Oil Price Broke The $64.00 Support Zone To Move Into A Bearish Zone

Crude oil price started a sharp downside correction after it failed to settle above $65.00 against the US Dollar. The price broke the $64.00 support zone to move into a bearish zone.

The price declined heavily below $62.50 and settled well below the 50 hourly simple moving average. It traded as low as $58.29 and it is currently correcting higher. There is also a key bullish trend line forming with support at $59.85 on the hourly chart.

If there is a downside break below the trend line support, the price could start a fresh decline towards $58.50. The next major support is near the $57.50 level, followed by $57.20 on FXOpen.

On the upside, an initial resistance is near the $60.80 and $61.00 levels. The main hurdle is now near the $61.50 level, above which the price tests the key $64.00 resistance.