Oil Price Approaches April High

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The price of oil may further retrace the decline from the April high ($71.16) as it continues to carve a series of higher highs and lows, and a move above 70 in the Relative Strength Index (RSI) is likely to be accompanied by a further advance in crude like the price action from earlier this year.

In turn, a break/close above the $70.30 (61.8% Fibonacci retracement) to $71.90 (38.2% Fibonacci retracement) zone may push the price of oil toward the February high ($73.84), with the next area of interest coming in around $76.00 (78.6% Fibonacci extension) to $77.20 (50% Fibonacci retracement).

At the same time, lack of momentum to test the April high ($71.16) may keep the RSI out of overbought territory but need a move below the $64.20 (61.8% Fibonacci retracement) to bring the monthly low ($61.06) on the radar.

--- Written by David Song, Senior Strategist at FOREX.com

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