The price of crude oil fell into bear territory yesterday and continued the lower momentum overnight. Will the XTIUSD pair continue to decline? Find out with the following technical analysis.
November 9, OctaFX – A security is said to be in bear territory when its price falls by more than 20% from its previous high.
The reason for the decline was mostly because of the increased supplies from OPEC and the United States. In a recent statement, OPEC secretary general said that OPEC members were pumping as much crude as they can.
In the United States, recent data from the EIA has shown that inventories were on the rise.
Crude Oil Price Technical Analysis
The price of crude oil continued making the lower lows, reaching an intraday low of $60.30. This was the lowest level since March this year. The 30-day and 15-day EMA indicators on the four-hour chart show that the pair will continue to decline.
At the same time, the RSI is close to the oversold level of 30, which is an indication that it has more room to go down. It is therefore likely that the pair will continue to move down, potentially to the $55 level.
This article was provided by OctaFX. It should NOT substitute for professional marketing consulting. Forex margin trading involves substantial risks. Forex margin trading exposes participants to risks including, but not limited to, changes in political conditions, economic factors, and other factors. All of which may substantially affect the price or availability of one or more foreign currencies.