Key Highlights
- Crude oil price is trading nicely above the $50.00 support zone.
- A bullish trend line is forming with support near $52.00 on the 4-hours chart of XTI/USD.
- GBP/USD and EUR/USD traded higher above 1.2150 and 1.3700 respectively.
- The US Durable Goods Orders could increase 0.9% in Dec 2020.
Crude Oil Price Technical Analysis
After trading to a new multi-month high above $53.50, crude oil price corrected lower against the US Dollar. However, it remained well bid above $50.00 and it is currently showing positive signs.
Looking at the 4-hours chart of XTI/USD, the price corrected below the $52.50 support level, but it remained well above the 100 simple moving average (red, 4-hours) and the 200 simple moving average (green, 4-hours).
The recent low was formed near $51.39 before the price started a fresh increase. It broke the $52.00 and $52.50 resistance levels.
It even climbed above the 50% Fib retracement level of the downward move from the $53.75 high to $51.39 low. An immediate resistance on the upside is near the $53.25 level. The main resistance is near the $53.80 level, above which the price could quickly test $55.00.
On the downside, there is a bullish trend line forming with support near $52.00 on the same chart. The next major support is near $51.80 and the 100 simple moving average (red, 4-hours).
Any more losses could easily drift oil price towards the $50.00 support or the 200 simple moving average (green, 4-hours).
Looking at EUR/USD, there was recovery wave, but the pair is still facing hurdles near 1.2200. Conversely, GBP/USD is showing positive signs and it could even break the 1.3750 resistance.
Economic Releases to Watch Today
- US Durable Goods Orders Dec 2020 – Forecast +0.9% versus +1% previous.
- US Nondefense Durable Goods Orders Ex Aircraft Dec 2020 – Forecast +0.5% versus +0.5% previous.
