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Crude Oil Price Faces Major Resistance, Dollar Moves Lower

Aayush Jindal

Aayush Jindal

Market Analysis

Key Highlights

  • Crude oil price started a fresh increase from the $62.00 support zone.
  • There was a break above a major bearish trend line at $65.85 on the 4-hours chart of XTI/USD.
  • EUR/USD is consolidating near 1.1800, but GBP/USD was rejected near 1.3800.
  • The US ISM Manufacturing Index could decline slightly from 59.5 to 58.6 in August 2021.

 

Crude Oil Price Technical Analysis

After trading as low as $62.02, crude oil price started a fresh increase against the US Dollar. The price broke the $65.00 resistance zone to move into a positive zone.

Looking at the 4-hours chart of XTI/USD, the price even climbed above the $65.50 resistance zone. There was a clear break above a major bearish trend line with resistance at $65.85.

The price climbed above the $68.00 level and the 100 simple moving average (4-hours, red). However, it is now facing a strong resistance near the $69.75 level and the 200 simple moving average (4-hours, green).

A high is formed near $69.73 and the price is now consolidating gains. On the upside, an initial resistance is near the $67.75 level and the 200 simple moving average (4-hours, green). The first major resistance is near the $70.00 level, above which the price could rise towards $73.50.

An immediate support is near the $68.00 level. The first major support is near $67.50 and the 100 simple moving average (4-hours, red). Any more losses could open the doors for a move towards $65.80 support zone.

Looking at EUR/USD, the pair climbed above the 1.1800 resistance, but it is struggling to continue higher. Besides, GBP/USD failed to clear the 1.3800 resistance.

Economic Releases to Watch Today

  • Germany’s Manufacturing PMI for August 2021 - Forecast 62.7, versus 62.7 previous.
  • Euro Zone Manufacturing PMI for August 2021 – Forecast 61.5, versus 61.5 previous.
  • UK Manufacturing PMI for August 2021 – Forecast 60.1, versus 60.1 previous.
  • US Manufacturing PMI for August 2021 – Forecast 61.2, versus 61.2 previous.
  • US ISM Manufacturing Index for August 2021 – Forecast 58.6, versus 59.5 previous.