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Crude Oil Price Faces Key Resistance Near $106

Aayush Jindal

Aayush Jindal

Key Highlights

  • Crude oil price found support near $93.25 and started a fresh increase.
  • It broke a major bearish trend line with resistance near $99.20 on the 4-hours chart.
  • Gold price is facing resistance near $1,980 and $1,985.
  • EUR/USD retested the 1.0800 support zone, and GBP/USD recovered over 100 pips.

 

Crude Oil Price Technical Analysis

After a major decline, crude oil price found support near the $93.25 level against the US Dollar. The price started a fresh increase above the $98 resistance zone.

Looking at the 4-hours chart of XTI/USD, the price even climbed above the 23.6% Fib retracement level of the downward move from the $118.34 swing high to $93.25 low. Besides, there was a break above a major bearish trend line with resistance near $99.20.

The price is now trading above the $102 level. However, it is facing a strong resistance near the $105-106 zone, the 100 simple moving average (red, 4-hours), and the 200 simple moving average (green, 4-hours).

The 50% Fib retracement level of the downward move from the $118.34 swing high to $93.25 low is also near the $106 resistance zone.

A clear move above the $106 resistance zone could open the doors for a steady move towards the $112 and $113 resistance levels. The next major resistance might be near the $118.00 level.

If there is no upside break, the price could start another decline below $100.00. The next major support is near $96, below which there is a risk of a move towards the $93.20 level. Any more losses might call for a test of the $88.00 support.

Looking at the gold price, the bulls pushed the price above the $1,965 resistance zone, but the price is now facing resistance near $1,980.

Economic Releases to Watch Today

  • ECB Interest Rate Decision – Forecast 0%, versus 0% previous.
  • US Initial Jobless Claims - Forecast 171K, versus 166K previous.