Mon, Sep 27, 2021 @ 02:16 GMT
HomeContributorsTechnical AnalysisCrude Oil Price Starts Fresh Rally Above $70

Crude Oil Price Starts Fresh Rally Above $70

Key Highlights

  • Crude oil price started a fresh increase from the $67.50 support zone.
  • There was a break above a key bearish trend line at $69.60 on the 4-hours chart of XTI/USD.
  • EUR/USD stayed above the 1.1780 support, and GBP/USD was rejected near the 1.3900 resistance.
  • The US CPI increased 5.3% in August 2021 (YoY), down from 5.4%.

Crude Oil Price Technical Analysis

After forming a support base above $67.50, crude oil price started a fresh increase against the US Dollar. The price broke the $68.500 resistance zone to move into a positive zone.

Looking at the 4-hours chart of XTI/USD, the price even climbed above the $69.50 resistance zone. There was a clear break above a key bearish trend line with resistance at $69.60.

The bulls were able to clear the $70.00 barrier and the last swing high at $70.70. The price also settled well above the 100 simple moving average (4-hours, red) and the 200 simple moving average (4-hours, green).

On the upside, an initial resistance is near the $71.45 level. It is near the 1.236 Fib extension level of the last key decline from the $70.70 swing high to $67.61 low.

The next major resistance is near the $72.00 level, above which the price could rise towards the $73.50 level. On the downside, an immediate support is near the $70.00 level. The first major support is near $68.50 and the 100 simple moving average (4-hours, red). Any more losses could open the doors for a move towards $67.80 support zone.

Looking at EUR/USD, the pair corrected lower, but the bulls were able to protect the 1.1780 support zone. Besides, GBP/USD was able to spike above the 1.3900 resistance zone before it corrected gains.

Economic Releases to Watch Today

  • UK Consumer Price Index for August 2021 (YoY) – Forecast +2.9%, versus +2.2% previous.
  • UK Core Consumer Price Index for August 2021 (YoY) – Forecast +2.9%, versus +1.8% previous.
  • Canadian Consumer Price Index for August 2021 (MoM) – Forecast +0.1%, versus +0.6% previous.
  • Canadian Consumer Price Index for August 2021 (YoY) – Forecast +3.9%, versus +3.7% previous.
  • US Industrial Production for August 2021 (MoM) – Forecast 0.5%, versus 0.9% previous.

 

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