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Crude Oil Price Approaches $85, Can Bears Save The Day?

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Aayush Jindal

Key Highlights

  • Crude oil price started a fresh increase above the $80 resistance.
  • A key bullish trend line is forming with support near $82.25 on the 4-hour chart.
  • Gold prices are moving lower and trading well below $1,925.
  • The US Consumer Price Index could increase 3.3% in July 2023 (YoY), up from 3.0%.

Crude Oil Price Technical Analysis

Crude oil price formed a base above the $77.50 level against the US Dollar. The price started a fresh increase and was able to clear a major hurdle at $80.

Looking at the 4-hour chart of XTI/USD, the price settled above the $80 level, the 100 simple moving average (red, 4-hour), and the 200 simple moving average (green, 4-hour).

The bulls even pushed the price toward the $85 resistance. A high is formed near $84.65 and the price is still showing bullish signs. On the downside, initial support is near the $83.10 level. The next major support sits near the $82.30 level.

There is also a key bullish trend line forming with support near $82.25 on the same chart. Any more losses might call for a test of the $80 support zone in the coming days.

On the upside, the first major resistance is near the $84.65 level. The next major resistance is near the $85 level, above which the price may perhaps accelerate higher. In the stated case, it could even visit the $88 resistance.

Looking at gold prices, there was a bearish reaction and the price could now move lower toward the $1,900 support zone.

Economic Releases to Watch Today

  • US Consumer Price Index for July 2023 (MoM) – Forecast +0.2%, versus +0.2% previous.
  • US Consumer Price Index for July 2023 (YoY) – Forecast +3.3%, versus +3.0% previous.
  • US Initial Jobless Claims - Forecast 230K, versus 227K previous.
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