WTI Crude Oil Prices Surge: Bulls Drive the Rally, US CPI Next – Action Forex
Key Highlights
- WTI Crude Oil prices started a fresh increase above the $73.50 resistance zone.
- A connecting bullish trend line is forming with support at $75.35 on the 4-hour chart.
- Gold prices started a consolidation phase above the $2,635 support.
- The US CPI could increase by 2.9% in Dec 2024 (YoY).
WTI Crude Oil Price Technical Analysis
WTI Crude Oil price found support near the $72.00 zone. A base was formed and the price started a fresh increase above $75.00.
Looking at the 4-hour chart of XTI/USD, the price traded gained pace for a move above the $76.80 resistance zone, the 100 simple moving average (red, 4-hour), and the 200 simple moving average (green, 4-hour).
The bulls even pushed prices above the $78.00 level. A high was formed at $79.28 and the price is now consolidating gains. There was a minor decline toward the 23.6% Fib retracement level of the upward move from the $72.92 swing low to the $79.28 high.
On the upside, the price is facing hurdles near the $79.20 level. The main hurdle is now near the $80.00 zone, above which the price may perhaps accelerate higher.
In the stated case, it could even visit the $82.50 resistance. Any more gains might call for a test of the $85.00 resistance zone in the near term. On the downside, the first major support sits near the $76.85 zone.
A daily close below $76.85 could open the doors for a larger decline. The next major support is $75.35 and the trend line. Any more losses might send oil prices toward $72.00 in the coming days.
Looking at Gold, there was a steady increase above the $2,635 level and the price is now consolidating gains.
Economic Releases to Watch Today
- US Consumer Price Index for Dec 2024 (MoM) – Forecast +0.3%, versus +0.3% previous.
- US Consumer Price Index for Dec 2024 (YoY) – Forecast +2.9%, versus +2.7% previous.
US Consumer Price Index Ex Food & Energy for Dec 2024 (YoY) – Forecast +3.3%, versus +3.3% previous.
