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Aayush Jindal

Key Highlights

  • Crude oil price rallied above the $90 and $92.50 resistance levels.
  • A key bullish trend line is forming with support near $88.00 on the 4-hour chart.
  • Gold prices failed to clear the $1,950 resistance.
  • EUR/USD could recover if it clears the 1.0720 resistance.

Crude Oil Price Technical Analysis

Crude oil price started a fresh increase after a close above $88 against the US Dollar. The price rallied above the $90 and $90.50 resistance levels.

Looking at the 4-hour chart of XTI/USD, the price settled well above the $90 level, the 100 simple moving average (red, 4-hour) and the 200 simple moving average (green, 4-hour).

Finally, it traded to a new multi-week high at $92.92. Recently, there was a minor downside correction below the $91.20 level. However, the bulls seem to be active above the $89.40 level. The 23.6% Fib retracement level of the upward move from the $77.85 swing low to the $92.92 high is also near $89.40.

The next major support sits near the $88.00 zone. There is also a key bullish trend line forming with support near $88.00 on the same chart.

Any more losses might call for a test of the $87.15 support zone or a trend change and drop toward the $82.00 support zone.

On the upside, the price might face resistance near the $92.50 level. The next major resistance is near the $93.20 level, above which the price may perhaps accelerate higher. In the stated case, it could even visit the $95 resistance.

Looking at gold prices, there was a decent increase and the price was able to surpass the $1,935 resistance zone.

Economic Releases to Watch Today

  • BoE Interest Rate Decision - Forecast 5.5%, versus 5.25% previous.
  • US Initial Jobless Claims - Forecast 225K, versus 220K previous.