Gold Price and Crude Oil Price Could Extend Gains

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Gold price is gaining pace above the $1,800 resistance zone. Crude oil price is also rising and the bulls could attempt an upside break above $74.00.

Important Takeaways for Gold and Oil

· Gold price is gaining pace and trading above the $1,800 zone against the US Dollar.

· There was a break above a major bearish trend line with resistance near $1,794 on the hourly chart of gold.

· Crude oil price started a fresh increase above the $70.00 and $72.00 levels.

· There was a break above a key bearish trend line with resistance near $69.20 on the hourly chart of XTI/USD.

Gold Price Technical Analysis

Gold price started a fresh increase from the $1,785 support zone against the US Dollar. The price gained pace above the $1,800 level to move further into a positive zone.

The price settled well above the $1,800 level and the 50 hourly simple moving average. There was also a break above a major bearish trend line with resistance near $1,794 on the hourly chart of gold. Finally, there was a break above the $1,810 level.

Gold price hourly chart

A high is formed near $1,812 on FXOpen and the price is now consolidating gains. On the downside, an initial support is near the $1,807 level. It is near the 23.6% Fib retracement level of the upward move from the $1,785 swing low to $1,812 high.

The first major support is near the $1,800 level. It is near the 50% Fib retracement level of the upward move from the $1,785 swing low to $1,812 high. A downside break below the $1,800 support zone may possibly spark a steady decline. In the stated case, the price could test the $1,785 support.

On the upside, the price is facing resistance near the $1,812 level. The main resistance is near the $1,815 level. A close above the $1,815 level could open the doors for a steady increase towards $1,825. The next major resistance sits near the $1,840 level.

Oil Price Technical Analysis

Crude oil price started a steady increase from the $66.00 support zone against the US Dollar. The price broke the $70.00 resistance zone to move into a positive zone.

The price even cleared the $72.00 level and settled above the 50 hourly simple moving average. There was also a break above a key bearish trend line with resistance near $69.20 on the hourly chart of XTI/USD.

Oil price hourly chart

However, the price failed to gain pace for a move above the $74.00 zone. A high was formed near $73.90 and the price is now consolidating gains.

An immediate support on the downside is near the $73.00 zone. It is near the 23.6% Fib retracement level of the upward move from the $70.70 swing low to $73.90 high. The next major support on is near the $72.20 level.

The 50% Fib retracement level of the upward move from the $70.70 swing low to $73.90 high is also near the $72.20 level, below which there is a risk of a larger decline. The next major support sits near the $70.50 level

On the upside, the price is facing resistance near the $73.90 level. The next key resistance is near the $74.00 level, above which the price might accelerate higher towards $76.50.

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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