Key Highlights
- Crude oil price extended its decline below $55.00 and $54.00 against the US dollar.
- There is a major bearish trend line forming with resistance near $55.20 on the 4-hours chart of XTI/USD.
- EUR/USD dived below 1.1020 and GBP/USD failed to stay above the 1.3050 support.
- The US GDP is likely to grow 2.1% in Q4 2019 (Preliminary).
Crude Oil Price Technical Analysis
This month, crude oil price started a strong decline from the $65.00 resistance area. It is down more than $10 in the past few days and recently settled below the $55.00 level.
Looking at the 4-hours chart of XTI/USD, the price gained bearish momentum after it settled below the $58.00 level, the 100 simple moving average (red, 4-hours), and the 200 simple moving average (green, 4-hours).
It even dived below the $54.00 support level. A low is formed near the $52.13 and the price is currently correcting higher. On the upside, the first resistance is near the $55.00 area since it is close to the 38.2% Fib retracement level of the drop from $59.63 to $52.13.
Moreover, there is a major bearish trend line forming with resistance near $55.20 on the 4-hours chart of XTI/USD. The trend line is close to the 50% Fib retracement level of the drop from $59.63 to $52.13.
Above the trend line resistance, the price might recover towards the $58.00 resistance and the 100 SMA. Any further gains could start a fresh uptrend above $60.00.
On the downside, the $52.20 and $52.00 levels are initial supports. A clear break below $52.00 may perhaps lead the price towards the $50.00 support.
Looking at major pairs, EUR/USD declined below 1.1020 and 1.0000. Similarly, GBP/USD broke the 1.3000 support and seems to be struggling below 1.3050.
Economic Releases to Watch Today
- BoE Interest Rate Decision – Forecast 0.75%, versus 0.75% previous.
- German CPI for Jan 2020 (YoY) (Prelim) – Forecast +1.6%, versus +1.6% previous.
- German CPI for Jan 2020 (MoM) (Prelim) – Forecast +0.2%, versus +0.2% previous.
- US Gross Domestic Product Q4 2019 (Preliminary) – Forecast 2.1% versus previous 2.1%.
- US Initial Jobless Claims – Forecast 215K, versus 211K previous.
