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.
