XTI/USD Technical Analysis | Forexlive
On the daily chart below, we can
see that after breaking out of the 3-month-old range, the XTI/USD sellers extended the
selloff before finding buyers at the $65 level. The price is now approaching
the old support than now should turn into resistance, and we may see a classic “break
and retest” pattern which implies that another selloff may come soon.
The recent selloff was caused by
the fears of another banking crisis that could tip the economy into a deep
recession. These fears may have receded as central banks took emergency actions
to calm the markets, but we may see secondary effects in the real economy via
tighter financial conditions which would slow activity and demand even more and
lead to lower oil prices.
On the 4 hour chart below, we can
see that the moving
averages are now crossed to the upside as we have a short term uptrend. The
resistance zone for the sellers will be between the $72 level and the 50% Fibonacci
retracement level. That’s also where the daily red long period
moving average will be offering resistance.
During these 3 months the 4 hour
moving averages were quite reliable in signalling a change in trend, so the
conservative sellers may want to wait until they cross again to the downside
before taking new positions.
On the 1 hour chart below, we can
see that in case the price couldn’t reach the resistance and the market turns
before that, the level to watch would be the support at $69.83. If the price
breaks below that and the moving averages turn south, then the sellers may
start to pile in.
The buyers, on the other hand,
should use this support to target the resistance zone at $72. They will need a
clear break above the $72 resistance supported by some fundamental catalyst to
start another rally towards the previous range top at $82.