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Crude Oil Price Trims Gains, Gold Faces Key Hurdle

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Aayush Jindal

Key Highlights

  • Crude oil price started a fresh decline from the $81 resistance.
  • It broke a key bullish trend line with support near $79.70 on the 4-hours chart.
  • Gold price is still struggling to clear the $1,825 resistance zone.
  • EUR/USD might attempt a fresh increase towards the 1.0750 level.

Crude Oil Price Technical Analysis

Crude oil price started a fresh decline from the $81 resistance against the US Dollar. The price formed a high near $81.09 before it started a fresh decline.

Looking at the 4-hours chart of XTI/USD, there was a break above below a key bullish trend line with support near $79.70. It opened the doors for a move below the $78.80 support zone and the 100 simple moving average (red, 4-hours).

The price even spiked below the 50% Fib retracement level of the upward move from the $74.39 swing low to $81.09 high. Finally, the price tested the 200 simple moving average (green, 4-hours).

An immediate support is now forming near the $77.00 zone and the 61.8% Fib retracement level of the upward move from the $74.39 swing low to $81.09 high.

The next major support sits near the $76.00 level. Any more losses might call for a test of the $74.500 support zone in the coming days.

On the upside, the price might face sellers near the $78.20 zone. The next major resistance is near $78.50 zone and the 100 simple moving average (red, 4-hours), above which the price could test $80 resistance. A clear move above the $80 resistance could open the doors for another steady increase towards $81 or even $82.

Looking at gold price, there was a failed attempt to clear the $1,825 resistance and the price corrected lower.

Economic Releases to Watch Today

  • US Initial Jobless Claims - Forecast 213K, versus 216K previous.
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