(function() { var didInit = false; function initMunchkin() { if(didInit === false) { didInit = true; Munchkin.init('105-GAR-921'); } } var s = document.createElement('script'); s.type = 'text/javascript'; s.defer = true; s.src = '//munchkin.marketo.net/munchkin.js'; s.onreadystatechange = function() { if (this.readyState == 'complete' || this.readyState == 'loaded') { initMunchkin(); } }; s.onload = initMunchkin; document.getElementsByTagName('head')[0].appendChild(s); })();

Crude Oil Price Likely To Extend Losses Below $57.00

Article background

Aayush Jindal

Key Highlights

  • Crude oil price declined heavily and broke thekey $60.50 support area against the US dollar.
  • There was a break below a major ascendingchannel with support at $61.40 on the 4-hours chart of XTI/USD.
  • The Richmond Fed Manufacturing Index in May 2019increased from 3 to 5.
  • The US GDP in Q1 2019 (Preliminary) could grow3.1%, less than the last 3.2%.

Crude Oil Price Technical Analysis

After multiple rejections near the $64.00 level, crude oil price started a strong downward move against the US Dollar. The price broke the key $61.20 and $60.50 support levels to enter a bearish zone.

Crude Oil Price Technical Analysis

Looking at the 4-hours chart of XTI/USD, theprice settled below the $60.00 pivot level, the 100 (red) simple moving average(4-hours), and the 200 (green) simple moving average (4-hours).

The price traded as low as $57.20 before starting an upsidecorrection. There was a recovery above the $58.80 level and the 23.6% Fibretracement level of the decline from the $63.78 high to $57.20 low.

However, the price failed to gain pace above the $59.50level and recently broke an ascending channel. The current technical structureseems bearish and there are chances of more losses below the $57.00 and $56.00support levels.

The next main support level is near the $55.00 level. On theupside, an initial resistance is at $59.20, above which the price could recovertowards the $60.00 resistance level.

Fundamentally, the Richmond Fed Manufacturing Index for May2019 was released by Federal Reserve Bank of Richmond. The market was lookingfor an increase from 3 to 6.

The actual result was lower than the forecast, as the RichmondFed Manufacturing Index increased to 3 to 5. Shipments and new orders weremostly flat, and employment remained positive.

The report added:

Firms continued to struggle to find workers with the necessary skills as this index dropped from −8 in April to −20 in May.

Looking at major pairs, EUR/USD and GBP/USD declined heavily below key supports and they might continue to slide in the near term.

Economic Releases to Watch Today

  • US Initial Jobless Claims - Forecast 215K,versus 211K previous.
  • US Gross Domestic Product Q1 2019 (Preliminary)– Forecast 3.1% versus previous 3.2%.
Great
Trustpilot
Open an AccountOpen Share Account24/7 Support
Loading