Gold Price Slides Below Key Support, Oil Price Trims Gains

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Gold price started a major decline below the $1,850 and $1,820 support levels. Crude oil price is also trimming gains and it traded below $70.50.

Important Takeaways for Gold and Oil

  • Gold price started a fresh decline from well above the $1,850 level against the US Dollar.
  • There is a connecting bearish trend line forming with resistance near $1,825 on the hourly chart of gold.
  • Crude oil price climbed higher towards $72.75 before correcting lower.
  • There was a break below a major bullish trend line with support near $71.20 on the hourly chart of XTI/USD.

Gold Price Technical Analysis

This week, gold price faced an increase in selling pressure near $1,900 against the US Dollar. The price started a major decline and it traded below many important supports near $1,880 and $1,850.

The price even settled below the $1,850 level and the 50 hourly simple moving average. There was a break below the $1,820 support and $1,800. A low is formed near $1,762 on FXOpen and the price is now correcting losses.

Gold Price Technical Analysis

An immediate resistance on the upside is near the $1,790 level. It is near the 23.6% Fib retracement level of the recent decline from the $1,862 swing high to $1,762 low.

The first major resistance is near the $1,800 level. There is also a connecting bearish trend line forming with resistance near $1,825 on the hourly chart of gold. An intermediate resistance is near the $1,815 level and the 50 hourly SMA.

The 50% Fib retracement level of the recent decline from the $1,862 swing high to $1,762 low is also near the $1,815 level. Conversely, the price might resume its decline below $1,780. An initial support is near the $1,775 level.

The first major support is near the $1,765 level. The next key support is near the $1,750 level, below which the price might continue to move down towards the $1,720 level in the near term.

Oil Price Technical Analysis

Crude oil price extended its upward move above the $70.00 level against the US Dollar. The price even climbed above the $72.00 level and it traded to a new multi-month high.

A high was formed near $72.71 before the price started a downside correction. There was a break below the $71.20 level and the 50 hourly simple moving average. The price even broke the $70.00 support zone.

Oil Price Technical Analysis

A low was formed near $69.51 and the price is now recovering higher. It climbed above the 23.6% Fib retracement level of the recent decline from the $72.71 high to $69.51 low.

It is now facing resistance near the $70.70 level. The next key resistance is near the $71.10 level. It is near the 50% Fib retracement level of the recent decline from the $72.71 high to $69.51 low. The main resistance is now forming near $71.50 and the 50 hourly simple moving average.

On the downside, an initial support is forming near the $70.00 level. The main support is now forming near the $69.50 level. A downside break below the recent low could open the doors for a move towards the $68.80 support level. Any more losses may possibly lead the price towards the $67.50 support 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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