Price Of Crude Oil Declines Below Multi-Months Lows, Gold Could Move Higher in The Near Term
- From the $95.50 resistance, the price of crude oil started to decrease again.
- On the 4-hour chart, obstacles are currently present at $89.50 and $90.00.
- The price of gold fell back and traded below the $1,780 level of support.
- The USD/EUR and USD/GBP remain vulnerable to further declines.
Technical Analysis of Crude Oil
The price of crude oil faced sellers near $95.50 versus the US dollar following a brief recovery surge. Below the $92.50 support area, the price started to drop once more.
On the XTI/USD 4-hours chart, a break below the $92.00 and $90.00 levels was seen. Even yet, the price ended below the $90 mark, the red 4-hour 100 simple moving average, and the 200 simple moving average.
At $89.50 and $88.10 on the same chart, two connected trend lines were breached by the price during the downturn. Price recently went as low as $85.81 and is now extending losses.
The price is meeting resistance at the $89.50 and $90.00 levels on the upside. The pace for a greater advance toward $92.50 could be set by a clear break above the $90.00 barrier. Near $95.50 is the next significant resistance; if this level is broken, the price may rise quickly toward the $100 region.
On the other hand, if the price falls below $86, it can start to depreciate again. Near $85.50 is the next significant support. Below $83.20, where the primary support is located, there is a chance of a decline toward the $80.00 level. If there are any further losses, the $78 area may need to be tested.
Looking at the EUR/USD pair, it is evident that there is a risk of a move below the 1.0100 support area. The pair struggled to correct higher.
Economic News to Trade Today
- US Initial Jobless Claims: 265K expected, up from 262K in the previous period.
- The forecast The US existing home sales for July 2022 (MoM) is forecasted at 5.2%, down from the previous 5.4%.
Author: Amogo Solomon
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