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Crude Oil Price Trims Gains As Dollar Accelerates Higher

Key Highlights

  • Crude oil prices started a major decline from the $95.40 zone.
  • A major bearish trend line is forming with resistance near $87.20 on the 4-hour chart.
  • Gold prices are trading in a bearish zone below $1,840.
  • EUR/USD is struggling to recover above the 1.0550 resistance.


Crude Oil Price Technical Analysis

Crude oil price formed a medium-term top near $95.40 against the US Dollar. The price started a major decline below the $92.00 and $90.00 support levels.

Looking at the 4-hour chart of XTI/USD, the price accelerated lower below the $90 level and the 100 simple moving average (red, 4-hour). It even traded below the 200 simple moving average (green, 4-hour).

Besides, there is a major bearish trend line forming with resistance near $88.20 on the same chart. If the bears remain in action, there could be a drop toward the $84.00 support.

The next major support sits near the $83.20 zone. Any more losses might call for a test of the $82.50 support zone or a trend change and drop toward the $80.00 support zone.

On the upside, the price might face resistance near the $86.20 level. The next major resistance is near the $87.00 level or the trend line, above which the price may perhaps accelerate higher. In the stated case, it could even visit the $90 resistance.

Looking at gold prices, there was a major decline, and the price is now showing bearish signs below the $1,840 level.

Economic Releases to Watch Today

  • US Initial Jobless Claims - Forecast 210K, versus 204K previous.
  • US Goods and Services Trade Balance for August 2023 - Forecast $-62.3B, versus $-65.0B previous.