Market Analysis: Gold Consolidates While WTI Crude Oil Faces Continued Struggles
Gold price is consolidating above the $2,600 support zone. Crude oil is showing bearish signs and might decline below $66.80.
Important Takeaways for Gold and Oil Prices Analysis Today
· Gold price started a recovery wave from the $2,610 zone against the US Dollar.
· A key bearish trend line is forming with resistance at $2,650 on the hourly chart of gold at FXOpen.
· Crude oil prices failed to clear the $70.00 region and started a fresh decline.
· There is a connecting bearish trend line forming with resistance at $67.50 on the hourly chart of XTI/USD at FXOpen.
Gold Price Technical Analysis
On the hourly chart of Gold at FXOpen, the price found support near the $2,610 zone. The price remained in a bullish zone and started a recovery wave above $2,620.
There was a decent move above the 50-hour simple moving average and $2,635. The bulls pushed the price above the $2,640 zone. Finally, the price climbed as high as $2,650 before the bears appeared. The price is now consolidating below $2,650.
There was a move below the 23.6% Fib retracement level of the upward move from the $2,613 swing low to the $2,650 high, and the RSI is stable above 50.
Initial support on the downside is near $2,632. The first major support is near the $2,628 zone. It is near the 61.8% Fib retracement level of the upward move from the $2,613 swing low to the $2,650 high. If there is a downside break below the $2,628 support, the price might decline further.
In the stated case, the price might drop toward $2,612. Any more losses might push the price toward the $2,600 level. Immediate resistance is near the $2,650 level.
There is also a key bearish trend line forming with resistance at $2,650. The next major resistance is near the $2,655 level. An upside break above the $2,655 resistance could send Gold price toward $2,670. Any more gains may perhaps set the pace for an increase toward the $2,685 level.
Oil Price Technical Analysis
On the hourly chart of WTI Crude Oil at FXOpen, the price struggled to clear the $70.00 resistance zone against the US Dollar. The price started a fresh decline below the $68.80 support.
The price even dipped below the $67.80 level and the 50-hour simple moving average. The bulls are now active near the $66.80 level. A low was formed at $66.78 and the price is now consolidating losses. If there is a fresh increase, it could face resistance near the 23.6% Fib retracement level of the downward move from the $70.10 swing high to the $66.78 low.
There is also a connecting bearish trend line forming with resistance at $67.50. The first major resistance is near the $67.80 level, above which the price could rise and test the 61.8% Fib retracement level of the downward move from the $70.10 swing high to the $66.78 low at $68.80.
Any more gains might send the price toward the $69.60 level. Conversely, the price might continue to move down and revisit the $66.80 support. The next major support on the WTI crude oil chart is $66.00.
If there is a downside break, the price might decline toward $63.50. Any more losses may perhaps open the doors for a move toward the $61.20 support zone.
Text source: Forex Trading Blog
