Crude Oil Price Recovery Could Fade Near $85: Here’s Why
- Crude oil price tested the $76.50 before it started a recovery wave.
- A major bearish trend line is forming with resistance at $82.20 on the 4-hours chart.
- Gold price might attempt a recovery wave above the $1,665 resistance.
- The US GDP could contract 0.6% in Q2 2022.
Crude Oil Price Technical Analysis
Crude oil price saw a steady decline below the $88.00 support against the US Dollar. The price traded below the $82 and $80 support levels.
Looking at the 4-hours chart of XTI/USD, there was a break below the $78 level. The price settled well below the 100 simple moving average (red, 4-hours), and the 200 simple moving average (green, 4-hours).
The price traded as low as $76.52 and recently started an upside correction. There was a move above the $79.50 level. It broke the 23.6% Fib retracement level of the downward move from the $90.17 swing high to $76.52 low.
On the upside, the price might face sellers near the $82.20 zone. There is also a major bearish trend line forming with resistance at $82.20 on the same chart.
The next major resistance is near $83.50 or the 50% Fib retracement level of the downward move from the $90.17 swing high to $76.52 low, above which the price could accelerate higher towards the $85.00 zone.
On the downside, an initial support is near the $78.40 level. The next major support is near $77.00. The main support sits near $76.50, below which there is a risk of a move towards the $75.00 level. Any more losses might call for a test of the $72.50 zone.
Looking at gold price, a minor recovery wave is underway, but the price must clear the $1,665 resistance to continue higher.
Economic Releases to Watch Today
- US Initial Jobless Claims - Forecast 215K, versus 213K previous.
- US Gross Domestic Product Q2 2022 – Forecast -0.6% versus previous -0.6%.