Crude Oil Price Keeps Rising, EUR/USD Extends Gains

Key Highlights

  • Crude oil price extended its rise above the $46.00 and $47.50 resistance levels.
  • A crucial bullish trend line is forming with support near $46.75 on the 4-hours chart of XTI/USD.
  • EUR/USD surpassed the 1.2170 resistance, GBP/USD also surged above 1.3500.
  • The Euro Zone CPI could decline 0.3% in Nov 2020 (YoY).

 

Crude Oil Price Technical Analysis

After a sharp downside correction, crude oil price found support near $45.70 against the US Dollar. The price started a steady increase and broke many hurdles near $46.50 and $46.80.

Looking at the 4-hours chart of XTI/USD, the price gained pace above the $47.00 and $47.20 resistance levels. A new multi-month high is formed near $48.40 and it seems like the price might continue to rise.

The next major resistance on the upside is near the $48.80 level. The main hurdle for further upsides is still near the $50.00 level. If there is a downside correction, the price might find support near $47.00.

There is also a crucial bullish trend line forming with support near $46.75 on the same chart. If there is a downside break below the trend line support, the price could correct lower towards the $45.70 and $45.20 support levels.

Fundamentally, the US Manufacturing Purchasing Managers Index (PMI) for Dec 2020 (Prelim) was released yesterday by the Markit Economics. The market was looking for a decline from 56.7 to 55.7.

The actual result was better than the market forecast, as the US Manufacturing PMI came at 56.5. Besides, the US Services PMI declined from 58.4 to 55.3.

The report added:

U.S. private sector businesses signalled a strong, albeit softer expansion in output during December. The loss of growth momentum follows rising virus case numbers and re-imposed restrictions in many states, as the post-election uptick and vaccine confidence waned.

Looking at EUR/USD, the pair surpassed 1.2170 and 1.2200. GBP/USD rallied and cleared many hurdles near 1.3400 and 1.3500.

Economic Releases to Watch Today

  • Euro Zone CPI Nov 2020 (YoY) - Forecast -0.3%, versus -0.3% previous.
  • Euro Zone CPI Nov 2020 (MoM) - Forecast -0.3%, versus +0.2% previous.
  • BoE Interest Rate Decision - Forecast 0.1%, versus 0.1% previous.
  • US Initial Jobless Claims - Forecast 800K, versus 853K previous.