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%.
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