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Crude Oil Price Dips, Can This Key Support Hold?

Key Highlights

  • Crude oil price started a fresh decline from well above $90.
  • A major bearish trend line is forming with resistance near $87.20 on the 4-hours chart.
  • Gold price started a consolidation phase after a strong move above $1,750.
  • Bitcoin price remains at risk of more losses unless it clears $17,500.

Crude Oil Price Technical Analysis

Crude oil price started a fresh decline from the $93.50 zone against the US Dollar. The price gained pace and traded below the $90.00 support zone.

Looking at the 4-hours chart of XTI/USD, there was a break below the $88.80 support zone. The price even settled below the $88.00 level, the 100 simple moving average (red, 4-hours), and the 200 simple moving average (green, 4-hours).

The bears seem to be in control, with an immediate support near the $84.00 zone. The next major support is near $82.65 zone. Any more losses might call for a test of the $80.00 support zone in the coming days.

On the upside, the price might face sellers near the $86.50 zone. The next major resistance is near $87.00 and a connecting bearish trend line, above which the price could test the 100 simple moving average (red, 4-hours).

A clear move above the 100 simple moving average (red, 4-hours) and the $88.80 resistance could open the doors for a steady increase in the coming sessions.

Looking at gold price, there was a steady increase above the $1,750 and $1,760 resistance. It is now consolidating gains below the $1,800 level.

Economic Releases to Watch Today

  • US Initial Jobless Claims – Forecast 225K, versus 225K previous.
  • US Housing Starts for Oct 2022 (MoM) – Forecast 1.410M, versus 1.439M previous.
  • US Building Permits for Oct 2022 (MoM) – Forecast 1.512M, versus 1.564M previous.
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