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Crude Oil Price Dips Below Support, Turns Red

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Aayush Jindal

Key Highlights

  • Crude oil price declined below the $100 support.
  • A major bearish trend line is forming with resistance near $108 on the 4-hours chart.
  • Gold price is showing bearish signs below the $1,780 level.
  • The US ADP employment could change 200K in June 2022.

Crude Oil Price Technical Analysis

After struggling to clear the $112 resistance zone, crude oil price started a fresh decline against the US Dollar. The price broke the $105 support to enter a bearish zone.

Looking at the 4-hours chart of XTI/USD, there was a break below $102 support zone. The price even settled below the $100 support, the 100 simple moving average (red, 4-hours), and the 200 simple moving average (green, 4-hours).

It seems like the bears are in control below the $105 level. There is also a major bearish trend line forming with resistance near $108 on the same chart.

If the bears gain strength, there is a risk of a move towards the $94.50 support. The next major support is near $92. The main support sits near $88.50, below which there is a risk of a move towards the $82.00 level. Any more losses might call for a test of the $80.00 zone.

On the upside, the previous support at $103.20 might act as a resistance. The next major resistance is near $14.20, above which the price could accelerate higher towards the trend line resistance.

Looking at the gold price, the price extended decline and remains at a risk of more losses below the $1,750 support zone.

Economic Releases to Watch Today

  • US ADP Employment Change for June 2022 - Forecast 200K, versus 128K previous.
  • US Initial Jobless Claims - Forecast 230K, versus 231K previous.
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