Crude Oil Price At Risk Of More Downsides

Key Highlights

  • Crude oil price is struggling to recover above $80.50.

  • A major bearish trend line is forming with resistance near $80.50 on the 4-hours chart of XTI/USD.

  • EUR/USD extended decline below the 1.1300 support zone.

  • GBP/USD is attempting an upside correction above 1.3450.

Crude Oil Price Technical Analysis

Crude oil price started a downside correction from the $85.00 zone against the US Dollar. The price traded below the $82.50 support to move into a short-term bearish zone.

Looking at the 4-hours chart of XTI/USD, the price even settled below $82.50, the 100 simple moving average (4-hours, red) and the 200 simple moving average (4-hours, green).

There was a break below the $81.20 support zone and the $80.00 zone. The price even spiked below $79.20. If the bears remain in action, the price could slide towards the $78.20 level. The next major support is near the $77.50 level.

On the upside, an initial resistance is near the $80.50 level. There is also a major bearish trend line forming with resistance near $80.50 on the same chart.

The next major resistance is near the $81.50 level and the 200 SMA, above which the price could rise towards the $82.50 level. Any more gains could send the price towards $83.20.

Looking at EUR/USD, the pair failed to recover above 1.1350 and extended losses below the 1.1300 support zone. Besides, GBP/USD could recover further if it clears the 1.3500 level.

Economic Releases to Watch Today

  • US Initial Jobless Claims – Forecast 260K, versus 267K previous.

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