Asia - Commodities Technical Outlook and Review | 14 December 2023
XAU/USD (GOLD):
The XAU/USD chart currently demonstrates a bearish overall momentum, indicating a downward trend in the price of gold against the US Dollar. Price could potentially continue this bearish movement towards the 1st support level.
The 1st support at 2006.13 is identified as a significant level, categorized as pullback support. This suggests that it has the potential to act as a level where buying interest may emerge temporarily, providing support for the price of gold.
The 2nd support at 1975.03 is also noteworthy as it is an overlap support. Overlap supports typically indicate areas where historical price action has found support, making this level another potential area for buying interest.
On the resistance side, the 1st resistance at 2035.54 is categorized as an overlap resistance, indicating historical significance as a level where selling pressure may intensify. This level should be closely monitored for potential price reactions.
The 2nd resistance at 2069.35 is identified as a pullback resistance, suggesting it may act as a barrier where selling interest could increase.
WTI/USD:
The WTI chart currently exhibits an overall bearish momentum, suggesting a prevailing downward trend. However, there is a potential for price to make a bullish movement towards the 1st resistance before resuming the downtrend and fall towards the 1st support.
The 1st resistance level at 72.57 is identified as an overlap resistance that aligns with the 38.20% Fibonacci retracement level. Higher up, the 2nd resistance level at 74.23 is also marked as an overlap resistance that aligns close to the 50.00% Fibonacci retracement level, further indicating its potential significance as a barrier for further upward movement.
To the downside, the 1st support level at 67.32 is identified as a pullback support. Further below, the 2nd support level at 64.32 is noted as multi-swing-low support, reinforcing its importance as a key support level.
