Key Highlights
- Crude oil prices started a fresh decline below the $80.00 support.
- A connecting bearish trend line is forming with resistance at $78.80 on the 4-hour chart.
- USD/JPY declined heavily below the 155.50 support.
- The US Gross Domestic Product could grow 2% in Q2 2024 (Prelim).
Crude Oil Price Technical Analysis
After a close below the $82.00 level, Crude oil prices started a steady decline. It broke the $80.20 and $80.00 support levels to enter a bearish zone.
Looking at the 4-hour chart of XTI/USD, the price settled below the $80.00 level, the 200 simple moving average (green, 4-hour), and the 100 simple moving average (red, 4-hour). The decline gained pace below the $78.50 level.
Finally, it tested the $77.25 zone and recently started a consolidation phase. There was a minor increase above the $78.00 level. However, the bears are active below $78.50.
There is also a connecting bearish trend line forming with resistance at $78.80 on the same chart. The next major resistance is near the $79.50 zone, above which the price may perhaps accelerate higher. In the stated case, it could even visit the $80.00 resistance.
If not, the price might start another decline. The first major support on the downside is near the $77.25 level. The next major support is $76.50. Any more losses might send oil prices toward $75.00 in the coming sessions.
Looking at USD/JPY, there were heavy losses below the 155.50 and 154.00 levels. The bears seem to be aiming for a move toward 150.00.
Economic Releases to Watch Today
- US Gross Domestic Product for Q2 2024 (Preliminary) – Forecast 2.0% versus previous 1.4%.
- US Durable Goods Orders for June 2024 – Forecast +0.3% versus +0.1% previous.
- US Initial Jobless Claims – Forecast 238K, versus 243K previous.
