Key Highlights
- Crude oil prices started a recovery wave from the $65.50 support.
- A major bearish trend line is forming with resistance at $72.50 on the 4-hour chart.
- Gold consolidated gains after trading to a new all-time high above $2,580.
- EUR/USD regained traction for a move above the 1.1100 level.
Crude Oil Price Technical Analysis
Crude oil prices tested the $65.50 zone before the bulls appeared. The price formed a base and recently started a recovery wave above $67.50.
Looking at the 4-hour chart of XTI/USD, the price was able to clear the $68.50 resistance, but it remained well below the 100 simple moving average (red, 4-hour) and the 200 simple moving average (green, 4-hour).
There was a test of the 38.2% Fib retracement level of the downward move from the $78.40 swing high to the $65.51 low. On the upside, the price might face resistance near the $70.50 level.
The next major resistance is near the $72.00 zone or the 50% Fib retracement level of the downward move from the $78.40 swing high to the $65.51 low, above which the price may perhaps accelerate higher.
In the stated case, it could even visit the $72.50 resistance. There is also a major bearish trend line forming with resistance at $72.50 on the same chart.
On the downside, the first major support sits near the $68.500 level. A daily close below $68.50 could open the doors for a larger decline. The next major support is $65.50. Any more losses might send oil prices toward $60.00 in the coming sessions.
Looking at Gold, the price is consolidating below the $2,600 level and there are chances of a downside correction toward $2,550.
Economic Releases to Watch Today
- Canadian Consumer Price Index for August 2024 (MoM) – Forecast +0.1%, versus +0.4% previous.
- Canadian Consumer Price Index for August 2024 (YoY) – Forecast +2.4%, versus +2.5% previous.
- US Retail Sales for August 2024 (MoM) – Forecast +0.1%, versus +1.0% previous.
