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Crude Oil Price Nosedives, Fed Hiked Rates Again

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Aayush Jindal

Key Highlights

  • Crude oil prices started a fresh decline below the $75 support.
  • A major bearish trend line is forming with resistance near $74.00 on the 4-hour chart.
  • EUR/USD and GBP/USD remained in a positive zone.
  • The Fed increased interest rates from 5% to 5.25%.

Crude Oil Price Technical Analysis

Crude oil prices struggled to start a fresh increase above $78 against the US Dollar. The price remained in a bearish zone and gained momentum below the $75 support.

Looking at the 4-hour chart of XTI/USD, the price settled below the $72.50 support zone, the 100 simple moving average (red, 4-hour), and the 200 simple moving average (green, 4-hour).

The decline was such that the price even dropped below the $70 support. The current price action suggests chances of more losses below the $68 support. The next major support sits near the $66.20 level.

Any more losses might call for a test of the $65.00 support zone in the coming sessions. On the upside, the price is facing resistance near the $70.50 level.

The next major resistance is near the $72.00 zone. Besides, there is a major bearish trend line forming with resistance near $74.00 on the same chart. A clear move above the trend line resistance might send the price toward the $77 resistance.

Looking at EUR/USD, the pair remained in a positive zone above the 1.0975 support and might aim for more upsides toward 1.1120.

Economic Releases to Watch Today

  • US Goods and Services Trade Balance for March 2023 - Forecast $-63.3B, versus $-70.5B previous.
  • US Initial Jobless Claims - Forecast 240K, versus 230K previous.
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