Key Highlights
- Crude oil prices declined heavily toward $7520 before the bulls appeared.
- A key bearish trend line is forming with resistance near $78.80 on the 4-hour chart.
- Gold prices started a fresh increase from the $1,935 support zone.
- EUR/USD surged above the 1.0720 resistance zone.
Crude Oil Price Technical Analysis
In the past few days, Crude oil prices saw a steady decline amid the Israel-Hamas war. The price declined toward the $75.00 zone before the bulls appeared.
Looking at the 4-hour chart of XTI/USD, the price settled below the $80.00 pivot level, the 200 simple moving average (green, 4-hour), and the 100 simple moving average (red, 4-hour).
A low was formed near $75.25 and recently the price started an upside correction. There was a move above the $77.50 resistance zone. However, the price failed to clear the $78.80 resistance zone. It struggled near the 23.6% Fib retracement level of the downward move from the $90.96 swing high to the $75.25 low.
There is also a key bearish trend line forming with resistance near $78.80 on the same chart. The next major resistance is near the $81.20 zone or the 38.2% Fib retracement level of the downward move from the $90.96 swing high to the $75.25 low, above which the price may perhaps accelerate higher.
In the stated case, it could even visit the $83.20 resistance or the 200 simple moving average (green, 4-hour) in the coming days.
If not, the price might continue to move down. Immediate support is near the $75.80 level. The next support is at $75.00, below which there is a risk of a sharp decline. In the stated case, the price could dive toward the $72.50 support. Any more losses might call for a test of the $70.00 support zone.
Looking at gold prices, there was a consolidation phase near the $1,960 level and the bulls might now aim for more upside.
Economic Releases to Watch Today
- US Initial Jobless Claims – Forecast 220K, versus 217K previous.
