Market Analysis: Gold Price Corrects Gains While Oil Price Eyes Recovery
Gold price rallied above $2,920 before correcting lower. Crude oil price is recovering and it could climb further higher toward the $71.80 resistance.
Important Takeaways for Gold and Oil Prices Analysis Today
· Gold price rallied significantly above $2,900 and recently corrected lower against the US Dollar.
· A key bearish trend line is forming with resistance at $2,870 on the hourly chart of gold at FXOpen.
· Crude oil prices are moving higher above the $68.90 resistance zone.
· There is a connecting bullish trend line forming with support at $69.50 on the hourly chart of XTI/USD at FXOpen.
Gold Price Technical Analysis
On the hourly chart of Gold at FXOpen, the price was able to climb above the $2,900 resistance, as mentioned in the previous analysis. The price even broke the $2,940 level before the bears appeared.
The price traded close to the $2,960 zone before there was a downside correction. There was a move below the $2,900 pivot zone. The price settled below the 50-hour simple moving average and RSI dipped below 50. Finally, it tested the $2,830 zone.
The price is now correcting losses above the 23.6% Fib retracement level of the downward move from the $2,956 swing high to the $2,832 low. Immediate resistance on the upside is near the 50-hour simple moving average and $2,870.
There is also a key bearish trend line forming with resistance at $2,870. The next major resistance is near the 50% Fib retracement level of the downward move from the $2,956 swing high to the $2,832 low at $2,895.
An upside break above the $2,895 resistance could send Gold price toward $2,928. Any more gains may perhaps set the pace for an increase toward the $2,950 level. If there is no fresh increase, the price could continue to move down.
Initial support on the downside is near the $2,852 level. The first major support is $2,832. If there is a downside break below the $2,832 support, the price might decline further. In the stated case, the price might drop toward the $2,810 support.
Oil Price Technical Analysis
On the hourly chart of WTI Crude Oil at FXOpen, the price started a decent increase against the US Dollar. The price gained bullish momentum after it broke the $68.90 resistance.
The bulls pushed the price above the 50-hour simple moving average and the RSI climbed toward 65. There was a clear move above the 50% Fib retracement level of the downward move from the $71.12 swing high to the $68.24 low.
Immediate resistance is near the $70.45 level. It is close to the 76.4% Fib retracement level of the downward move from the $71.12 swing high to the $68.24 low.
If the price climbs further higher, it could face resistance near $71.10. The next major resistance is near the $71.80 level. Any more gains might send the price toward the $72.50 level.
Conversely, the price might correct gains and test the $69.50 support. There is also a connecting bullish trend line forming with support at $69.50 and the 50-hour simple moving average.
The next major support on the WTI crude oil chart is near the $68.90 level. If there is a downside break, the price might decline toward $68.25. Any more losses may perhaps open the doors for a move toward the $66.50 support zone.
Text source: Forex Trading Blog
