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Crude Oil Price Extends Rally Above $70, Dollar Consolidates

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Aayush Jindal

Key Highlights

  • Crude oil price gained bullish momentum above $66.50 and $68.50.
  • A key bullish trend line is forming with support near $69.10 on the 4-hours chart of XTI/USD.
  • EUR/USD remains strong above the 1.2100 support zone.
  • GBP/USD is still struggling to gain pace above 1.4200 and 1.4220.

Crude Oil Price Technical Analysis

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

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

Finally, there was a break above the $70.00 level. The price traded to a new multi-month high near $70.40 and it is now consolidating gains. An initial support on the downside is near the $70.00 level.

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

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

On the upside, the first major resistance is near 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. Besides, GBP/USD needs to gain pace above 1.4220 for a strong increase.

Economic Releases to Watch Today

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