WTI oil futures gently move up, key resistance ahead

WTI oil futures (August delivery) have been gently crawling up over the past week following the close below the 200-day simple moving average (SMA) and the drop to a six-month low of $87.00/barrel.

The price is currently looking to return above the $92.19 constraining zone, which was the lower boundary of the previous range area, but this will not be enough to boost buying confidence. The bulls will also need to climb above the 20- and 200-day SMAs, which are trying to set a bearish cross near the 23.6% Fibonacci retracement of the latest downtrend around $95.00. The descending trendline drawn from the $120.87 peak could further cement that wall, blocking the way towards the 38.2% Fibonacci of $99.94 and the $102.00 barrier, where the 50-day SMA is currently residing.

The positive momentum in the RSI and the MACD, as well as the upside reversal in the stochastics is reflecting some improvement in market sentiment, though as long as the two former remain in the bearish area, downside corrections are possible. In this case, the price could diminish back to the $87.00 low if the $92.19 zone rejects any additional bullish movements. Lower, the bears will aim to downgrade the long-term outlook back to neutral below $85.00. If they succeed, the sell-off could pick up steam towards the $80.85 – $79.00 region.

In brief, WTI oil futures may attempt to extend their recovery in the coming sessions, though only a decisive close above $95.00 could attract fresh buying interest. 

WTI

AUD/USD spikes after soft US CPI print

AUDUSD had been battling with its 50-day simple moving average (SMA) after it rebounded from the 26-month low of 0.6680. However, in the previous session the pair experienced a huge jump, closing decisively above its 50-day SMA and coming to a halt at the upper Bollinger band.

The short-term oscillators are reflecting the intensifying positive momentum. Specifically, the MACD histogram has jumped above zero and its red signal line, while the RSI is flatlining above its 50-neutral threshold.

Should buying pressures persist, the recent peak of 0.7110 could be the initial resistance barrier. Piercing through this region, the bulls could target the 200-day SMA, currently at 0.7150. Violating this zone, the spotlight might turn to the June high of 0.7282 before 0.7458 appears on the radar.

On the flipside, if the pair reverses downwards, the 0.6946 hurdle may act as the first line of defence. Should that floor collapse, the recent low of 0.6868 might come under examination. Failing to halt there, the price could descend towards the May low of 0.6828 or lower to challenge the 0.6760 region.

Overall, AUDUSD is showing an appetite for some recovery. Therefore, a break above 0.7282 is needed to alter its medium-term outlook to bullish.

AUDUSD

Forex trading and trading in other leveraged products involves a significant level of risk and is not suitable for all investors.

Feed news Join Telegram

Recommended Content


Recommended Content

Editors’ Picks

AUD/USD: Risk-aversion, softer Aussie inflation directs bears to sub-0.6500 zone ahead of US GDP

AUD/USD: Risk-aversion, softer Aussie inflation directs bears to sub-0.6500 zone ahead of US GDP

AUD/USD pares intraday losses around 0.6490, recently bouncing off daily lows, as traders await fresh clues to defend the latest pullback moves. That said, downbeat prints of Australia’s monthly Consumer Price Index (CPI) joined the risk-off mood to weigh on the Aussie pair during early Thursday.

AUD/USD News

EUR/USD drops back below 0.9700 as yields rebound ahead of US GDP, German inflation

EUR/USD drops back below 0.9700 as yields rebound ahead of US GDP, German inflation

EUR/USD sellers are up and roaring as sour sentiment joins firmer yields to renew the downside during early Thursday, after a day full of surprises and positive performance. Germany’s HICP may not impress pair buyers unless US GDP disappoints.

EUR/USD News

Gold sees cushion around $1,650 after a corrective move, US GDP buzz

Gold sees cushion around $1,650 after a corrective move, US GDP buzz

Gold price is experiencing a healthy correction in the Tokyo session after witnessing a bumper rally. The precious metal is expected to find significant bids around the immediate cushion of $1,650.00 as the downside bias is not backed by momentum. 

Gold News

Cardano price remains still after Vasil hard fork, what’s next?

Cardano price remains still after Vasil hard fork, what’s next?

Cardano price has remained neutral despite the blockchain undergoing a massive upgrade this week via the Vasil hard fork. This update is multi-faceted and brings a host of improvements to the so-called “Ethereum-killer”, including transaction throughput.

Read more

A week after Japanese yen intervention

A week after Japanese yen intervention

Last Thursday was an incredibly volatile trading session for the USD/JPY. This volatility was largely caused by the Bank of Japan's (BoJ) intervention in the currency markets to defend its depreciating currency, the Japanese Yen. Last week’s move was the first time since 1998 that the BoJ had intervened.

Read more

Majors

Cryptocurrencies

Signatures