Crude Oil Price Could Rise To $125
- Crude oil price is gaining pace above the $120 resistance.
- A major bullish trend line is forming with support near $118.80 on the 4-hours chart.
- Gold price is consolidating near the $1,850 pivot level.
- EUR/USD is still struggling to clear the key 1.0780 resistance zone.
Crude Oil Price Technical Analysis
After forming a base above $110, crude oil price started a fresh increase against the US Dollar. The price broke the $115.00 resistance to move into a positive zone.
Looking at the 4-hours chart of XTI/USD, the price was able to settle above the $118.00 resistance, the 100 simple moving average (red, 4-hours), and the 200 simple moving average (green, 4-hours).
The bulls pushed the price above the key $120.00 resistance zone. It even traded as high as $123.76 and is currently consolidating gains. If the bulls remain in action, the price could attempt a strong move above the $124.00 resistance.
The next major resistance is near $125.00, above which the price could accelerate higher towards the $128.00 level. If there is no upside break, the price could start a downside correction below $122.00. An initial support on the downside sits near the $121.05 level.
The next major support is near $120.00. There is also a major bullish trend line forming with support near $118.80 on the same chart.
The main support sits near $115.50 and the 100 simple moving average (red, 4-hours), below which there is a risk of a move towards the $112.50 level. Any more losses might call for a test of the $110 support.
Looking at the gold price, the price attempted an upside break above the $1,860 level but there was no real bullish momentum. However, there is a strong support near $1,845.
Economic Releases to Watch Today
- ECB Interest Rate Decision - Forecast 0%, versus 0% previous.
- US Initial Jobless Claims - Forecast 210K, versus 200K previous.