Key Highlights
- Crude oil price is following a bearish path below the $32.00 resistance against the US dollar.
- A break below $27.00 could spark more downsides towards $25.00 and $22.00.
- A medium term bearish trend line is forming with resistance near $40.00 on the 4-hours chart of XTI/USD.
- The Euro Zone CPI is likely to increase 1.2% in Feb 2020 (YoY).
Crude Oil Price Technical Analysis
This month, crude oil price declined heavily from well above the $45.00 support. It is down more than $15.00 in the past few days and it even broke the $30.00 support area.
Looking at the 4-hours chart of XTI/USD, the price opened with a huge gap and traded below the $32.00 and $30.00 support levels. Moreover, there was a break below the $28.00 support and the price settled well below the 100 simple moving average (red, 4-hours), and the 200 simple moving average (green, 4-hours).
After trading as low as $27.24, there was a minor upside correction. However, the price struggled to clear the $36.00 area and topped near $36.25.
As a result, there was a fresh decline below the $32.00 support and the price is now trading with a bearish angle. If there is a downside break below the $27.00 area, the price could test the $25.00 support or $22.00 region.
Conversely, there are many hurdles on the upside near the $30.60 and $32.00 levels. To start a strong recovery wave, the price must climb above the $32.00 resistance and then gain pace above $34.00.
Looking at major pairs, EUR/USD failed to stay above the 1.1000 support area and extended its decline. Moreover, GBP/USD is diving and it recently broke the key 1.2120 support area.
Economic Releases to Watch Today
- Euro Zone CPI for Feb 2020 (YoY) – Forecast +1.2%, versus +1.2% previous.
- Euro Zone CPI for Feb 2020 (MoM) – Forecast +0.2%, versus -1.0% previous.
- US Housing Starts Feb 2020 (MoM) – Forecast 1.500M, versus 1.567M previous.
- US Building Permits Feb 2020 (MoM) – Forecast 1.50M, versus 1.55M previous.
- Canadian CPI Feb 2020 (MoM) – Forecast +0.4%, versus +0.3% previous.
- Canadian CPI Feb 2020 (YoY) – Forecast +2.1%, versus +2.4% previous.
