Crude Oil Price Extends Rally Above $70, Dollar Consolidates
- Crude oil price gained bullish momentum above $66.50 and $68.50.
- A key bullish trend line is forming with support near $69.10 on the 4-hours chart of XTI/USD.
- EUR/USD remains strong above the 1.2100 support zone.
- GBP/USD is still struggling to gain pace above 1.4200 and 1.4220.
Crude Oil Price Technical Analysis
After a clear break above the $65.00 resistance, crude oil price climbed higher steadily against the US Dollar. The price broke the $66.50 and $68.00 resistance levels to move further into a positive zone.
Looking at the 4-hours chart of XTI/USD, the price settled nicely above the $68.00 zone, the 100 simple moving average (red, 4-hours), and the 200 simple moving average (green, 4-hours).
Finally, there was a break above the $70.00 level. The price traded to a new multi-month high near $70.40 and it is now consolidating gains. An initial support on the downside is near the $70.00 level.
The first major support is near $69.20. The 23.6% Fib retracement level of the upward move from the $65.25 low to $70.40 high is also near $69.20. There is also a key bullish trend line forming with support near $69.10 on the same chart.
If there is a downside break below $69.00, the price could decline towards the $67.50 support. The next major support is near the $66.40 level.
On the upside, the first major resistance is near the $70.50 level. A clear break above the $70.50 level could open the doors for a break above the $72.00 level.
Looking at EUR/USD, the pair is stable above the 1.2100 and 1.2120 support levels. Besides, GBP/USD needs to gain pace above 1.4220 for a strong increase.
Economic Releases to Watch Today
- US Wholesale Inventories for April 2021 (preliminary) – Forecast +0.8%, versus +0.8% previous.
- BoC Interest Rate Decision - Forecast 0.25%, versus 0.25% previous.