Gold is currently on a path towards recovery as it attempts to surpass the $2,400 resistance zone. After finding support near $2,352 against the US Dollar, the price has started a positive wave above $2,365. The recent movement on the 4-hour chart of XAU/USD shows that the price has crossed the $2,380 level along with the 200 Simple Moving Average. Additionally, it has broken a bearish trend line with resistance at $2,388.
Resistance and Support Levels
As the price faces resistance near the $2,400 zone and the 100 Simple Moving Average, the next major resistance is expected near $2,420. This level is crucial as it aligns with the 50% Fib retracement level from the recent downward swing. A clear breakthrough above $2,420 could potentially lead to further upside movement towards $2,432 and even $2,445. However, failure to breach this resistance could result in a downward trend towards the $2,365 support level and the 200 Simple Moving Average.
As for major support, it is currently forming near $2,352; a crucial level that if broken, could lead to a drop towards $2,340. The price action around these support and resistance levels will determine the future trajectory of gold prices.
Oil Market Outlook
In contrast to gold, oil prices have been facing continued bearish pressure as they extend losses below $75.50. The market sentiment suggests that bears are in control and there is a possibility of further downside movement below the $75.00 support region. It will be essential to monitor the price action in the oil market to gauge where it might head next.
Overall, the movements in the gold and oil markets are crucial for traders and investors to keep a close eye on. The analysis points towards a potential recovery in gold prices, while oil prices are currently under bearish pressure. The key levels of support and resistance will play a significant role in determining the direction of these commodities in the coming days.
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