Mon, May 29, 2023 @ 02:40 GMT
HomeContributorsTechnical AnalysisCrude Oil Price Nosedives, Fed Hiked Rates Again

Crude Oil Price Nosedives, Fed Hiked Rates Again

Key Highlights

  • Crude oil prices started a fresh decline below the $75 support.
  • A major bearish trend line is forming with resistance near $74.00 on the 4-hour chart.
  • EUR/USD and GBP/USD remained in a positive zone.
  • The Fed increased interest rates from 5% to 5.25%.

Crude Oil Price Technical Analysis

Crude oil prices struggled to start a fresh increase above $78 against the US Dollar. The price remained in a bearish zone and gained momentum below the $75 support.

Looking at the 4-hour chart of XTI/USD, the price settled below the $72.50 support zone, the 100 simple moving average (red, 4-hour), and the 200 simple moving average (green, 4-hour).

The decline was such that the price even dropped below the $70 support. The current price action suggests chances of more losses below the $68 support. The next major support sits near the $66.20 level.

Any more losses might call for a test of the $65.00 support zone in the coming sessions. On the upside, the price is facing resistance near the $70.50 level.

The next major resistance is near the $72.00 zone. Besides, there is a major bearish trend line forming with resistance near $74.00 on the same chart. A clear move above the trend line resistance might send the price toward the $77 resistance.

Looking at EUR/USD, the pair remained in a positive zone above the 1.0975 support and might aim for more upsides toward 1.1120.

Economic Releases to Watch Today

  • US Goods and Services Trade Balance for March 2023 – Forecast $-63.3B, versus $-70.5B previous.
  • US Initial Jobless Claims – Forecast 240K, versus 230K previous.
Titan FX
Titan FX
Titan FX is a technology driven online ECN forex and commodities broker that provides traders with next generation trading conditions, institutional grade spreads, fast trade execution, deep top tier liquidity and the security of financial registration and oversight.

Featured Analysis

Learn Forex Trading