Crude Oil Price Could Gain Above $70 Vs US Dollar

• - Crude oil price is gaining momentum above the $68.00 resistance against the US Dollar.
• - There was a break above two bearish trend lines with resistance at $67.50 and $67.75 on the hourly chart.
• - Recently in the US, the API Weekly Crude Oil Stock report for the week ending September 7, 2018 was released.
• - As per the report, the US crude oil inventories declined by around 8.636 million barrels.

API Weekly Crude Oil Stock

Recently in the US, the API Weekly Crude Oil Stock report for the week ending September 7, 2018 was released. The market was positioned for a decline in the US crude oil inventories by around 5 million barrels.

However, the actual result was above the market forecast as the US crude oil inventories declined by around 8.636 million barrels to 395.9 million barrels.

The price gained upside momentum after the release and it moved above the $68.00 and $69.00 resistance levels.

Oil Price Technical Analysis

There was a decent support base formed near the $66.70 level by crude oil price against the US Dollar. The price partially formed a double bottom pattern near $66.70 and started an upside move above the $67.00 resistance.

The price climbed above the $68.00 resistance and also settled above the 100 hourly simple moving average. Moreover, there was a break above two bearish trend lines with resistance at $67.50 and $67.75 on the hourly chart.

Furthermore, there was a break above the 61.8% Fib retracement level of the last decline from the $71.13 high to $66.70 low. It opened the doors for more gains and the price moved above the $69.20, $69.40 and $69.50 resistance levels.

The next resistance for buyers is near the $70.00 level and the 76.4% Fib retracement level of the last decline from the $71.13 high to $66.70 low. Once there is a break above the $70.00, $70.08 and $70.20 levels, the price is likely to surge towards the $71.00 level. If buyers remain in control, the price may even test the $71.13 high in the near term.

Originally published at ForexGator.com.