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Crude Oil Price Could Drop Unless It Clears This Hurdle

Key Highlights

  • Crude oil prices are struggling to climb above the $74.00 resistance.
  • A major bearish trend line is forming with resistance near $73.10 on the 4-hour chart.
  • Gold prices are also facing a major hurdle near $2,050.
  • EUR/USD could recover above the 1.1000 resistance zone.


Crude Oil Price Technical Analysis

In the past few days, Crude oil prices saw a few swing moves below the $75.00 resistance zone. The price declined below the $74.00 and $73.00 support levels.

Looking at the 4-hour chart of XTI/USD, the price settled below the $73.20 zone, the 200 simple moving average (green, 4-hour), and the 100 simple moving average (red, 4-hour).

However, the bulls were active near the $70.00 zone. The recent low was formed near $70.07 before the price started a fresh increase. There was a move above the $71.50 resistance. On the upside, the price is facing hurdles near the $73.00 level.

There is also a major bearish trend line forming with resistance near $73.10 on the same chart. The next major resistance is near the $74.00 zone, above which the price may perhaps accelerate higher. In the stated case, it could even visit the $76.50 resistance.

Immediate support is near the $70.50 level. The next support is at $70.00, below which there is a risk of a sharp decline. In the stated case, the price could dive toward the $68.00 support. Any more losses might call for a test of the $66.20 support zone.

Looking at gold prices, the bears seem to be active and they might continue to protect the $2,050 resistance zone.

Economic Releases to Watch Today

  • US Wholesale Inventories for Nov 2023 – Forecast -0.2%, versus -0.2% previous.