Market Analysis: Gold Price Regains Strength While Oil Price Takes Hit
Gold price started another increase and surpassed the $2,440 resistance. Crude oil is showing bearish signs and might decline below $75.00.
Important Takeaways for Gold and Oil Prices Analysis Today
· Gold price started a steady increase from the $2,420 zone against the US Dollar.
· A key bullish trend line is forming with support near $2,440 on the hourly chart of gold at FXOpen.
· Crude oil prices failed to clear the $78.20 region and started a fresh decline.
· There was a break below a connecting bullish trend line with support at $77.50 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 $2,320 zone. The price remained in a bullish zone and started a strong increase above $2,400.
There was a decent move above the 50-hour simple moving average and $2,420. The bulls pushed the price above the $2,435 and $2,440 resistance levels. Finally, the price tested the $2,455 zone and the price is now consolidating losses.
The price is showing positive signs above the 23.6% Fib retracement level of the upward move from the $2,369 swing low to the $2,462 high, and the RSI is stable above 50.
Initial support on the downside is near $2,440. There is also a key bullish trend line forming with support near $2,440 and the 50-hour simple moving average. The first major support is near the $2,415 zone. It is close to the 50% Fib retracement level of the upward move from the $2,369 swing low to the $2,462 high.
If there is a downside break below the $2,415 support, the price might decline further. In the stated case, the price might drop toward the $2,390 support.
Immediate resistance is near the $2,445 level. The next major resistance is near the $2,450 level. An upside break above the $2,450 resistance could send Gold price toward $2,460. Any more gains may perhaps set the pace for an increase toward the $2,480 level.
Oil Price Technical Analysis
On the hourly chart of WTI Crude Oil at FXOpen, the price struggled to clear the $78.20 resistance zone against the US Dollar. The price started a fresh decline below the $77.00 support.
There was a break below a connecting bullish trend line with support at $77.50. There was a steady decline below the 50% Fib retracement level of the upward move from the $74.23 swing low to the $78.25 high.
The pair is now consolidating below the 50-hour simple moving average. Finally, the price tested the 61.8% Fib retracement level of the upward move from the $74.23 swing low to the $78.25 high.
If there is a fresh increase, it could face resistance near $77.00 and the 50-hour simple moving average. The first major resistance is near the $78.20 level. Any more gains might send the price toward the $79.50 level. Any more gains might call for a test of $80.00.
Conversely, the price might continue to move down and revisit the $75.20 support. The next major support on the WTI crude oil chart is $74.20.
If there is a downside break, the price might decline toward $73.50. Any more losses may perhaps open the doors for a move toward the $72.50 support zone.
Read more: https://fxopen.com/blog/en/aj-market-analysis-gold-price-regains-strength-while-oil-price-takes-hit/
Text source: Forex Trading Blog
