Market Analysis: Gold Price and Crude Oil Price Correct Recent Gains
Gold price started a downside correction from $2,485. Crude oil prices are also moving lower from the $82.20 resistance zone.
Important Takeaways for Gold and Oil Prices Analysis Today
- Gold price climbed higher toward the $2,485 zone before there was a pullback against the US Dollar.
- A key bearish trend line is forming with resistance near $2,450 on the hourly chart of gold at FXOpen.
- Crude oil prices extended downsides below the $81.30 support zone.
- A major contracting triangle is forming with resistance near $80.70 on the hourly chart of XTI/USD at FXOpen.
Gold Price Technical Analysis
On the hourly chart of Gold at FXOpen, the price rallied heavily above the $2,425 resistance. The price even spiked above $2,480 before the bears appeared.
A high was formed near $2,483 before there was a downside correction. There was a move below the $2,465 support level. The bears even pushed the price below the $2,450 support and the 50-hour simple moving average.
The price declined below the 50% Fib retracement level of the upward move from the $2,391 swing low to the $2,483 high. If the bears remain in action, the price might decline further.
Initial support on the downside is near the $2,425 level. It is near the 61.8% Fib retracement level of the upward move from the $2,391 swing low to the $2,483 high. The first major support is near the $2,410 level.
If there is a downside break below the $2,410 support, the price might decline further. In the stated case, the price might drop toward the $2,390 support.
On the upside, there is a key bearish trend line forming with resistance near $2,450 and the 50-hour simple moving average. The next major resistance is near the $2,485 level. The main resistance could be $2,500, above which the price could test the $2,520 resistance. The next major resistance is $2,550.
An upside break above the $2,550 resistance could send Gold price toward $2,580. Any more gains may perhaps set the pace for an increase toward the $2,600 level.
Oil Price Technical Analysis
On the hourly chart of WTI Crude Oil at FXOpen, the price struggled to continue higher above $82.20 against the US Dollar. The price formed a short-term top and started a fresh decline below $81.30.
The bears even pushed the price below $80.70 and the 50-hour simple moving average. The price even declined below the 50% Fib retracement level of the upward move from the $79.25 swing low to the $82.18 high.
The price tested the $80.40 support zone and the 61.8% Fib retracement level of the upward move from the $79.25 swing low to the $82.18 high.
Immediate support is near the $80.40 level. The next major support on the WTI crude oil chart is near $79.95. If there is a downside break, the price might decline toward $79.25. Any more losses may perhaps open the doors for a move toward the $78.00 support zone.
On the upside, immediate resistance is near a major contracting triangle at $80.70 and the 50-hour simple moving average. The next resistance is near the $81.30 level.
The main resistance is near a trend line at $82.20. A clear move above the $82.20 zone could send the price toward $82.50. The next key resistance is near $83.20. If the price climbs further higher, it could face resistance near $84.50. Any more gains might send the price toward the $85.00 level.
Read more: https://fxopen.com/blog/en/aj-market-analysis-gold-price-and-crude-oil-price-correct-recent-gains/
Text source: Forex Trading Blog
