Crude Oil Price Turns Red Below $70
- Crude oil price started a downside correction below $75.00.
- A key bearish trend line is forming with resistance near $70.20 on the 4-hours chart of XTI/USD.
- EUR/USD is facing resistance near 1.1400, and GBP/USD could recover if it breaks 1.3400.
- The US ISM Manufacturing Index increased from 60.8 to 61.1 in Nov 2021.
Crude Oil Price Technical Analysis
After facing resistance near $80.00, crude oil price starting a fresh decline against the US Dollar. The price traded below the $75.00 support to enter a short-term bearish zone.
Looking at the 4-hours chart of XTI/USD, the price traded below the $72.00 support, the 100 simple moving average (4-hours, red) and the 200 simple moving average (4-hours, green).
The bears pushed the price below the $70.00 support zone. A low was formed near $65.00 before there was a recovery wave. The price recovered above the $68.00 level. However, it is facing resistance near the $69.50 and $70.00 levels.
There is also a key bearish trend line forming with resistance near $70.20 on the same chart. A close above $70.00 and $70.20 could start a steady increase towards the $73.50 level.
An immediate support on the downside is near the $67.00 level. The first major support is near $66.50. Any more losses could open the doors for a move towards the $65.00 support.
Fundamentally, the US ISM Manufacturing Index was released yesterday by the Institute for Supply Management (ISM). The market was looking for a rise from 60.8 to 61.0 in Nov 2021.
However, the actual result was positive, as the US ISM Manufacturing PMI increased from 60.8 to 61.1 in Nov 2021. Besides, the US ISM Manufacturing New Orders Index increased from 59.8 to 61.5.
Looking at EUR/USD, the pair recovered above 1.1320, but it is facing resistance near 1.1400. Besides, GBP/USD could rally if it clears 1.3400.
Economic Releases to Watch Today
- US Initial Jobless Claims - Forecast 240K, versus 199K previous.