Key Highlights
- WTI Crude Oil prices started a recovery wave from the $70.80 support.
- It cleared a key bearish trend line with resistance at $72.20 on the 4-hour chart.
- Gold prices started a downside correction from the record high of $2,942.
- EUR/USD is attempting to start a fresh increase above the 1.0380 resistance level.
WTI Crude Oil Price Technical Analysis
WTI Crude Oil price started a major decline below $75.00. The price declined below the $73.00 and $72.00 levels before the bulls appeared.
Looking at the 4-hour chart of XTI/USD, the price settled below the 100 simple moving average (red, 4-hour) and the 200 simple moving average (green, 4-hour). A low was formed at $70.87 and the price is now correcting some losses.
There was a move above the $71.50 and $72.00 levels. The price cleared a key bearish trend line with resistance at $72.20 on the same chart. It even spiked above the 23.6% Fib retracement level of the downward move from the $80.76 swing high to the $70.87 low.
On the upside, the price is facing hurdles near the $73.50 level. The main hurdle is now near the $74.00 zone and the 100 simple moving average (red, 4-hour), above which the price may perhaps accelerate higher.
In the stated case, it could even visit the $75.80 resistance. Any more gains might call for a test of the $78.00 resistance zone in the near term.
On the downside, the first major support sits near the $72.20 zone. A daily close below $72.20 could open the doors for a larger decline. The next major support is $70.80. Any more losses might send oil prices toward $68.00 in the coming days.
Looking at Gold, there was a strong increase above the $2,900 level and the price is now correcting some gains.
Economic Releases to Watch Today
- UK GDP for Q4 2024 (Preliminary) (QoQ) – Forecast -0.1%, versus 0% previous.
- US Initial Jobless Claims – Forecast 215K, versus 219K previous.
