistance sits near the $80 level, above which the price might accelerate higher towards $82.00 or even $85.00.
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.
Trade global forex with the best ECN broker of 2021*.
Choose from 50+ forex markets 24/5.
Open your FXOpen account now or learn more about making your money go further with FXOpen.
* FXOpen International, best ECN broker of 2021, according to the IAFT
Be the first to comment