Crude Oil Price Could Decline Further Vs US Dollar
- – Crude oil price started a downside move after trading above the $69.00 level against the US Dollar.
- – The price is currently attempting a close below a major bullish trend line at $67.60 on the hourly chart.
- – Recently in the US, the API Weekly Crude Oil Stock report for the week ending April 20, 2018 was released.
- – As per the report, there was a rise in the crude oil inventories by 1.099 million barrels.
API Weekly Crude Oil Stock
Recently in the US, the API Weekly Crude Oil Stock report for the week ending April 20, 2018 was released. The market was positioned for a decline in the crude oil inventories by roughly 0.5 million barrels.
However, the actual result was on the negative side as there was a rise in the crude oil inventories by 1.099 million barrels. Looking at the gasoline stockpiles there was a decline of 2.7 million barrels and inventories of distillates fell 1.9 million barrels.
Overall, crude oil price remains at a risk of more losses if fails to hold an important support area near $67.60-50.
Oil Price Technical Analysis
There were decent gains in crude oil price this past week above the $68.00 level against the US Dollar. The price traded higher and broke a major resistance at $69.00 to climb towards the $69.30-40 zone. Later, the price failed to hold gains above $69.00 and started a downside correction.
The price declined and broke the $69.00 and $68.50 support levels. It settled below the $68.00 level and the 100 hourly simple moving average. At the moment, the price is attempting a close below a major bullish trend line at $67.60 on the hourly chart.
Once there is a proper close below the trend line and $67.50, there could be more losses in the near term. The next support on the downside could be $67.00, followed by $66.20.
On the other hand, if there is an upside correction, buyers could face resistance near the 38.2% Fib retracement level of the last drop from the $69.29 high to $67.42 low. The most important resistance is near $68.40 and the 100 hourly SMA.
Also published on Medium.
