WTI Crude Oil Faces Resistance: Can Recovery Take Hold? – Action Forex

Key Highlights

WTI Crude Oil prices are struggling to recover above the $70.00 resistance zone.
A connecting bearish trend line is forming with resistance at $69.75 on the 4-hour chart.
Gold prices could advance if there is a clear move above $2,700.
EUR/USD must surpass 1.0700 to gain bullish momentum.

WTI Crude Oil Price Technical Analysis

WTI Crude Oil price found support near the $67.00 zone. A base was formed and the price started a short-term recovery wave above $68.00.

Looking at the 4-hour chart of XTI/USD, the price traded above the 38.2% Fib retracement level of the downward move from the $70.57 swing high to the $67.04 low. It seems like the bulls are facing hurdles near the $70.00 zone.

The price is also below the 100 simple moving average (red, 4-hour) and the 200 simple moving average (green, 4-hour). There is also a connecting bearish trend line forming with resistance at $69.75 on the same chart.

The trend line is close to the 76.4% Fib retracement level of the downward move from the $70.57 swing high to the $67.04 low. The main hurdle is still near the $70.00 zone, above which the price may perhaps accelerate higher.

In the stated case, it could even visit the $71.50 resistance. Any more gains might call for a test of the $72.80 resistance zone in the near term.

On the downside, the first major support sits near the $67.80 zone. A daily close below $67.80 could open the doors for a larger decline. The next major support is $66.00. Any more losses might send oil prices toward $65.00 in the coming days.

Looking at Gold, there was a steady increase above the $2,650 level and the bulls could now aim for a move above $2,700.

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