Crude Oil Price Surges To $55, Gold Still Struggling

Key Highlights

  • Crude oil price extended its rise and traded to a new multi-month high above $ 55.00.
  • The previous major resistance at $ 51.00 might provide support on the weekly chart of XTI/USD.
  • Gold price is still struggling to clear the USD $ 1,880 resistance zone.
  • EUR/USD failed to recover and it extended its decline below the 1.2060 support.

Crude Oil Price Technical Analysis

In the past few days, crude oil price consolidated above the $ 50.00 support against the US Dollar. Finally, the price gained bullish momentum above the $ 52.00 and $ 53.20 resistance levels.

Looking at the weekly chart of XTI/USD, the price remains in a strong uptrend above the $ 50.00 level and the 100-week simple moving average (red). Recently, the price broke a major hurdle near the $ 51.00 and settled above it.

It is now trading above the 76.4% Fib retracement level of the downward move from the $ 65.65 high to $ 3.62 low. The price is showing positive signs above $ 52.00 and the 200-week simple moving average (green).

It seems like the price is likely to continue higher above $ 55.00 and $ 56.50. The next major resistance is near the $ 58.00 level. On the downside, the previous major resistance near $ 51.00 is likely to act as a strong support.

Looking at EUR/USD, there was no recovery and the pair extended its decline below 1.2060. GBP/USD is also struggling and it could correct lower below 1.3600.

Economic Releases to Watch Today

  • Germany’s Services PMI for Jan 2021 – Forecast 46.8, versus 46.8 previous.
  • Euro Zone Services PMI for Jan 2021 – Forecast 45.0, versus 45.0 previous.
  • UK Services PMI for Jan 2021 – Forecast 38.8, versus 38.8 previous.
  • Euro Zone CPI for Jan 2021 (YoY) (Prelim) – Forecast +0.5%, versus -0.3% previous.
  • US Services PMI for Jan 2021 – Forecast 57.5, versus 57.5 previous.
  • US ISM Services PMI for Jan 2021 – Forecast 56.8, versus 57.7 previous.
  • US ADP Employment Change for Jan 2021 – Forecast 45K, versus -123K previous.