WTI oil fell $1 on Tuesday after President Trump threatened to keep trade deal with China until late 2020.

In addition, US threats of tariffs against France, Brazil and Argentina, further soured the sentiment and increased concerns about slowdown in global demand for energies that would further depress oil prices.

Limited recovery on Monday, following last Friday’s 5% drop and today’s action holding in red, increases risk of extension of pullback from recent tops at $58.67/62.

Today’s repeated close below broken Fibo support at $55.71 (38.2% of $50.91/$58.67) would add to negative outlook for test of key supports at $54.97/91 (trendline support / daily cloud base) and 20 Nov trough ($54.82).

Daily studies turned to bearish setup and support negative scenario, as OPEC meets on Thursday and fears in the market rise that the cartel won’t be able to reach consensus for stronger production cut.

American Petroleum Institute (API) is due to release its weekly crude stocks report later today and official government’s crude inventories report will be released on Wednesday, with both releases expected to provide fresh direction signals.

Res: 56.39; 56.64; 56.84; 57.02
Sup: 55.32; 55.00; 54.79; 54.08


The information contained in this document was obtained from sources believed to be reliable, but its accuracy or completeness cannot be guaranteed. Any opinions expressed herein are in good faith, but are subject to change without notice. No liability accepted whatsoever for any direct or consequential loss arising from the use of this document.

Analysis feed

Latest Forex Analysis

Editors’ Picks

GBP/USD hits new 7-month highs as Tories hold the lead

GBP/USD has hit new seven-month highs closer to 1.32 as weekend polls have reaffirmed a solid lead for PM Johnson's Conservatives. Cable dropped on Friday amid upbeat US data.


EUR/USD steadying above 1.1050 amid upbeat German export data

EUR/USD is trading above 1.1050, attempting a recovery after Germany reported an increase in exports in October. EUR/UDS dropped sharply on Friday amid upbeat US Non-Farm Payrolls and weak German industrial output. 


Forex Today: US-Sino trade tensions prevail, Boris closer to victory, EUR/USD licking its wounds

Trade talks: President Donald Trump has called on the World Bank to stop lending to China, a move that may aggravate tensions, with only six days to go until Washington is set to slap new tariffs on Beijing. Negotiations continue.

Read more

Gold: Sidelined after biggest daily decline in four weeks

Gold is lacking a clear directional bias in Asia, having registered its biggest single-day decline in four weeks on Friday. China's data may embolden President Trump to take more aggressive measures. 

Gold News

USD/JPY in search of a firm direction, stuck in a range above mid-108.00s

USD/JPY was seen oscillating in a narrow band and consolidated last week’s losses. US-China trade uncertainties continued underpinning the JPY’s safe-haven status. Investors now seemed reluctant ahead of the latest FOMC monetary policy update.


Forex Majors