Crude Oil fell below the
key $83 support zone last week as the geopolitical risk faded. In fact, Israel
eventually retaliated against Iran last Friday, but the attack was limited, and
Iran downplayed the airstrikes leading to a general de-escalation. On the macro
side, higher yields and the retreat in rate cuts expectations led to some
weakening in demand, which was also seen yesterday in the US PMIs commentary. Looking forward, if we start to
get more weak data, the market might continue to fall with the next target
being the $78 price region.
WTI Crude Oil Technical
Analysis – Daily Timeframe
On the daily chart, we can see that Crude Oil broke
below the key $83 support zone and
the trendline and
pulled back for a retest. This is where we can expect the sellers to step in
with a defined risk above the red 21 moving average to
position for a drop into the next major trendline around the $78 level. The
buyers, on the other hand, will want to see the price rising back above the
trendline to position for a rally into the $90 level.
WTI Crude Oil Technical
Analysis – 4 hour Timeframe
On the 4 hour chart, we can see that we have a
downward trendline now which will act as resistance on the way up. This will
add another layer of confluence for the
sellers to pile in around these levels and position for a drop into the major
trendline. The buyers, on the other hand, will want to see the price breaking
above it to start targeting new highs.
WTI Crude Oil Technical
Analysis – 1 hour Timeframe
On the 1 hour chart, we can see that if we
were to fall from these levels, the sellers will need to break below the strong
$81 support to increase the bearish bets into new lows. The buyers, on the
other hand, will likely step in at the support again to try another breakout to
the upside.
Upcoming Events
Tomorrow we will see the latest US Jobless Claims
figures, while on Friday we conclude the week with the US PCE report.
This article was written by FL Contributors at www.forexlive.com.
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