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Crude Oil Price Remains Strong, Dollar Under Pressure

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Aayush Jindal

Key Highlights

  • Crude oil price extended its upward move towards the $67.00 level.
  • A major bullish trend line is forming with support near $64.20 on the 4-hours chart of XTI/USD.
  • EUR/USD and GBP/USD extended gains above 1.2000 and 1.4180 respectively.
  • Canada’s CPI could increase 3.2% in April 2021 (YoY), up from 2.2%.

Crude Oil Price Technical Analysis

After a short-term downside correction to $63.00, crude oil price started a fresh increase against the US Dollar. The price broke the $64.50 and $65.00 resistance levels to move into a positive zone.

Looking at the 4-hours chart of XTI/USD, the price cleared the $66.00 resistance zone. It settled nicely above the $64.50 level, the 100 simple moving average (red, 4-hours), and the 200 simple moving average (green, 4-hours).

It traded to a new multi-week high at $67.01 before correcting lower. There was a break below the 50% Fib retracement level of the upward move from the $63.07 low to $67.01 high.

On the downside, there is a strong support forming near the $64.20 level. There is also a major bullish trend line forming with support near $64.20 on the same chart. If there is a downside break below $64.50, the price could decline towards the $62.00 support.

On the upside, the first major resistance is near the $66.50 level. A clear break above the $66.50 level could open the doors for a steady increase towards the $68.50 and $70.00 levels.

Looking at EUR/USD, there were additional gains above the 1.2200 resistance. Besides, GBP/USD spiked above 1.4200 and it is showing a lot of positive signs.

Economic Releases to Watch Today

  • UK Consumer Price Index for April 2021 (YoY) – Forecast +1.4%, versus +0.7% previous.
  • UK Core Consumer Price Index for April 2021 (YoY) – Forecast +1.3%, versus +1.1% previous.
  • Euro Zone CPI for April 2021 (YoY) - Forecast +0.8%, versus +0.8% previous.
  • Euro Zone CPI for April 2021 (MoM) - Forecast +0.6%, versus +0.9% previous.
  • Canadian Consumer Price Index for April 2021 (MoM) – Forecast +0.4%, versus +0.5% previous.
  • Canadian Consumer Price Index for April 2021 (YoY) – Forecast +3.2%, versus +2.2% previous.
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