Gold price started a fresh increase from the $1,720 support. Crude oil price rallied and it even broke the $75.00 resistance before correcting lower.
Important Takeaways for Gold and Oil
· Gold price started a decent increase above the $1,735 resistance against the US Dollar.
· There was a break above a major bearish trend line with resistance near $1,737 on the hourly chart of gold.
· Crude oil price started a fresh rally from the $70.00 support zone.
· There was a break below a key bullish trend line with support near $74.85 on the hourly chart of XTI/USD.
Gold Price Technical Analysis
Gold price extended its decline below $1,740 against the US Dollar. However, it found support near the $1,720 zone. A low was formed near $1,721 on FXOpen and the price started a fresh increase.
It was able to clear the $1,735 resistance and the 50 hourly simple moving average. There was a break above a major bearish trend line with resistance near $1,737 on the hourly chart of gold.
The price even broke the 50% Fib retracement level of the key decline from the $1,787 swing high to $1,721 swing low. It is now consolidating gains near the $1,750 level. The first major resistance is near the $1,762 level.
The 61.8% Fib retracement level of the key decline from the $1,787 swing high to $1,721 swing low is also near $1,762. The main resistance is near the $1,780 level. A close above the $1,780 levels could open the doors for a steady increase towards $1,800.
The next major resistance sits near the $1,820 level. On the downside, an initial support is near the $1,745 level. The first major support is near the $1,735 level. A downside break below the $1,735 support zone may possibly spark a sharp decline. In the stated case, the price could test the $1,720 support.
Oil Price Technical Analysis
Crude oil price started a major increase from the $70.00 support zone against the US Dollar. The price broke the $72.00 resistance zone to move into a positive zone.
The price even cleared the $75.00 level and settled above the 50 hourly simple moving average. A high was formed near $76.42 before the price corrected lower. It corrected a few points below the $75.00 level.
There was a break below the 23.6% Fib retracement level of the upward move from the $69.32 swing low to $76.42 high. Besides, there was a break below a key bullish trend line with support near $74.85 on the hourly chart of XTI/USD.
However, downsides were limited below $73.00. The price found support near the 50% Fib retracement level of the upward move from the $69.32 swing low to $76.42 high.
On the upside, the price is facing resistance near the $75.20 level. The next key resistance is near the $75.50 level, above which the price might rise towards the $76.50 level. On the downside, an initial support is near the $74.50 level.
If there is a downside break below the $74.50 level and the 50 hourly SMA, the price could extend its decline towards the $73.00 level in the coming sessions. The next major support sits near the $72.50 level.
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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