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Crude Oil Price Resumes Uptrend, Dips Supported

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Aayush Jindal

Key Highlights

  • Crude oil price started a fresh increase above the $85.50 and $88.00 resistance levels.
  • A major bullish trend line is forming with support near $88.40 on the 4-hours chart.
  • Gold price failed to clear the $1,730 resistance and trimmed gains.
  • EUR/USD and GBP/USD seem to be consolidating losses.

Crude Oil Price Technical Analysis

Crude oil price started a fresh increase from the $76.80 zone against the US Dollar. The price gained pace for a move above the $80.00 resistance level.

Looking at the 4-hours chart of XTI/USD, there was a break above the $85.00 resistance zone. The price even settled above the $86.50 level, the 100 simple moving average (red, 4-hours), and the 200 simple moving average (green, 4-hours).

There was a clear move above the $88.00 and $90.00 levels. It traded as high as $93.70 and recently there was a minor downside correction.

The price dipped below the $90.00 level. There was a move below the 23.6% Fib retracement level of the upward move from the $76.77 swing low to $93.70 high. However, there are many supports on downside, starting with $88.40 and a connecting bullish trend line.

The next major support is near $85.00 zone. It is near the 50% Fib retracement level of the upward move from the $76.77 swing low to $93.70 high.

Any more losses might call for a test of the $82.50 zone. On the upside, the price might face sellers near the $91.50 zone. The next major resistance is near $93.80, above which the price could accelerate higher towards the $95.00 zone.

Looking at gold price, there was a fresh bearish wave after the price failed to clear the $1,730 resistance. It is now consolidating near the $1,675 zone.

Economic Releases to Watch Today

  • UK Industrial Production for August 2022 (MoM) - Forecast -0.2%, versus -0.3% previous.
  • UK Manufacturing Production for August 2022 (MoM) - Forecast 0%, versus +0.1% previous.
  • US Producer Price Index for Sep 2022 (MoM) – Forecast 0.2%%, versus -0.1% previous.
  • US Producer Price Index for Sep 2022 (YoY) – Forecast +8.4%, versus +8.7% previous.
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