Aayush Jindal
Key Highlights
- Crude oil prices gained bearish momentum and declined below $72.00.
- A major bearish trend line is forming with resistance at $76.00 on the 4-hour chart.
- Gold could correct lower if it stays below $2,500 for a long time.
- The US ADP employment could change by 145K in August 2024.
Crude Oil Price Technical Analysis
Crude oil prices failed to gain pace above the $75.00 and $76.00 levels. As a result, there was a fresh decline below the $73.50 support.
Looking at the 4-hour chart of XTI/USD, the price declined below the $72.50 support, the 100 simple moving average (red, 4-hour), and the 200 simple moving average (green, 4-hour). It even spiked below the $70.00 support.
The first major support sits near the $68.00 level. A daily close below $68.00 could open the doors for a larger decline. The next major support is $62.00. Any more losses might send oil prices toward $60.00 in the coming sessions.
If there is another increase, the price might face resistance near the $71.50 level. The next major resistance is near the $72.65 zone, above which the price may perhaps accelerate higher.
In the stated case, it could even visit the $75.00 resistance. There is also a major bearish trend line forming with resistance at $76.00 on the same chart.
Looking at Gold, the price is consolidating below the $2,500 pivot level and there are chances of a downside correction toward $2,450.
Economic Releases to Watch Today
- US Initial Jobless Claims - Forecast 230K, versus 231K previous.
- US ISM Services Index for August 2024 – Forecast 51.1, versus 51.4 previous.
- US ADP Employment Change for August 2024 - Forecast 145K, versus 122K previous.
