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Crude Oil Price Extends Rally Above $75, US CPI Eases To 3%

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Aayush Jindal

Key Highlights

  • Crude oil price started a fresh increase above the $72.50 resistance.
  • A key bullish trend line is forming with support near $73.90 on the 4-hour chart.
  • EUR/USD surged above the 1.1050 and 1.1080 resistance levels.
  • The US CPI declined from 4% to 3% in June 2023 (YoY).

Crude Oil Price Technical Analysis

Crude oil price remained strong above the $70 level against the US Dollar. The price started a fresh increase and was able to clear a major hurdle at $72.50.

Looking at the 4-hour chart of XTI/USD, the price settled above the $73.50 level, the 100 simple moving average (red, 4-hour), and the 200 simple moving average (green, 4-hour).

The bulls even pumped the price above the $75 resistance. It tested the $76 level and started a consolidation. On the downside, initial support is near the $74.75 level. The next major support sits near the $74.00 level.

There is also a key bullish trend line forming with support near $73.90 on the same chart. Any more losses might call for a test of the $72.50 support zone in the coming days.

On the upside, the first major resistance is near the $76.50 level. The next major resistance is near the $78.00 level, above which the price may perhaps accelerate higher. In the stated case, it could even revisit the $80 resistance.

Looking at EUR/USD, the pair gained bullish momentum after there was a close above the 1.1010 level. It surged above the 1.1050 resistance and then 1.1100.

Economic Releases to Watch Today

  • US Initial Jobless Claims - Forecast 250K, versus 248K previous.
  • US Producer Price Index for June 2023 (MoM) – Forecast +0.2%, versus -0.3% previous.
  • US Producer Price Index for June 2023 (YoY) – Forecast +0.4%, versus +1.1% previous.
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