The Price of Crude Oil Could Break And Gain Higher, Next is US CPI Report

Key Take-Aways

  • The price of crude oil began a steady rise from the $72.50 region.
  • On the 4-hours chart, a significant bullish trend line is developing with support close to $75.20.
  • If the price of bitcoin surpasses the $18,000 resistance, it might increase.

Technical Analysis of Crude Oil

The $81.50 resistance level for crude oil against the US dollar marked the beginning of a new slump. Price fell below $78 but found support close to the $72.50 region.

On the XTI/USD 4-hours chart, the price dropped as low as $72.42. Above the $74 and $74.50 resistance levels, there was recently a respectable gain. The 38.2% Fib retracement level of the decline from the $81.45 swing high to the $72.42 low was successfully crossed by the price.

The 100 simple moving average (red, 4-hours) and the 200 simple moving average, however, appear to be major obstacles for the price. It is also very near the level of the 50% Fibonacci retracement of the decline from the $72.42 low to the $81.45 swing high.

The $78 area represents the next significant resistance. Another steady rise toward $82 or perhaps $84 could be possible with a clear break above the $78 resistance.

If not, the cost could return to $78. Near the $75.20 region, an immediate support is currently developing. On the same chart, a significant bullish trend line with support close to $75.20 is also developing.

Near the $73.20 mark, the next significant support is located. The $72.40 support area may need to be tested in the upcoming days if there are any additional losses.

Although there was an upward break above the $17,000 level in terms of the price of bitcoin, there are still numerous obstacles to the upside.

Economic News To Trade Today

  • US Initial Jobless Claims: 215K expected, up from 204K in the previous period.
  • Forecast for the US Consumer Price Index for December 2022 (YoY) is +6.5%, up from the previous +7.1%.
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.