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Crude Oil Price Starts Recovery But Faces Hurdle

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Aayush Jindal

Key Highlights

  • Crude oil prices started a recovery wave above $70.
  • It broke a major bearish trend line with resistance near $70.80 on the 4-hour chart.
  • EUR/USD extended its decline and spiked below 1.0840.
  • Gold price is consolidating losses near the $1,975 support.

Crude Oil Price Technical Analysis

Crude oil prices remained well-bid above the $65 level against the US Dollar. The price started a recovery wave above the $68 and $68.50 resistance levels.

Looking at the 4-hour chart of XTI/USD, the price was able to settle above the $70 level. Besides, there was a break above a major bearish trend line with resistance near $70.80.

The price is now testing the $73 resistance and the 100 simple moving average (red, 4-hour). The first major resistance is near the $73.65 level which is near the 50% Fib retracement level of the downward move from the $83.48 swing high to the $63.83 low.

The next key resistance is near $76 and the 200 simple moving average (green, 4-hour), above which the price may perhaps accelerate higher.

On the downside, initial support is near the $70.80 level. The next major support sits near the $70.00 level. Any more losses might call for a test of the $68.00 support zone in the coming sessions.

Looking at EUR/USD, the pair is moving lower and there is now a risk of a downside break below the 1.0800 support zone.

Economic Releases to Watch Today

  • US Initial Jobless Claims - Forecast 254K, versus 264K previous.
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