Crude Oil Price Extends Rally Above $85

Technical analysis of Forex market

Key Highlights

  • Crude oil price started a fresh increase above the $80.00 resistance.
  • A key bullish trend line is forming with support near $83.50 on the 4-hours chart of XTI/USD.
  • EUR/USD declined to 1.1310, and GBP/USD found support near 1.3565.
  • Gold price remained well bid above the $1,800 support zone.

Crude Oil Price Technical Analysis

This week, crude oil price started a major increase above the $82.50 resistance against the US Dollar. It broke many hurdles near $83.00 and $84.20 to move into a positive zone.

Looking at the 4-hours chart of XTI/USD, the price gained pace above the $85.00 level. The price settled well above the $85.00 level, the 100 simple moving average (4-hours, red) and the 200 simple moving average (4-hours, green).

The bulls pushed the price above the $86.50 level. If the bulls remain in action, the price could rise towards the $88.00 level. The next major resistance is near $90.00, where the bears might take a stand.

An immediate support on the downside is near the $85.50 level. The first major support is near $84.50. There is also a key bullish trend line forming with support near $83.50 on the same chart.

Any more losses could open the doors for a move towards the $82.20 support. In the stated case, there is also a risk of a move towards the $81.50 level.

Looking at EUR/USD, the pair declined heavily below the 1.1380 level, but the bulls were active above 1.1300. Besides, GBP/USD also started a fresh increase from the 1.3565 zone.

Economic Releases to Watch Today

  • Euro Zone CPI for Dec 2021 (YoY) – Forecast +5%, versus +5% previous.
  • Euro Zone CPI for Dec 2021 (MoM) – Forecast +0.4%, versus +0.4% previous.
  • US Initial Jobless Claims – Forecast 220K, versus 230K previous.
  • US Existing Home Sales for Dec 2021 (MoM) – Forecast +0.8%, versus +1.9% previous.