HomeContributorsTechnical AnalysisCrude Oil Price Turns Red, Risk of More Losses

Crude Oil Price Turns Red, Risk of More Losses

Key Highlights

  • Crude oil price started a fresh decline from the $103.50 resistance.
  • A key bearish trend line is forming with resistance near $100.20 on the 4-hours chart.
  • EUR/USD struggled to clear 1.0280 and started a downside correction.
  • GBP/USD started a downside correction from the 1.2300 zone.

Crude Oil Price Technical Analysis

After a steady increase above the $100 level, crude oil price faced sellers against the US Dollar. The price struggled to clear the $103.50 resistance zone and started a fresh decline.

Looking at the 4-hours chart of XTI/USD, there was a bearish reaction below the $102.00 and $101.00 levels. The price even settled below the $100 level, the 100 simple moving average (red, 4-hours) and the 200 simple moving average (green, 4-hours).

It traded below the 61.8% Fib retracement level of the upward move from the $90.74 swing low to $102.58 high. If the bears remain in action, there is a risk of a move towards the $91.50 support zone.

The next major support is near $90.50. The main support sits near $90, below which there is a risk of a move towards the $88.00 level. Any more losses might call for a test of the $85 zone.

On the upside, the price is facing resistance near the $98.50 level. Besides, there is a key bearish trend line forming with resistance near $100.20 on the same chart. A clear move above the trend line resistance could set the pace for a larger increase towards $103. The next major resistance is near $103.50, above which the price could accelerate higher towards the $106 zone.

Looking at the EUR/USD pair, the pair failed to extend its recovery above 1.0280 and corrected lower. Similarly, GBP/USD dipped below the 1.2200 support.

Economic Releases to Watch Today

  • BoE Interest Rate Decision – Forecast 1.75%, versus 1.25% previous.
  • US Initial Jobless Claims – Forecast 259K, versus 256K previous.
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