XAU/USD (GOLD):
The XAU/USD chart currently exhibits bullish momentum, with factors contributing to this momentum being the breakout above a descending resistance line, triggering a potential bullish move.
Given this bullish momentum, price could potentially experience a bullish bounce off the 1st support and continue its upward movement towards the 1st resistance.
The 1st support level at 1889.42 is considered significant as it aligns with a pullback support, indicating a potential strong support area. This level may act as a foundation for any potential pullbacks, providing a base for the bullish trend. Additionally, the 2nd support at 1808.81 is characterized as a multi-swing low support, further reinforcing its significance as a potential support zone.
On the resistance side, the 1st resistance at 1982.09 is identified as an overlap resistance, potentially acting as a barrier to further bullish advances. Waiting for upside confirmation at the level of 1946.68, which is also identified as an overlap resistance, adds weight to its importance as a resistance area.
WTI/USD:
The WTI chart currently shows a bearish momentum, indicating the potential for a bearish reaction off the 1st resistance level and a drop towards the 1st support.
The 1st support at 82.65 is considered significant as it aligns with an overlap support level and coincides with the 50% Fibonacci Retracement level. This confluence of technical factors makes it a strong potential support zone. Additionally, the 2nd support at 77.42 is identified as another overlap support level and corresponds to the 61.80% Fibonacci Retracement level, further reinforcing its credibility as a potential support area.
On the resistance side, the 1st resistance at 87.70 is characterized as a pullback resistance, which could potentially act as a barrier to the bearish momentum. Beyond this, the 2nd resistance at 92.59 is identified as an overlap resistance level.
