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Crude Oil Price Faces Key Resistance Near $85

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Aayush Jindal

Key Highlights

  • Crude oil price is struggling to settle above $84.00.
  • It broke a major bullish trend line with support near $83.15 on the 4-hours chart of XTI/USD.
  • EUR/USD is still trading well below the 1.1650 resistance zone.
  • GBP/USD is slowly moving lower below 1.3720.

Crude Oil Price Technical Analysis

Crude oil price started a steady increase above $80.00 against the US Dollar. The price surpassed the $82.00 resistance to move into a positive zone.

Looking at the 4-hours chart of XTI/USD, the price even settled above $82.50, the 100 simple moving average (4-hours, red) and the 200 simple moving average (4-hours, green).

The price gained pace above the $84.00 level, but it struggled to clear the $85.00 resistance. A high was formed near $85.16 before there was a downside correction. There was a break below the $84.50 support zone.

The price traded the 50% Fib retracement level of the upward move from the $81.74 swing low to $85.16 high. There was also a break below a major bullish trend line with support near $83.15 on the same chart.

An immediate support on the downside is near the $82.50 level. The first major support is near $82.20. Any more losses could open the doors for a move towards the $81.50 support.

On the upside, an initial resistance is near the $83.50 level. The next major resistance is near the $84.00 level, above which the price could rise towards the $85.00 level.

Looking at EUR/USD, the pair failed to recover above 1.1650 and it remains at a risk of more downsides. Besides, GBP/USD could extend losses below 1.3600.

Economic Releases to Watch Today

  • US Services PMI for Oct 2021 – Forecast 58.2, versus 58.2 previous
  • US ISM Services Index for Oct 2021 – Forecast 62.0, versus 61.9 previous
  • US ADP Employment Change for Oct 2021 - Forecast 400K, versus 568K previous.
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