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Oil Prices Recovers Sharply, Fed Holds Rates Steady

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Aayush Jindal

Key Highlights

  • Crude oil prices started a strong recovery wave above the $75.00 resistance zone.
  • There was a break above a key bearish trend line with resistance at $74.90 on the 4-hour chart.
  • Bitcoin surged above $67,500 before trimming most gains.
  • GBP/USD rallied to a new multi-week high and traded above 1.2800.

Crude Oil Price Technical Analysis

In the past few days, Crude oil prices saw a decent recovery wave from the $72.65 zone. The price climbed above the $73.50 and $74.50 levels to move into a positive zone.

Looking at the 4-hour chart of XTI/USD, the price even cleared the 200 simple moving average (green, 4-hour) and the 100 simple moving average (red, 4-hour). There was a break above a key bearish trend line with resistance at $74.90.

The price surpassed the 76.4% Fib retracement level of the downward move from the $80.86 swing high to the $72.64 low. On the upside, the price is facing hurdles near the $80 level.

The next major resistance is near the $80.80 zone, above which the price may perhaps accelerate higher. In the stated case, it could even visit the $82.50 resistance.

If not, the price might dip again and test the $77.80 support. The first major support on the downside is near the $76.75 level. The next major support is at $75.50 or, below which the price might test $74.20. Any more losses might send oil prices toward $72.65.

Looking at Bitcoin, there was a sharp increase after the price broke the $67,500 resistance zone, but there was no upside continuation.

Economic Releases to Watch Today

  • US Initial Jobless Claims - Forecast 225K, versus 229K previous.
  • US Producer Price Index for May 2024 (YoY) – Forecast +2.5%, versus +2.2% previous.
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