Crude Oil Price Rallies While Dollar Extends Increase

Key Highlights

  • Crude oil price started a fresh rally above $70.00 and $75.00.

  • A key rising channel is forming with support near $74.30 on the 4-hours chart of XTI/USD.

  • EUR/USD extended its decline below the 1.1700 support zone.

  • GBP/USD declined heavily below 1.3650 and 1.3600.

Crude Oil Price Technical Analysis

After forming a support base above $70.00, crude oil price started a fresh rally against the US Dollar. The price broke the $72.50 resistance zone to move into a positive zone.

Looking at the 4-hours chart of XTI/USD, the price even climbed above the $75.00 resistance zone. The price even spiked above $76.50, and it settled above the 100 simple moving average (4-hours, red) and the 200 simple moving average (4-hours, green).

A high was formed near $76.79 before it started a minor downside correction. There was a break below the $75.50 level. On the downside, an immediate support is near the $74.40 level.

The first major support is near $74.30. There is also a key rising channel forming with support near $74.30 on the same chart. The next major support is near $73.20 and the 50% Fib retracement level of the upward move from the 69.57 swing low to $76.79 high.

Any more losses could open the doors for a move towards the $72.00 support. On the upside, an initial resistance is near the $75.50 level. The next major resistance is near the $76.50 level, above which the price could rise towards the $78.00 level.

Looking at EUR/USD, the pair started a fresh decline below the 1.1700 support zone. Besides, GBP/USD accelerated lower below the key 1.3600 support zone.

Economic Releases to Watch Today

  • Euro Zone Consumer Confidence for Sep 2021 – Forecast -4, versus -4 previous.

  • Euro Zone Services Sentiment for Sep 2021 – Forecast 16.5, versus 16.8 previous.

  • US Pending Home Sales for August 2021 (YoY) – Forecast +14.5%, versus -8.5% previous.

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