Gold price remained in a positive zone and traded above the $1,420 and $1,430 resistance levels. Crude oil price declined recently and tested the key $55.00 support area.
Important Takeaways for Gold and Oil
- Gold price remained well supported above the $1,400 level and recently climbed higher against the US Dollar.
- There is a major bullish trend line forming with support near $1,430 on the hourly chart of gold.
- Crude oil price started a significant drop below the $58.00 and $57.00 support levels.
- There is a key bearish trend line forming with resistance near $57.20 on the hourly chart of XTI/USD.
Gold Price Technical Analysis
Gold price formed a strong support above the $1,400 level and consolidated for a few sessions against the US Dollar. Finally, the price started a fresh increase and broke the $1,410 and $1,420 resistance levels.
The upward move was strong as the price even broke the key $1,430 resistance area and settled above the 50 hourly simple moving average. Finally, there was break above the $1,445 and $1,450 resistance levels.
A swing high was formed near $1,452 on FXOpen and the price recently started a downside correction. It broke the $1,450 and $1,445 support levels. Moreover, there was a break below the 23.6% Fib retracement level of the recent wave from the $1,414 low to $1,452 high.
However, there are many supports on the downside near the $1,435 and $1,430 levels. Moreover, there is a major bullish trend line forming with support near $1,430 on the hourly chart of gold.
The trend line support is close to the 50% Fib retracement level of the recent wave from the $1,414 low to $1,452 high. Therefore, gold price is likely to find a strong buying interest above the $1,430 level in the near term.
On the upside, an initial resistance is near the $1,450 level. If there is an upside break above $1,450, the price could continue to rise above the $1,455 level in the near term.
Oil Price Technical Analysis
After struggling above the $60.50 level, crude oil price formed a top near the $61.00 level against the US Dollar. The price started a nasty decline and broke many supports near the $58.00 and $57.00 levels.
The decline was such that the price settled below the $58.00 support and 50 hourly simple moving average. It even broke the $56.00 support level and spiked below the $55.00 level.
A swing low was formed near $54.80 and the price is currently correcting higher. The price broke the $55.50 resistance plus the 50% Fib retracement level of the recent decline from the $57.43 high to $54.83 low.
However, the price is facing a strong resistance near the $56.45 level. The 61.8% Fib retracement level of the recent decline from the $57.43 high to $54.83 low is also acting as a resistance.
Moreover, there is a key bearish trend line forming with resistance near $57.20 on the hourly chart of XTI/USD. Therefore, the price seems to be facing a lot of hurdles near the $56.80 and $57.00 levels.
On the downside, an immediate support is near the $55.80 level. If there are more losses, the price may move back towards the $55.00 support level in the near term.