Gold price is failed to continue above $1,550 and $1,555, and recently started a downside correction. Crude oil price is currently rising and it could climb above $57.00.
Important Takeaways for Gold and Oil
- Gold price is currently correcting lower below the $1,540 support area against the US Dollar.
- There was a break below a major bullish trend line with support near $1,535 on the hourly chart of gold.
- Crude oil price is showing a few positive signs and it could climb above the $57.00 resistance.
- There is a key bullish trend line forming with support near $55.00 on the hourly chart of XTI/USD.
Gold Price Technical Analysis
Earlier this week, gold price climbed above the $1,535 and $1,540 resistance levels against the US Dollar. The price even broke the $1,550 resistance level and traded to a new yearly high at $1,555.
However, the price struggled to gain momentum above the $1,550 and $1,555 resistance levels. The last swing high was formed near $1,550 on FXOpen and the price started a fresh downside correction.
The price broke the $1,540 support and the 50 hourly simple moving average. Moreover, there was a break below a major bullish trend line with support near $1,535 on the hourly chart of gold. The price even broke the $1,525 support level.
The recent low was formed near $1,519 and the price is currently correcting higher. It tested the 23.6% Fib retracement level of the recent decline from the $1,550 high to $1,519 low.
However, there are many hurdles on the upside near the $1,535 and $1,540 levels. Moreover, the 50% Fib retracement level of the recent decline from the $1,550 high to $1,519 low is positioned near the $1,535 level to act as a resistance.
Therefore, if the price corrects higher, it could struggle near the $1,535 and $1,540 resistance levels. On the downside, an immediate support is near the $1,520 level. If there is a downside break below the $1,520 support area, the price could decline further towards the $1,505 and $1,500 support levels.
Oil Price Technical Analysis
There was a strong support formed near $53.20 in crude oil price against the US Dollar. The price started a steady rise and climbed above the $54.00 and $55.00 resistance levels.
It opened the doors for more gains above the $55.50 resistance and the 50 hourly simple moving average. Finally, the price surged above $56.00 and traded to a new weekly high at $56.73.
At the moment, the price is consolidating losses near the $56.40 level plus the 23.6% Fib retracement level of the recent wave from the $55.29 low to $56.73 high. On the downside, there are many supports near the $56.20 and $56.00 levels.
The 50% Fib retracement level of the recent wave from the $55.29 low to $56.73 high is also near the $56.00 level to act as a support. Moreover, there is a key bullish trend line forming with support near $55.00 on the hourly chart of XTI/USD.
An intermediate support is near the $55.80 level and the 50 hourly simple moving average. Therefore, a downside correction from the current levels remain supported near $56.00 and $55.80.
On the upside, a clear break above the $57.00 resistance area is likely to open the doors for more gains towards the $58.00 and $58.40 resistance levels in the near term.
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