- Crude oil price started a recovery after trading towards the $43.60 support against the US Dollar.
- There are two bearish trend lines with resistances as $44.55 and $44.80 forming on the hourly chart.
- Recently in the US, the Consumer Credit change for May 2017 was released by the Board of Governors of the Federal Reserve.
- The outcome was positive, as the change was $18.41B, more than the forecast of $12.70B.
Oil Price Technical Analysis
After trading as high as $47.10 Crude oil price faced offers and moved down against the US Dollar. It traded below a few key support levels like $46.00 and $45.00.
A new weekly low was formed at $43.59 from where a minor recovery was initiated.
The price has moved above the 23.6% Fib retracement level of the last decline from the $46.42 high to $43.59 low.
Oil Price Hourly Chart
However, it is facing a major hurdle near $44.65-80. The stated levels acted as a support zone, and now preventing gains above $44.80.
There are also two bearish trend lines formed with resistances as $44.55 and $44.80 forming on the hourly chart.
These trend lines also coincide with the 38.2% Fib retracement level of the last decline from the $46.42 high to $43.59 low. So, it won’t be easy for buyers to clear the $44.80 resistance and take the price back above $45.00.
On the downside, an initial support is at $44.00, and if the price continues to decline, the last swing low of $43.60 could be tested again.
US Consumer Credit Change
Recently in the US, the Consumer Credit change for May 2017 was released by the Board of Governors of the Federal Reserve. The market was expecting the change to be $12.70B compared with the last $8.20B.
However, the actual result was positive, as the change was $18.41B, more than the forecast of $12.70B. Moreover, the last reading was revised up from $8.20B to $12.93B.
Later today, the NFIB Business Optimism Index for June 2017 will be released, which is lined up for a minor decline from 104.5 to 104.4. Later, the API Weekly Crude Oil Stock report will be published, which might impact oil prices.
Overall, we need to keep a close eye on the $44.80 resistance. Only a close above $45.00 might ignite further upsides/corrections in the near term.