Market Analysis: Gold Prices Climb as Oil Takes a Hit
Gold price rallied further and traded above the $2,750 resistance. Crude oil is showing bearish signs and might decline below $72.20.
Important Takeaways for Gold and Oil Prices Analysis Today
· Gold price started a steady increase from the $2,715 zone against the US Dollar.
· It cleared a connecting bearish trend line with resistance at $2,750 on the hourly chart of gold at FXOpen.
· Crude oil prices failed to clear the $80.00 region and started a fresh decline.
· There is a key bearish trend line forming with resistance at $73.85 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 $2,715 zone. The price remained in a bullish zone and started a strong increase above $2,730.
There was a decent move above the 50-hour simple moving average and $2,750. The bulls pushed the price above the $2,765 and $2,770 resistance levels. Finally, the price climbed as high as $2,785 before there was a pullback.
The price tested the $2,730 zone and is currently rising. There was a move above the 50% Fib retracement level of the downside correction from the $2,785 swing high to the $2,730 low, and the RSI is stable above 60.
Immediate resistance is near the $2,765 level and the 61.8% Fib retracement level of the downside correction from the $2,785 swing high to the $2,730 low.
The next major resistance is near the $2,772 level. An upside break above the $2,772 resistance could send Gold price toward $2,785. Any more gains may perhaps set the pace for an increase toward the $2,800 level.
Initial support on the downside is near $2,750 and the 50-hour simple moving average. The first major support is near the $2,742 zone. If there is a downside break below the $2,742 support, the price might decline further.
In the stated case, the price might drop toward the $2,730 zone. Any more losses might push the price toward the $2,715 level.
Oil Price Technical Analysis
On the hourly chart of WTI Crude Oil at FXOpen, the price struggled to clear the $80.00 resistance zone against the US Dollar. The price started a fresh decline below the $76.35 support.
The price even dipped below the $75.00 level and the 50-hour simple moving average. The bulls are now active near the $72.20 level. A low was formed at $72.16, 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 $79.44 swing high to the $72.16 low at $73.85.
There is also a key bearish trend line forming with resistance at $73.85. The first major resistance is near the $75.80 level or the 50% Fib retracement level of the downward move from the $79.44 swing high to the $72.16 low.
Any more gains might send the price toward the $76.35 level. Any more gains might call for a test of $79.45. Conversely, the price might continue to move down and revisit the $72.20 support. The next major support on the WTI crude oil chart is $70.00.
If there is a downside break, the price might decline toward $70.00. Any more losses may perhaps open the doors for a move toward the $68.50 support zone.
Read more: https://fxopen.com/blog/en/aj-market-analysis-gold-prices-climb-as-oil-takes-a-hit/
Text source: Forex Trading Blog
