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Crude Oil Prices Retreat from 3-Month Highs

Crude oil prices declined in Friday’s trading. WTI crude oil CFDs opened at $61.13 and steadily traded lower to $60.06. By the end of the New York session, the commodity had settled at $60.39.

Positive US Data Inspires Profit-Taking

On Friday, it would seem that market participants squared their positions ahead of the holidays. After all, crude oil prices rose for six consecutive days since December 12. Positive data from the US also strengthened the dollar and contributed to the slide in the commodity.

The final GDP reading and personal spending for the third quarter of 2019 came in as expected. They printed at 1.2% and 0.4%, respectively. The core PCE price report also met expectations at 0.1%.

Meanwhile, the personal income report showed that consumers received more income in November by 0.5% than the 0.3% estimate by analysts.

US Data Due Today Could Dictate Crude Oil Prices

The Durable Goods Orders report is due today at 1:30 pm GMT. It is expected to print at 0.2% for November from its 0.5% reading in October. Meanwhile, core durable goods orders which does not include transportation, is estimated to post a 1.5% growth rate.

The new home sales report for November will also be released at 3:00 pm GMT. It is seen to come in at 730,000.

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Crude Oil Price Outlook

The weekly time frame shows that a shooting star has formed at the 100 SMA. Meanwhile, a closer look at the daily time frame, reveals that crude oil prices stopped short of resistance at the falling trend line (from connecting the highs of April 24 and September 16).

If sellers dominate this week’s trading, we could see the commodity fall to the confluence of support around $57.65. For one, the 200 SMA seems to align with this price. It also coincides with the rising trend line when you connect the higher lows of October 3, October 10, November 20, and December 2. Lastly, the price coincides with the 61.8% Fib level when you draw the Fibonacci retracement level from the low of November 29 to the high of December 19.

However, if there are enough buyers to push crude oil prices above last week’s highs at $61.43, the commodity could be on its way to its September 16 highs at $63.29.