Crude Oil Price Touches $90, Indicators Suggest Loss In Momentum

Technical analysis of Forex market

Key Highlights

  • Crude oil price gained pace and tested the $90.00 level.
  • A key bullish trend line is forming with support near $88.20 on the 4-hours chart of XTI/USD.
  • EUR/USD extended recovery above 1.1300, and GBP/USD spiked above 1.3550.
  • The US ISM Services Index could decline from 62.0 to 59.5 in Jan 2022.

Crude Oil Price Technical Analysis

In the past few days, crude oil price saw a steady increase above $82.00 against the US Dollar. It broke many hurdles near $85.00 and $86.50 to move further into a positive zone.

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

It traded to a new multi-year high above $90.00. The current indicators suggest that the price is losing bullish momentum. An immediate support on the downside is near the $88.50 level. The first major support is near $88.20.

There is also a key bullish trend line forming with support near $88.20 on the same chart. Any more losses could open the doors for a move towards the $85.20 support and the 100 simple moving average (4-hours, red).

On the upside, the bulls are facing resistance near $90.00. The next major resistance is near $92.00, above which the price could rise to $93.50.

Looking at EUR/USD, the pair was able to gain pace for a move above the 1.1300 level. Besides, GBP/USD also started a fresh increase above the 1.3500 resistance zone.

Economic Releases to Watch Today

  • Germany’s Services PMI for Jan 2022 – Forecast 52.2, versus 52.2 previous.
  • Euro Zone Services PMI for Jan 2022 – Forecast 51.2, versus 51.2 previous.
  • UK Services PMI for Jan 2022 – Forecast 53.3, versus 53.3 previous.
  • BoE Interest Rate Decision – Forecast 0.50%, versus 0.25% previous.
  • US Services PMI for Jan 2022 – Forecast 50.9, versus 50.9 previous.
  • US ISM Services Index for Jan 2022 – Forecast 59.5, versus 62.0 previous.
  • US Initial Jobless Claims – Forecast 245K, versus 260K previous.