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Crude Oil Price Takes Hit, Decoding Hurdles To Fresh Increase

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Aayush Jindal

Key Highlights

  • Crude oil prices declined further below the $80.00 support.
  • A connecting bearish trend line is forming with resistance at $79.60 on the 4-hour chart.
  • Gold prices are consolidating below the $2,335 resistance.
  • Bitcoin prices are again moving lower below the $63,500 resistance zone.

Crude Oil Price Technical Analysis

In the past few days, Crude oil prices saw a steady decline from well above $81.80. The price dipped below the $80.50 and $80.00 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 $77.00 zone.

A low was formed at $77.02 and the price is now consolidating losses. On the upside, the price is facing hurdles near the $78.80 level. The next major resistance is near the $79.60.00 zone.

There is also a connecting bearish trend line forming with resistance at $79.60 on the same chart, above which the price may perhaps accelerate higher. In the stated case, it could even visit the $80.80 resistance.

If not, the price might dip lower and test the $77.00 support. The first major support on the downside is near the $76.50 level.

The next major support is at $75.00 or, below which the price might test $73.50. Any more losses might send oil prices toward $72.00.

Looking at Gold, the price remained stable above the $2,280 level but the bulls could struggle to surpass the $2,335 resistance region.

Economic Releases to Watch Today

  • BoE Interest Rate Decision - Forecast 5.25%, versus 5.25% previous.
  • US Initial Jobless Claims - Forecast 210K, versus 208K previous.
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