Key Highlights
- Crude oil price started a downside correction from a new multi-month high at $58.59.
- There was a break below a major bullish trend line at $58.10 on the 4-hours chart of XTI/USD.
- Gold price recovered above $1,840, but it is facing hurdles near $1,860.
- The US CPI is likely to increase 1.5% in Jan 2021 (YoY), up from 1.4%.
Crude Oil Price Technical Analysis
In the past few days, crude oil price saw a strong increase above the $55.00 support against the US Dollar. The price even traded to a new multi-month high at $58.59 before correcting lower.
Looking at the weekly chart of XTI/USD, the price started a downside correction below the $58.00 level. There was also a break below a major bullish trend line with support at $58.10. The price even spiked below the 23.6% Fib retracement level of the upward move from the $55.27 swing low to $58.59 high.
However, the price found support near the $57.50 level. The next key support is near the $57.00 level. It is close to the 50% Fib retracement level of the upward move from the $55.27 swing low to $58.59 high.
Besides, the price is now trading well above the 100 simple moving average (red, 4-hours) and the 200 simple moving average (green, 4-hours).
On the upside, the price is likely to struggle near $58.50 and the broken trend line. A clear break above the $58.50 level may possibly clear the path for a push towards the $60.00 level.
Looking at EUR/USD, there was a decent recovery towards the 1.2100 resistance. GBP/USD is holding gains nicely above the 1.3720 and 1.3700 support levels.
Economic Releases to Watch Today
- German Consumer Price Index Jan 2021 (YoY) – Forecast +1%, versus +1% previous.
- German Consumer Price Index Jan 2021 (MoM) – Forecast +0.8%, versus +0.8% previous.
- US Consumer Price Index Jan 2021 (MoM) – Forecast +0.3%, versus +0.4% previous.
- US Consumer Price Index Jan 2021 (YoY) – Forecast +1.5%, versus +1.4% previous.
