Key Highlights
- Crude oil price rallied above the $90 and $92.50 resistance levels.
- A key bullish trend line is forming with support near $88.00 on the 4-hour chart.
- Gold prices failed to clear the $1,950 resistance.
- EUR/USD could recover if it clears the 1.0720 resistance.
Crude Oil Price Technical Analysis
Crude oil price started a fresh increase after a close above $88 against the US Dollar. The price rallied above the $90 and $90.50 resistance levels.
Looking at the 4-hour chart of XTI/USD, the price settled well above the $90 level, the 100 simple moving average (red, 4-hour) and the 200 simple moving average (green, 4-hour).
Finally, it traded to a new multi-week high at $92.92. Recently, there was a minor downside correction below the $91.20 level. However, the bulls seem to be active above the $89.40 level. The 23.6% Fib retracement level of the upward move from the $77.85 swing low to the $92.92 high is also near $89.40.
The next major support sits near the $88.00 zone. There is also a key bullish trend line forming with support near $88.00 on the same chart.
Any more losses might call for a test of the $87.15 support zone or a trend change and drop toward the $82.00 support zone.
On the upside, the price might face resistance near the $92.50 level. The next major resistance is near the $93.20 level, above which the price may perhaps accelerate higher. In the stated case, it could even visit the $95 resistance.
Looking at gold prices, there was a decent increase and the price was able to surpass the $1,935 resistance zone.
Economic Releases to Watch Today
- BoE Interest Rate Decision – Forecast 5.5%, versus 5.25% previous.
- US Initial Jobless Claims – Forecast 225K, versus 220K previous.
