Chart of the week: Oil prices spiking and intent on 2019 highs

Bulls in control due to the conflict in the Middle East between Iran and the US.
The price action is bullish in the short term charts following a 50% mean reversion of a breakout from the 200-hour moving average.
The daily outlook targets the 2019 highs initially and tougher resistance higher up through 69.60.

Ross J Burland FXStreet

Following the escalations of tensions between the US and Iran and the US drone strike on Qassem Soleimani, head of Iran's elite Quds, oil prices are moving higher and are set to target the 2019 highs ahead of key resistance.

WTI daily chart

The price of oil surged to a fresh eight-month high last week.
Bulls can target a break of the 61.8%% Fibonacci retracement of the October to Dec lows.
Price is set to move higher towards 2019 highs at 66.58.
The 78.6% Fib has a confluence of the 200-month moving average through the 69.60s.
76.88 Oct 2018 highs has a confluence with Sep 2011 lows/summer 2006 highs which could prove to be a tough resistance.

WTI hourly chart

The price is a constructive bid holding above 21-hour moving average and trendline support.
RSI is below overbought territory although holds above 50 as price is supported at a 50% mean reversion.
Support comes at a prior resistance level with the confluence of a 50% Fibonacci retracement of the breakout at the 200-hour moving average.

Author

Ross J Burland

FXStreet

Ross J Burland, born in England, UK, is a sportsman at heart. He played Rugby and Judo for his county, Kent and the South East of England Rugby team.

EUR/USD remains below 1.1850 after US data

EUR/USD struggles to gain traction and trades in a narrow range below 1.1850 on Wednesday. The US Dollar stays resilient against its rivals following the better-than-expected Durable Goods Orders and housing data, limiting the pair's upside ahead of FOMC Minutes.

GBP/USD stays in narrow channel above 1.3550 ahead of FOMC Minutes

GBP/USD holds its ground following Tuesday's slide and moves sideways above 1.3550 midweek. Although the data from the UK confirmed that inflation cooled in January, the positive shift seen in market mood helps the pair keep its footing as investors wait for the Fed to publish the minnutes of the January policy meeting.

Gold regains some shine, retargets $5,000 ahead of FOMC Minutes

Gold gathers fresh upside traction on Wednesday, leaving part of the weakness seen at the beginning of the week and refocusing its attention to the key $5,000 mark per troy ounce, all ahead of the release of the FOMC Minutes and despite the modest uptick in the US Dollar.

Pi Network rally defies market pressure ahead of its first anniversary

Pi Network is trading above $0.1900 at press time on Wednesday, extending the weekly gains by nearly 8% so far. The steady recovery is supported by a short-term pause in mainnet migration, which reduces pressure on the PI token supply for Centralized Exchanges. The technical outlook focuses on the $0.1919 resistance as bullish momentum increases.

Mixed UK inflation data no gamechanger for the Bank of England

Food inflation plunged in January, but service sector price pressure is proving stickier. We continue to expect Bank of England rate cuts in March and June. The latest UK inflation read is a mixed bag for the Bank of England, but we doubt it drastically changes the odds of a March rate cut.

Top 3 Price Prediction: Bitcoin, Ethereum, and Ripple face downside risk as bears regain control

Bitcoin, Ethereum, and Ripple remain under pressure on Wednesday, with the broader trend still sideways. BTC is edging below $68,000, nearing the lower consolidating boundary, while ETH and XRP also declined slightly, approaching their key supports.