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Crude Oil Price Surges To $80, Fed Decision Next

Key Highlights

  • Crude oil price started a fresh increase above the $75 resistance.
  • A key bullish trend line is forming with support near $77.70 on the 4-hour chart.
  • EUR/USD is consolidating near the 1.1050 pivot level.
  • The Fed interest rate decision is scheduled today (forecast 5.5%, versus 5.25% previous).


Crude Oil Price Technical Analysis

Crude oil price formed a base above the $72 level against the US Dollar. The price started a fresh increase and was able to clear a major hurdle at $73.50.

Looking at the 4-hour chart of XTI/USD, the price settled above the $75 level, the 100 simple moving average (red, 4-hour), and the 200 simple moving average (green, 4-hour).

The bulls even pushed the price toward the $80 resistance. A high is formed near $79.94 and the price is still showing bullish signs. On the downside, initial support is near the $78.50 level. The next major support sits near the $77.70 level.

There is also a key bullish trend line forming with support near $77.70 on the same chart. Any more losses might call for a test of the $75 support zone in the coming days.

On the upside, the first major resistance is near the $80 level. The next major resistance is near the $81.20 level, above which the price may perhaps accelerate higher. In the stated case, it could even revisit the $82.50 resistance.

Looking at EUR/USD, the pair started a downside correction below the 1.1150 level and is now consolidating near 1.1050.

Economic Releases to Watch Today

  • US New Home Sales for June 2023 (MoM) – Forecast 4.2% versus 12.2% previous.
  • Fed Interest Rate Decision - Forecast 5.5%, versus 5.25% previous.