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Crude Oil Prices At Risk of More Downsides Below $72

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Aayush Jindal

Key Highlights

  • Crude oil prices struggled to clear the $80.00 resistance zone.
  • It traded below a key bullish trend line with support at $77.00 on the 4-hour chart.
  • EUR/USD rallied and surpassed the 1.1120 resistance.
  • Gold seems to be consolidating near the $2,500 pivot zone.

Crude Oil Price Technical Analysis

Crude oil prices attempted a fresh increase above the $78.00 and $78.80 levels. It even spiked above $80.00 before the bears appeared and pushed prices lower.

Looking at the 4-hour chart of XTI/USD, the price started a fresh decline below the $80.00 level. It traded below the $78.80 and $78.00 levels. It even traded below a key bullish trend line with support at $77.00.

The price is now well below the 100 simple moving average (red, 4-hour) and the 200 simple moving average (green, 4-hour). It tested the $72.00 zone. A low was formed at $72.47 and the price is now consolidating losses.

If there is another increase, the price might face resistance near the $74.20 level. The next major resistance is near the $75.50 zone, above which the price may perhaps accelerate higher. In the stated case, it could even visit the $78.00 resistance.

If not, the price might start another decline. The first major support on the downside is near the $72.20 level. The next major support is $70.00. Any more losses might send oil prices toward $66.50 in the coming sessions.

Looking at Gold, the price is still in a bullish zone and might aim for more gains above the $2,520 resistance zone in the near term.

Economic Releases to Watch Today

  • US Initial Jobless Claims - Forecast 230K, versus 227K previous.
  • Jackson Hole Symposium.
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