Key Highlights
- Crude oil prices declined heavily below the $73.50 support.
- A connecting bearish trend line is forming with resistance near $71.45 on the 4-hour chart.
- Gold prices also declined and traded below the $2,000 support.
- The Fed interest rate decision is scheduled today (forecast 5.5%, versus 5.5% previous).
Crude Oil Price Technical Analysis
In the past few days, Crude oil prices saw a steady decline from well above the $78.00 level. The price declined toward the $73.50 zone to move into a bearish zone.
Looking at the 4-hour chart of XTI/USD, the price settled below the $72.50 pivot level, the 200 simple moving average (green, 4-hour), and the 100 simple moving average (red, 4-hour).
There was also a drop below the $70.00 level before the price corrected losses. There was a minor recovery wave above the $70.50 level. However, upsides were capped above the $72.00 level. The price again declined and traded below $70.00.
Immediate support is near the $69.20 level. The next support is at $68.80, below which there is a risk of a sharp decline. In the stated case, the price could dive toward the $65.00 support. Any more losses might call for a test of the $62.00 support zone.
On the upside, the price is facing hurdles near the $71.20 level. There is also a connecting bearish trend line forming with resistance near $71.45 on the same chart.
The next major resistance is near the $72.00 zone, above which the price may perhaps accelerate higher. In the stated case, it could even visit the $75.00 resistance or the 200 simple moving average (green, 4-hour) in the coming days.
Looking at gold prices, there was a steady decline below the $2,020 and $2,000 support levels. It is consolidating losses near $1,980.
Economic Releases to Watch Today
- US Producer Price Index for Nov 2023 (MoM) – Forecast +0.1%, versus -0.5% previous.
- US Producer Price Index for Nov 2023 (YoY) – Forecast +1%, versus +1.3% previous.
- Fed Interest Rate Decision – Forecast 5.5%, versus 5.5% previous.
