Gold price is currently correcting lower from the $2,088 resistance, while the price of crude oil is on the rise, with the possibility of climbing further toward the $75.90 resistance level.
Gold Price Technical Analysis:
On the hourly chart of Gold at FXOpen, the price initially climbed above the $2,050 resistance, reaching as high as $2,088 before undergoing a downside correction. The correction resulted in a move below the $2,060 pivot zone, settling below the 50-hour simple moving average and driving RSI below 50. Following this, the price was able to test the $2,030 zone.
As of now, the price is attempting a recovery wave above the $2,040 level and has surpassed the 23.6% Fib retracement level. If the bulls manage to remain active, a fresh increase in price is possible, with immediate resistance near the 50-hour simple moving average at $2,046. The next major resistance is expected near the 50% Fib retracement level at $2,055, followed by an upside break above the $2,055 resistance, leading to a potential climb toward $2,078. On the downside, initial support is around the $2,042 level, with a key contracting triangle forming around the same level. Any downside break below $2,030 could result in further price declines, potentially reaching $2,010.
Oil Price Technical Analysis:
On the hourly chart of WTI Crude Oil at FXOpen, the price initiated a decent increase against the US Dollar after surpassing the $71.00 resistance. The upward movement continued above the $71.50 and $72.20 levels, with immediate resistance near the 76.4% Fib retracement level at $73.35. Further gains could lead the price to test $74.00 and $75.90, possibly even reaching the $78.00 level. However, if the price undergoes a correction, it may retest the 50-hour simple moving average and a connecting bullish trend line at $72.60, with major support near $71.00, and the possibility of declining toward $69.40 and $68.00 support zones.
Additional Insight:
The technical analysis of gold and oil prices raises the possibility of contrasting movements in the near future. Gold’s potential recovery wave could result in a fresh increase, but a downside break may lead to further declines. Conversely, oil’s bullish momentum may propel it to higher resistance levels, but a correction could see it retracing back toward support zones. Investors and traders are advised to closely monitor these price movements and related fundamental factors to make informed trading decisions.
