Aayush Jindal
Key Highlights
- Crude oil prices found support near the $72.00 zone.
- A connecting bearish trend line is forming with resistance at $76.60 on the 4-hour chart.
- EUR/USD is consolidating near the 1.0900 pivot zone.
- Bitcoin could struggle to recover above $58,000 and $58,800.
Crude Oil Price Technical Analysis
After a close below the $80.00 level, Crude oil prices gained bearish momentum. It broke the $78.00 and $76.50 support levels to enter a bearish zone.
Looking at the 4-hour chart of XTI/USD, the price settled below the $76.50 level, the 200 simple moving average (green, 4-hour), and the 100 simple moving average (red, 4-hour). Finally, the bulls appeared near the $72.00 zone.
A low was formed at $72.04 and the price recently started a recovery wave. There was a minor increase above the $73.80 level. It cleared the 38.2% Fib retracement level of the downward move from the $79.40 swing high to the $72.04 low.
Immediate resistance on the upside is near the $75.75 level. The next major resistance is near the $76.50 zone. There is also a connecting bearish trend line forming with resistance at $76.60 on the same chart.
The trend line is close to the 61.8% Fib retracement level of the downward move from the $79.40 swing high to the $72.04 low, 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 $73.20 level. The next major support is $72.00. Any more losses might send oil prices toward $70.00 in the coming sessions.
Looking at Bitcoin, the price started a recovery wave above the $55,000 level but the bears might defend gains above the $58,000 zone.
Economic Releases to Watch Today
- US Initial Jobless Claims - Forecast 240K, versus 249K previous.
- US Wholesale Inventories for June 2024 (preliminary) – Forecast +0.2%, versus +0.2% previous.
