Key Highlights
- Crude oil price found support near $55.00 and bounced back against the US dollar.
- Earlier, there was a break below a major bullish trend line with support near $55.80 on the 4-hours chart of XTI/USD.
- Canada’s CPI increased 0.3% in Oct 2019 (MoM), similar to the market forecast.
- The US Existing Home Sales could rise 1.4% in Oct 2019 (MoM).
Crude Oil Price Technical Analysis
After a slow and steady rise, crude oil price faced a strong resistance near the $58.00 level against the US Dollar. As a result, the price started a fresh decline below the $57.20 and $57.00 support levels.
Looking at the 4-hours chart of XTI/USD, the price even broke the $56.50 support area and the 100 (red) simple moving average (4-hours). Moreover, there was a break below a major bullish trend line with support near $55.80.
Finally, the price spiked below the $55.00 support and tested the 200 (green) simple moving average (4-hours). Recently, it started an upside correction above the $55.00 level.
It broke the 23.6% Fib retracement level of the recent decline from the $58.06 high to $54.76 low. However, there are many resistances on the upside near $56.00 and $56.40 levels.
The main resistance is near $56.50 and the 100 (red) simple moving average (4-hours). It coincides with the 50% Fib retracement level of the recent decline from the $58.06 high to $54.76 low.
Therefore, a successful close above $56.50 could push the price towards the $58.00 resistance. Conversely, if the price fails to continue above $56.50, it could resume its decline. An initial support is near the $55.00 level, below which there is a risk of a breakdown below the $54.70 level.
Overall, crude oil price is likely to climb higher as long as it is above $55.00. Looking at major pairs, EUR/USD is holding the 1.1050 support area, and GBP/USD is likely to extend gains above 1.2950.
Economic Releases to Watch Today
- US Initial Jobless Claims – Forecast 219K, versus 225K previous.
- US Existing Home Sales for Oct 2019 (MoM) – Forecast +1.4%, versus -2.2% previous.
- Canada’s ADP Employment Change for Oct 2019 – Forecast 53.3K, versus 28.2K previous.
