Key Highlights
- Crude oil prices settled below the $80.00 level with a bearish angle.
- A connecting bearish trend line is forming with resistance at $79.20 on the 4-hour chart.
- Gold prices corrected lower from the $2,450 resistance.
- EUR/USD also declined after it failed to clear 1.0885.
Crude Oil Price Technical Analysis
In the past few days, Crude oil prices saw a steady decline below the $80.50 zone. The price dipped below the $80.00 and $79.20 support levels.
Looking at the 4-hour chart of XTI/USD, the price even settled below the 200 simple moving average (green, 4-hour) and the 100 simple moving average (red, 4-hour). Finally, the price found support near the $76.70 zone.
A low was formed at $76.70 and the price is now attempting a recovery wave. On the upside, the price is facing hurdles near the $79.20 level. There is also a connecting bearish trend line forming with resistance at $79.20 on the same chart.
The next major resistance is near the $79.50 zone, above which the price may perhaps accelerate higher. In the stated case, it could even visit the $80.50 resistance.
If not, the price might dip lower and test the $76.70 support. The first major support on the downside is near the $76.20 level. The next major support is at $75.50 or, below which the price might test $74.50. Any more losses might send oil prices toward $72.00.
Looking at Gold, the price reacted to the downside after the bulls failed to clear the $2,450 resistance. The main support sits at $2,350.
Economic Releases to Watch Today
- Euro Zone Manufacturing PMI for May 2024 (Preliminary) – Forecast 46.2, versus 45.7 previous.
- Euro Zone Services PMI for May 2024 (Preliminary) – Forecast 53.5, versus 53.2 previous.
- US Manufacturing PMI for May 2024 (Preliminary) – Forecast 50.0, versus 50.0 previous.
- US Services PMI for May 2024 (Preliminary) – Forecast 51.3, versus 51.3 previous.
- US Initial Jobless Claims – Forecast 220K, versus 222K previous.
