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Crude Oil Price Starts Fresh Decline, Gold Consolidates

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Aayush Jindal

Key Highlights

  • Crude oil price started a fresh decline from well above $72.00.
  • There was a break below a key ascending channel with support near $72.40 on the 4-hours chart of XTI/USD.
  • EUR/USD is holding gains above 1.1830, GBP/USD might surge if it clears 1.4000.
  • The US ADP employment could change 695K in July 2021, up from the last 692K.

Crude Oil Price Technical Analysis

After a decent increase, crude oil price failed to continue above $75.00 against the US Dollar. The price topped near $74.50 and it started a fresh decline.

Looking at the 4-hours chart of XTI/USD, the price traded below the key $73.20 support level and the 200 simple moving average (4-hours, green). The price traded below the 50% Fib retracement level of the upward move from the $65.47 swing low to $74.52 high.

The price even broke the $70.00 support level and settled below the 100 simple moving average (4-hours, red). An immediate support is near the $68.90 level.

It is near the 61.8% Fib retracement level of the upward move from the $65.47 swing low to $74.52 high. Any more losses could open the doors for a move towards $66.00 or $65.00.

On the upside, an initial resistance is near the $71.50 level. The first major resistance is near the $72.00 level and the 100 simple moving average (4-hours, red). The next major resistance is near the $73.00 level.

Looking at EUR/USD, the pair is struggling to clear the 1.1900 resistance level. Besides, GBP/USD is still trading well below the 1.4000 resistance. On the other hand, gold price is consolidating above the $1,800 support zone.

Economic Releases to Watch Today

  • Germany’s Services PMI for July 2021 - Forecast 62.2, versus 62.2 previous.
  • Euro Zone Services PMI for July 2021 – Forecast 60.4, versus 60.4 previous.
  • UK Services PMI for July 2021 – Forecast 57.8, versus 57.8 previous.
  • US Services PMI for July 2021 – Forecast 59.5, versus 59.8 previous.
  • US ISM Services Index for July 2021 – Forecast 60.4, versus 60.1 previous
  • US ADP Employment Change for July 2021 - Forecast 695K, versus 692K previous.
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