Gold price found support near the $1,455 level and it is currently consolidating losses. Conversely, crude oil price is recovering and it is now trading above the $25.00 resistance.
Important Takeaways for Gold and Oil
- Gold price declined heavily before it found support near the $1,455 level against the US Dollar.
- The bulls are currently attempting a break above a connecting bearish trend line at $1,462 on the hourly chart of gold.
- Crude oil price started a decent upside correction after it fell close to the $20.00 level.
- There was a break above a major bearish trend line with resistance near $24.85 on the hourly chart of XTI/USD.
Gold Price Technical Analysis
In the past few days, gold price followed a bearish path from well above the $1,580 level against the US Dollar. It broke a couple of key supports near the $1,550 to move further into a bearish zone.
Moreover, there was a close below the $1,500 level and the 50 hourly simple moving average. Finally, it traded as low as $1,455 on FXOpen and it is now consolidating losses.
It seems like there is likely a double bottom pattern forming near the $1,455 level. The price is trading above the 23.6% Fib retracement level of the recent decline from the $1,553 high to $1,455 low.
Moreover, the bulls are currently attempting a break above a connecting bearish trend line at $1,462 on the hourly chart of gold. If they succeed, the price might start a decent recovery towards the $1,500 resistance level.
The 50 hourly simple moving average is close to the $1,500 level to act as a key resistance. The 50% Fib retracement level of the recent decline from the $1,553 high to $1,455 low is also near the $1,505 level.
Therefore, the price is likely to face a strong resistance near $1,500 and $1,505. A successful close above the $1,500 and $1,505 levels might start a strong rise.
Conversely, the price could start another decline and it might even trade below the $1,455 and $1,450 support levels in the near term.
Oil Price Technical Analysis
Recently, crude oil price declined heavily below the $35.00 and $30.00 support levels against the US Dollar. The bears were able to lead the price below the $25.00 support level.
It traded close to the $20.00 support and a new yearly low is formed near $20.44. The price is currently correcting higher and trading above the $22.00 resistance.
During the rise, there was a break above a major bearish trend line with resistance near $24.85 on the hourly chart of XTI/USD. The price is now trading above the $25.00 resistance and the 50 hourly simple moving average.
It is now testing the 50% Fib retracement level of the downward move from the $34.19 high to $20.44 low. If there is an upside break above $27.30, the next hurdle is near the $28.95 level.
Besides, the 61.8% Fib retracement level of the downward move from the $34.19 high to $20.44 low is near the $28.95 level. Therefore, the price must surpass the $27.30 and $29.00 levels to climb further higher.
If not, it could start a fresh decline below $26.00. The first support for oil price is near the $25.00 level, below which it could decline towards the $22.00 level.
Be the first to comment