Crude Oil Price Was Constrained By The $100 Resistance Level, GDP of Canada Next

Key Take-Aways

  • Above the $90 resistance, the price of crude oil began to rise steadily.
  • On the 4-hours chart, it broke over a crucial negative trend line with resistance at $90.70.
  • GBP/USD started a new fall after failing to bounce back.
  • In August 2022, the US ADP Employment could increase by 200K from 128K.

Technical Analysis of Crude Oil

Crude oil prices began a new rise against the US dollar after establishing a base above the $85 mark. The resistance levels of $90 and $92 were successfully overcome by the price.

On the XTI/USD 4-hours chart, the 100 simple moving average (red, 4-hours) and the 200 simple moving average were broken above the $92.50 resistance level (green, 4-hours).

The negative movement from the $103.63 swing high to the $85.81 low was clearly above the 50% Fib retracement line. Even the price was raised over the $95 resistance area by the bulls. They were unable to move the price toward the $100 resistance, though.

Near the 61.8% Fib retracement level of the decline from the swing high of $103.63 to the low of $85.81, the price was struggling. A high was created close to the $97.60 region.

Below the $96 mark and the 200 simple moving average, the price corrected a few points (green, 4-hours). Near $91.50 is the next significant support. Under $90.00, where the primary support is located, there is a possibility of a decline toward the $86.50 level. If there are any further losses, the $85 area may need to be tested.

The price is encountering resistance at the $96.50 and $97.50 levels on the upswing. The pace for a greater climb toward $100 could be set by a definite move above the $97.50 barrier. Near $102.50 is the next significant resistance; if this level is broken, the price may rise quickly toward the $105 region.

When examining the GBP/USD pair, it is evident that there is a clear possibility of a decline below the 1.1600 support region.

Economic News to Trade Today

  • Germany’s unemployment rate is expected to change in August 2022 by 28K from the previous 48K.
  • Forecast 5.5% unemployment in August 2022 in Germany, up from 5.4% in the previous month.
  • US ADP Employment Change for August 2022 is predicted to increase by 200K from the previous 128K.

Canadian GDP for Q2 2022 (annualized) is expected to increase by

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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