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WTI Crude Oil at Risk — More Downside Could Be Coming

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Aayush Jindal

Key Highlights

  • WTI Crude Oil prices started a fresh decline below the $70.00 zone.
  • A rising channel is forming with support at $66.50 on the 4-hour chart.
  • Gold bulls are struggling to clear the $3,350 resistance.
  • EUR/USD extended losses and corrected below the 1.1720 zone.

WTI Crude Oil Price Technical Analysis

WTI Crude Oil price failed to continue higher above $72.50 against the US Dollar. There was a strong bearish reaction below the $70.00 and $68.00 levels.

Looking at the 4-hour chart of XTI/USD, the price settled below the $70.00 level and the 100 simple moving average (red, 4-hour). A low was formed at $65.00, and the price recently started a consolidation phase.

There was a move above the $68.00 level, but the bears remained active near the 100 simple moving average (red, 4-hour). On the upside, immediate resistance is near the $68.0 level. The first key resistance sits near the $70.00 level.

The main hurdle is now near the $71.80 zone, above which the price may perhaps accelerate higher. In the stated case, it could even visit the $73.50 resistance. Any more gains might call for a test of the $75.00 resistance zone in the near term.

On the downside, the first major support sits near the $66.20 zone. The next support could be $65.00. A daily close below $65.00 could open the doors for a larger decline. The next major support is $63.40. Any more losses might send oil prices toward $62.00 in the coming days.

Looking at Gold, the bears are active below the $3,650 level, and they might aim for a drop toward the $3,260 level.

Economic Releases to Watch Today

  • USDA WASDE Report.
  • Baker Hughes US Oil Rig Count.
  • Monthly Budget Statement (Jun).
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