Gold Price Could Extend Gains While Crude Oil Price Corrects Lower

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Gold price started a decent recovery wave above the $1,820 resistance. Crude oil price is declining and it might even break the $70.00 support zone.

Important Takeaways for Gold and Oil

  • Gold price started a fresh recovery wave after forming a base above $1,790 against the US Dollar.
  • There is a key bullish trend line forming with support near $1,825 on the hourly chart of gold.
  • Crude oil price failed to settle above $75.000 and it started a fresh decline.
  • There was a break below a major bullish trend line with support near $74.55 on the hourly chart of XTI/USD.

Gold Price Technical Analysis

This week, gold price formed a decent support base above the $1,790 zone against the US Dollar. The price started a fresh upward move and it surpassed the $1,800 resistance zone.

The price even settled above the $1,810 level and the 50 hourly simple moving average. The price even broke the $1,820 resistance and it traded as high as $1,833 on FXOpen. Recently, there was a minor downside correction below the $1,830 level.

Gold Price Could Extend Gains While Crude Oil Price Corrects Lower

The price even traded below the 23.6% Fib retracement level of the upward move from the $1,791 low to $1,833 high. However, the bulls are protecting the $1,820 support.

There is also a key bullish trend line forming with support near $1,825 on the hourly chart of gold. The 50 hourly SMA is also near the trend line. If there is a downside break, the price could test the $1,810 support.

An intermediate support could be the 50% Fib retracement level of the upward move from the $1,791 low to $1,833 high at $1,812. An immediate resistance on the upside is near the $1,832 level.

The first major resistance is near the $1,835 level. If the price breaks the $1,835 level, it could accelerate higher. In the stated case, the price could rise towards the $1,850 zone.

Oil Price Technical Analysis

Crude oil price extended its upward move above the $73.50 level against the US Dollar. The price even climbed above the $74.50 level, but it failed to continue higher above the $75.00 zone.

The price formed a swing high near the $74.89 before it started a downside correction. There was a break below the $74.00 and $73.50 support levels. The price broke the 50% Fib retracement level of the upward move from the $70.24 low to $74.89 high.

Oil Price Technical Analysis

Besides, there was a break below a major bullish trend line with support near $74.55 on the hourly chart of XTI/USD. The price settled below the $72.00 level and the 50 hourly simple moving average.

It is now trading near the 76.4% Fib retracement level of the upward move from the $70.24 low to $74.89 high. On the downside, an initial support is forming near the $70.75 level. The main support is now forming near the $70.00 level.

A downside break below the $70.00 level could open the doors for a move towards the $68.00 support level. On the upside, an initial resistance is near the $72.00 level.

The next key resistance is near the $72.55 level and the 50 hourly SMA. Any more gains could lift the price towards the $74.00 resistance zone in the near term.

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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