Fri, Feb 03, 2023 @ 15:56 GMT
HomeContributorsTechnical AnalysisCrude Oil Price Clears Hurdle Ahead of Fed Rate Decision

Crude Oil Price Clears Hurdle Ahead of Fed Rate Decision

Key Highlights

  • Crude oil price started a fresh increase above the $73 resistance.
  • It broke a key bearish trend line with resistance near $73.20 on the 4-hours chart.
  • Gold price gained pace and cleared the $1,800 resistance zone.
  • The Fed interest rate decision is scheduled today (forecast 4.5%, versus 4% previous).

Crude Oil Price Technical Analysis

Crude oil price started a fresh increase from the $70.20 support zone against the US Dollar. The price gained pace and traded above the $73.00 resistance zone.

Looking at the 4-hours chart of XTI/USD, there was a break above a major bearish trend line with resistance near $73.20. There was a clear move above the 23.6% Fib retracement level of the main decline from the $82.91 swing high to $70.22 low.

It opened the doors for a move above the $74.50 resistance and the 100 simple moving average (red, 4-hours). On the upside, the price might face sellers near the $76.50 zone and the 200 simple moving average (green, 4-hours).

The next major resistance is near $78, above which the price could test $80 resistance. A clear move above the $80 resistance could open the doors for another steady increase in the coming days.

An immediate support is now forming near the $73.20 zone and the 100 simple moving average (red, 4-hours). The next major support is near $72.10 zone. Any more losses might call for a test of the $70.20 support zone.

Looking at gold price, there was a steady increase above the $1,800 resistance and there could be more upsides in the near term.

Economic Releases to Watch Today

  • UK Consumer Price Index for Nov 2022 (YoY) – Forecast +10.9%, versus +11.1% previous.
  • UK Core Consumer Price Index for Nov 2022 (YoY) – Forecast +6.5%, versus +6.5% previous.
  • Fed Interest Rate Decision – Forecast 4.5%, versus 4% previous.
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