Crude Oil Price Turns Red, Risk of More Losses

key items

• The price of crude oil started a fresh decline from the resistance of $103.50.
• A key bearish trend line is forming with resistance near $100.20 on the 4-hour chart.
• EUR/USD struggled to clear 1.0280 and started a bearish correction.
• GBP/USD started a downward correction from the 1.2300 zone.

Crude Oil Technical Analysis

After a steady rise above the $100 level, crude oil prices faced sellers against the US dollar. The price struggled to clear the $103.50 resistance zone and started a fresh decline.

Looking at the 4-hour chart of XTI/USD, there was a bearish reaction below the $102.00 and $101.00 levels. The price even settled below the $100 level, the 100 simple moving average (red, 4 hours) and the 200 simple moving average (green, 4 hours).

It traded below the 61.8% Fib retracement level of the upward move from the $90.74 swing low to $102.58 high. If the bears remain in action, there is a risk of movement to the $91.50 support zone.

The next major support is near $90.50. The main support sits near $90, below which there is a risk of a move to the $88.00 level. Further losses could call for a test of the $85 zone.

On the upside, the price faces resistance near the $98.50 level. In addition, there is a key bearish trend line forming with resistance near $100.20 on the same chart. A clear move above the trend line resistance could set the pace for a bigger rally to $103. The next major resistance is near $103.50, above which the price could accelerate higher to the $106 zone.

Looking at the EUR/USD pair, the pair did not extend its recovery above 1.0280 and corrected lower. Similarly, GBP/USD dipped below the 1.2200 support.

Economic Releases to Watch Today

• BoE Interest Rate Decision – Forecast 1.75%, vs 1.25% previous.
• US Initial Jobless Claims – Forecast 259K, vs 256K previous.