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Crude Oil Price Drops Below $80 And Might Extend Losses

Key Highlights

  • Crude oil price declined below the $81.50 and $80.00 support levels.
  • It traded below a major bullish trend line with support near $79.90 on the 4-hour chart.
  • Gold prices recovered above $1,915 but might struggle near $1,930.
  • EUR/USD is moving lower toward the 1.0800 support.


Crude Oil Price Technical Analysis

Crude oil price started a fresh decline after it settled below $82.00 against the US Dollar. The price traded below the $80.50 support to move into a bearish zone.

Looking at the 4-hour chart of XTI/USD, the price gained bearish momentum below the $80.00 support, the 100 simple moving average (red, 4-hour), and the 200 simple moving average (green, 4-hour).

It even tested the $77.80 zone. A low was formed near $77.89 before the price started a recovery wave. It retested the $79.00 resistance zone and the 23.6% Fib retracement level of the downward move from the $82.02 swing high to the $77.89 low.

The next major resistance is near the $80 level or the 50% Fib retracement level of the downward move from the $82.02 swing high to the $77.89 low, above which the price may perhaps accelerate higher. In the stated case, it could even visit the $82 resistance.

On the downside, initial support is near the $78.00 level. The next major support sits near the $77.80 level. Any more losses might call for a test of the $76.50 support zone in the coming days.

Looking at gold prices, there was a decent recovery wave above the $1,915 level but the bears might remain active near the $1,930 zone.

Economic Releases to Watch Today

  • Jackson Hole Symposium
  • US Initial Jobless Claims - Forecast 240K, versus 239K previous.
  • US Durable Goods Orders for July 2023 – Forecast -4.0% versus +4.6% previous.