Crude Oil Price Exposes to Risk of Further Losses

Key Take-Aways

  • 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 is a Broker-Dealer/Market Research analyst and writer in ACT Brokers with a background in Computer Science, Data Analytics, and Forex Broker Dealing. He specializes in Forex Dealing, markets Analysis, Currency research, forex fundamental and technical analysis, and Monitoring of Forex trends, Stocks, Equities, Cryptos, and Commodities. He possesses strong technical and analytical skills and is well known for his entertaining and informative analysis of the global economy, fiat currency, commodities, Stocks, Indexes, Futures, and Options markets. He held a Bachelor's degree in Computer Science and Nanodegree in Programming for Data Science Enterprise.

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