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Crude Oil Price Breaks Key Resistance, Dollar Under Pressure

Aayush Jindal

Aayush Jindal

Key Highlights

  • Crude oil price formed a base above $57.00 and started a fresh increase.
  • It broke a major contracting triangle with resistance near $59.70 on the 4-hours chart of XTI/USD.
  • Gold price is still trading below the key $1,760 resistance zone.
  • EUR/USD gained pace above 1.1920, GBP/USD is consolidating above 1.3670.

 

Crude Oil Price Technical Analysis

After trading as low as $57.20, crude oil price started a fresh increase against the US Dollar. The price broke the $58.50 and $59.50 resistance levels to move into a positive zone.

Looking at the 4-hours chart of XTI/USD, the price gained pace after it broke the $60.00 level and the 100 simple moving average (red, 4-hours). There was also a break above a major contracting triangle with resistance near $59.70.

The price traded above the 50% Fib retracement level of the downward move from the $67.94 high to $57.20 low. It is now trading nicely above the $62.00 level and the 200 simple moving average (green, 4-hours).

The first major resistance is near the $63.50 level. It is near the 50% Fib retracement level of the downward move from the $67.94 high to $57.20 low. A clear break above the $63.50 level could open the doors for a steady increase towards the $64.80 and $65.50.

If there is no upside break, the price could start another decline below $61.50. The main support is now near $59.80 and the 100 SMA, below which the price might revisit the $57.20 low.

Looking at EUR/USD, there were additional gains above the 1.1920 and 1.1950 levels. Besides, GBP/USD is still holding the key 1.3670 double bottom support zone.

Economic Releases to Watch Today

  • German Consumer Price Index for March 2021 (YoY) – Forecast +1.7%, versus +1.7% previous.
  • German Consumer Price Index for March 2021 (MoM) – Forecast +0.5%, versus +0.5% previous.
  • US Initial Jobless Claims - Forecast 700K, versus 744K previous.
  • US Retail Sales for March 2021 (MoM) – Forecast +5.9%, versus -3.0% previous.
  • US Industrial Production for March 2021 (MoM) – Forecast +2.8%, versus -2.2% previous.