Price of Crude Oil Broke Resistance Ahead of The Fed Interest Rate Release

Key Take-Aways

Above the $73 resistance, the price of crude oil began to rise again.

On the 4-hours chart, it broke over a crucial negative trend line that was resistance near $73.20.

The price of gold increased and surpassed the $1,800 resistance level.

Today is the scheduled date for the Fed interest rate decision (estimated 4.5%, up from 4% previously).

Technical Analysis of Crude Oil

From the $70.20 support area against the US dollar, the price of crude oil began a new rise. Price increased in velocity and traded above the $73.00 resistance region.

On the XTI/USD 4-hours chart, a significant negative trend line with resistance near $73.20 was broken above. The primary slide from the $82.91 swing high to the $70.22 low was clearly over the 23.6% Fib retracement level.

The resistance level of $74.50 and the 100 simple moving average were breached. The price may encounter sellers in the $76.50 area and the 200 simple moving average on the upside.

The price may test resistance at $80 if it rises above the next significant resistance, which is located at $78. Another steady rise in the coming days might be possible with a clear break above the $80 resistance.

Near the $73.20 region and the 100 simple moving average, an immediate support is currently developing. The area around $72.10 is the next significant support. The $70.20 support area may need to be tested if there are any additional losses.

Looking at the price of gold, there has been a consistent rise over the $1,800 resistance, and there may be further gains in the near future.

Economic Announcements to Trade Today

  • UK Consumer Price Index for November 2022 (YoY): forecasted increase of 10.9% vs. prior increase of 11.1%.
  • Forecasted UK Core Consumer Price Index for November 2022 (YoY): +6.5% vs. +6.5% in the prior period.
  • Forecasted Fed interest rate increase from 4% to 4.5%.

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.