Crude Oil Price Extends Rally Above $70, Dollar Consolidates

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Key Highlights

  • Crude oil prices gained a bullish momentum above $ 66.50 and $ 68.50.
  • A key bullish trend line is forming with support close to $ 69.10 on the XTI / USD 4-hour chart.
  • EUR / USD remains strong above the 1.2100 support zone.
  • GBP / USD is still struggling to get speeds above 1.4200 and 1.4220.

Technical Analysis of Crude Oil

After a clear break above the resistance of $ 65.00, oil price climbed steadily against the US dollar. The price broke the resistance levels of $ 66.50 and $ 68.00 to further move into a positive zone.

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Looking at the 4-hour chart of XTI / USD, the price has settled nicely above the $ 68.00 zone, the 100 simple moving average (red, 4-hour), and the 200 simple moving average (green, 4-hour).

Finally, there was a break above the $ 70.00 level. The price traded to a new multi-month high near $ 70.40 and is now consolidating gains. Initial support is down close to the $ 70.00 level.

The first major support is near $ 69.20. The 23.6% Fib retracement level of the upward movement from the low $ 65.25 to the $ 70.40 high is also close to $ 69.20. There is also a key bullish trend line forming with support close to $ 69.10 on the same chart.

If there is a downside below $ 69.00, the price could decline to the $ 67.50 support. The next major support is close to the $ 66.40 level.

On the upside, the first major resistance is approaching the $ 70.50 level. A clear break above the $ 70.50 level could open the doors for a break above the $ 72.00 level.

Looking at EUR / USD, the pair is stable above the 1.2100 and 1.2120 support levels. Moreover GBP / USD needs to rush above 1.4220 for strong growth.

Economic Editions to Watch Today

  • US Wholesale Inventories for April 2021 (preliminary) – Forecast + 0.8%, versus + 0.8% previous.
  • BoC Interest Rate Decision – Forecast 0.25%, vs. 0.25% previous.

Source

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