Gold price started a fresh decline below the $1,785 support zone. Crude oil price struggling near $78 and might correct gains in the near term.
Important Takeaways for Gold and Oil
· Gold price faced resistance near $1,825 and corrected lower against the US Dollar.
· There was a break below a key bullish trend line with support near $1,798 on the hourly chart of gold.
· Crude oil price gained bullish momentum above the $72.00 resistance zone.
· There is a major bullish trend line forming with support near $76.10 on the hourly chart of XTI/USD.
Gold Price Technical Analysis
Gold price traded high above the $1,810 resistance zone against the US Dollar. The price even cleared the $1,820 level, but the bears were active near the $1,825 zone.
A high was formed near $1,824 and the price started a fresh decline. There was a clear move below the $1,810 and $1,800 support levels. Besides, there was a break below a key bullish trend line with support near $1,798 on the hourly chart of gold.
The price settled below the $1,785 level and the 50 hourly simple moving average. It traded as low as $1,773 on FXOpen and is currently consolidating losses. On the upside, the first major resistance is near the $1,785 level.
The 23.6% Fib retracement level of the downward move from the $1,824 swing high to $1,773 swing low is also near the $1,785 level. The main resistance is now forming near the $1,800 level and the 50 hourly simple moving average.
The 50% Fib retracement level of the downward move from the $1,824 swing high to $1,773 swing low is also near the $1,800 level, above which it could even test $1,820. A clear upside break above the $1,820 resistance could send the price towards $1,840.
An immediate support on the downside is near the $1,772 level. The next major support is near the $1,760 level, below which there is a risk of a larger decline. In the stated case, the price could decline sharply towards the $1,750 support zone.
Oil Price Technical Analysis
Crude oil price also started a fresh increase from the $70.40 support zone against the US Dollar. The price was able to clear the $72.00 and $75.00 resistance levels.
The price even gained pace above the $75.00 level and the 50 hourly simple moving average. Finally, the bears appeared near the $77.80 level. A high was formed near $77.80 and the price is now correcting gains.
the downside, an immediate support is near the $76.00 level. There is also a major bullish trend line forming with support near $76.10 on the hourly chart of XTI/USD. The trend line is near the 23.6% Fib retracement level of the upward move from the $70.42 swing low to $77.80 high.
The next major support is near the $75.00 level. If there is a downside break, the price might decline towards $74.10 or the 50% Fib retracement level of the upward move from the $70.42 swing low to $77.80 high.
Any more losses may perhaps open the doors for a move towards the $72.00 support zone. On the upside, the price might face resistance near $76.80.
The first major resistance is near the $77.10 level. The main resistance sits near the $77.80 level, above which the price might accelerate higher towards $80.00 or even $82.00.
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.
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