Market Analysis: Gold Price Takes Hit While Crude Oil Price Extends Rally
Gold price is declining below the $2,010 support zone. Crude oil price is rising and it could climb further higher toward the $80 resistance.
Important Takeaways for Gold and Oil Prices Analysis Today
· Gold price failed to clear the $2,032 resistance and corrected lower against the US Dollar.
· It traded below a short-term rising channel with support at $2,020 on the hourly chart of gold at FXOpen.
· Crude oil prices are moving higher above the $76.10 resistance zone.
· There is a key bullish trend line forming with support near $77.40 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 $2,020 resistance. The price even broke the $2,030 level before the bears appeared.
The price traded as high as $2,032 before there was a fresh decline, as mentioned in the previous analysis. There was a move below the $2,020 pivot zone. The price settled below the 50-hour simple moving average and RSI dipped below 30. Finally, it tested the $1,988 zone.
The price is now consolidating losses near the $1,990 level. Immediate resistance on the upside is near the $1,998 level or the 23.6% Fib retracement level of the downward move from the $2,031 swing high to the $1,988 low.
The next major resistance is near the 50-hour simple moving average and the 50% Fib retracement level of the downward move from the $2,031 swing high to the $1,988 low at $2,010.
An upside break above the $2,010 resistance could send Gold price toward $2,020. Any more gains may perhaps set the pace for an increase toward the $2,032 level. If there is no recovery wave, the price could continue to move down.
Initial support on the downside is near the $1,988 level. The first major support is $1,980. If there is a downside break below the $1,980 support, the price might decline further. In the stated case, the price might drop toward the $1,962 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 $74.30 resistance.
There was a sustained upward move above the $75.50 and $76.10 levels. The bulls pushed the price above the 50-hour simple moving average and the RSI climbed toward 65. A high was formed near $78.107 before there was a downside correction.
The price declined below the 23.6% Fib retracement level of the upward move from the $75.46 swing low to the $78.07 high. However, the bulls are active above a key bullish trend line with support near $77.40.
Immediate resistance is near the $78.10 level. If the price climbs further higher, it could face resistance near $78.80. The next major resistance is near the $80.00 level. Any more gains might send the price toward the $82.00 level.
Conversely, the price might correct gains and retest the 50-hour simple moving average and the 50% Fib retracement level of the upward move from the $75.46 swing low to the $78.07 high at $76.75.
The next major support on the WTI crude oil chart is near $76.10. If there is a downside break, the price might decline toward $74.30. Any more losses may perhaps open the doors for a move toward the $73.50 support zone.
Text source: Forex Trading Blog
