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Crude Oil Price Could Regain Momentum Above $103

Aayush Jindal

Aayush Jindal

Market Analysis

Key Highlights

  • Crude oil price started a fresh increase above the $100 barrier.
  • A major bearish trend line is forming with resistance near $103 on the 4-hours chart.
  • EUR/USD climbed above 1.0200 before it faced sellers.
  • GBP/USD is struggling to clear the 1.2040 resistance zone.

 

Crude Oil Price Technical Analysis

After a downside break below $100, crude oil price extended losses against the US Dollar. The price tested the $90 zone before it started a fresh increase.

Looking at the 4-hours chart of XTI/USD, there was a move above the $95 and $98 resistance levels. The price even broke the $100 resistance zone, but it stayed below the 100 simple moving average (red, 4-hours) and the 200 simple moving average (green, 4-hours).

It is also facing resistance near the 50% Fib retracement level of the downward move from the $115.21 swing high to $90.74 low.

There is also a major bearish trend line forming with resistance near $103 on the same chart. A clear move above the trend line resistance could set the pace for a larger increase towards $105. The next major resistance is near $108, above which the price could accelerate higher towards the $110 zone.

On the downside, an initial support is near the $98.50 level. The next major support is near $96.50. The main support sits near $95, below which there is a risk of a move towards the $92.00 level. Any more losses might call for a test of the $90 zone.

Looking at the EUR/USD pair, the pair climbed above the 1.0200 resistance but the bears appeared near the 1.0280 zone.

Economic Releases to Watch Today

  • ECB Interest Rate Decision - Forecast 0.25%, versus 0 % previous.
  • US Initial Jobless Claims - Forecast 240K, versus 244K previous.