Key Highlights
- Crude oil price is trading with a bullish bias above the $71.00 support against the US dollar.
- There is a key ascending channel in place with support at $71.40 on the 4-hours chart of XTI/USD.
- The Fed increased interest rates from 2.00% to 2.25%.
- The US GDP for Q2 2018 will be released today, which is forecasted to grow 4.2%.
Crude Oil Price Technical Analysis
There was a solid support base formed near $68.40 in crude oil price against the US Dollar. The price started an upward move and traded above the $70.00 and $71.00 resistances.
Looking at the 4-hours chart of XTI/USD, the price remained in an uptrend and settled above the $71.00 support and the 100 (red) simple moving average (4-hours). The price traded as high as $72.91 recently and it is currently correcting lower.
It broke the 23.6% Fib retracement level of the last wave from the $70.18 low to $72.91 high. The current price action suggests that there could be more gains above the $72.00 level.
On the downside, there is a major support formed near $71.40-50. There is also a key ascending channel in place with support at $71.40 on the 4-hours chart of XTI/USD.
The channel support is close to the 50% Fib retracement level of the last wave from the $70.18 low to $72.91 high. Therefore, as long as the price is above the $71.40 support, there could be more gains towards $73.00 in the short term.
If there is a break below $71.40, the price may perhaps test the next major support at $71.00.
Economic Releases to Watch Today
- German Consumer Price Index for Sep 2018 (YoY) (Preliminary) – Forecast +2%, versus +2% previous.
- German Consumer Price Index for Sep 2018 (MoM) (Preliminary) – Forecast +0.1%, versus +0.1% previous.
- US Gross Domestic Product Q2 2018 – Forecast 4.2% versus previous 4.2%.
- US Durable Goods Orders for August 2018 – Forecast +2.0% versus -1.7% previous.
