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Crude Oil Price Drops To 6-Month Low, Upsides Limited

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Aayush Jindal

Key Highlights

  • Crude oil price started a fresh decline from the $95.50 resistance.
  • It is now facing hurdles near $89.50 and $90.00 on the 4-hours chart.
  • Gold price corrected lower and traded below the $1,780 support.
  • EUR/USD and GBP/USD remain at a risk of more losses.

Crude Oil Price Technical Analysis

After a minor recovery wave, crude oil price faced sellers near $95.50 against the US Dollar. The price started a fresh decline below the $92.50 support zone.

Looking at the 4-hours chart of XTI/USD, there was a break below the $92.00 and $90.00 levels. The price even settled below the $90 level, the 100 simple moving average (red, 4-hours) and the 200 simple moving average (green, 4-hours).

During the decline, the price traded below a couple of connecting trend lines at $89.50 and $88.10 on the same chart. The price traded as low as $85.81 and is currently consolidating losses.

On the upside, the price is facing resistance near the $89.50 and $90.00 levels. A clear move above the $90.00 resistance could set the pace for a larger increase towards $92.50. The next major resistance is near $95.50, above which the price could accelerate higher towards the $100 zone.

Conversely, the price might resume its decline below the $86.00 level. The next major support is near $85.50. The main support sits near $83.20, below which there is a risk of a move towards the $80.00 level. Any more losses might call for a test of the $78 zone.

Looking at the EUR/USD pair, the pair struggled to correct higher and there is a clear risk of a move below the 1.0100 support zone.

Economic Releases to Watch Today

  • US Initial Jobless Claims - Forecast 265K, versus 262K previous.
  • US Existing Home Sales for July 2022 (MoM) - Forecast -5.2%, versus -5.4% previous.
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