Gold price topped near the $1,237 level and declined recently. Crude oil price is under a lot of pressure and it may slide further towards the $60.00 or $58.00 levels.
Important Takeaways for Gold and Oil
- Gold price traded higher nicely until sellers appear near the $1,236-1,237 zone against the US Dollar.
- There was a break below a major bullish trend line with support at $1,226 on the hourly chart of gold.
- Crude oil price declined heavily recently after topping above the $68.00 pivot level.
- There is a key declining channel in place with resistance at $61.70 on the hourly chart of XTI/USD.
Gold Price Technical Analysis
Gold price followed a nice upward move from the $1,212 support area against the US Dollar. The price traded higher and it broke key resistances near the $1,220 and $1,224 levels before sellers appeared near $1,237.
The upside move was positive as the price broke the $1,230 resistance and the 50 hourly simple moving average as well. However, the price faced a lot of selling interest near the $1,236, $1,237 and $1,238 resistance levels.
A swing high was formed at $1,237.36 on FXOpen before the price started a downside move. It broke a major bullish trend line with support at $1,226 on the hourly chart. Besides, there was a break below the 61.8% Fib retracement level of the last wave from the $1,212 low to $1,237 high.
It opened the doors for more losses and pushed the price in a bearish zone below the $1,220 support. It seems like the price may continue to move down towards the $1,212 support area in the near term.
On the other hand, if there is an upside correction, the price may face sellers near the $1,221 level. Above $1,220-1,221, the price could retest the $1,225 resistance and the 50 hourly simple moving average where sellers are likely to emerge.
Overall, gold is currently following a bearish path towards the $1,212 support and any recovery is likely to face sellers on the upside.
Oil Price Technical Analysis
Crude oil price failed to hold gains above the $68.00 pivot level and declined heavily against the US Dollar. The price traded lower and broke a few key supports near the $66.00 and $64.00 levels.
The recent decline was such that the price even broke the $62.00 support and the 50 hourly simple moving average. It traded close to the $60.00 support recently and formed a low at $60.42.
At the moment, the price is consolidating losses and it could test the 23.6% Fib retracement level of the recent decline from the $62.50 high to $60.42 low. More importantly, there is a key declining channel in place with resistance at $61.70 on the hourly chart of XTI/USD.
Around the channel resistance, the 50 hourly SMA is positioned along with the 50% Fib retracement level of the recent decline from the $62.50 high to $60.42 low.
Therefore, if the price corrects higher from the current levels, sellers are likely to appear near the $61.20, $61.50 or $61.80 resistance levels.
On the downside, a downside break below the recent low at $60.40 will most likely increase chances of a push below the $60.00 support. The next major support in the mentioned case could be near the $59.40 level.