Price Of Crude Oil Declines Below Multi-Months Lows, Gold Could Move Higher in The Near Term

Key Take-Aways

  • 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%.
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.