- From the $103.50 resistance, the price of crude oil started to decrease once more.
- On the 4-hours chart, a crucial bearish trend line is developing with resistance close to $100.20.
- After failing to surpass 1.0280, the EUR/USD pair began to adjust downward.
- GBP/USD started correcting downward from the 1.2300 area.
Price Technical Analysis of Crude Oil
Following a steady rise beyond $100, the price of crude oil faced sellers when compared to the US dollar. The price began a new fall after struggling to break through the $103.50 barrier area.
On the XTI/USD 4-hours chart, a bearish reaction occurred beneath the $102.00 and $101.00 levels. The price resolved beneath the 100 simple moving average (red, 4-hours) and the 200 simple moving average.
Furthermore, it moved down from the Fibonacci retracement level of 61.8 percent of the rise from the $90.74 swing low to the $102.58 high. There is a possibility of a move towards the $91.50 support region if the bears continue to trade.
Near $90.50 is the next significant support. Under $90, where the primary support is located, there is a possibility of a decline toward the $88.00 level. If there are any more losses, the $85 area may need to be tested.
The price is constrained by resistance near the $98.50 mark on the upside. On the same chart, a significant negative trend line is also developing, with resistance located close to $100.20. The pace for a greater climb toward $103 could be set by a definite move above the trend line resistance. Near $103.50 is the next significant resistance; if this level is broken, the price may rise quickly toward the $106 region.
Looking at the EUR/USD pair, the pair retreated lower after failing to continue its recovery above 1.0280.
GBP/USD also fell below the 1.2200 level of support.
Economic News to Trade Today
- BoE Interest Rate Decision – Predicted 1.75%, versus 1.25% previous.
- US Initial Jobless Claims: 259K expected, up from 256K in the prior week.
Author: Amogo Solomon
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