WTI Oil maintains fresh bullish sentiment on weak dollar; remarks from Saudi Arabia

Slobodan Drvenica Windsor Brokers

US CRUDE OIL

WTI holds firm tone on Thursday and extends higher after strong rally on Wednesday when crude price was up 3%.

Fresh rally was sparked by EIA weekly crude stocks report which showed lower than expected build of crude inventories last week (1.84 vs forecasted build of 2.82 million barrels) and comments from Saudi Arabia, reaffirming its commitment to continue with reducing production in order to stabilize oil market, saying that would rather see an undersupplied market than end deal with OPEC and other major oil producers to reduce output.

Weaker dollar also supports oil price which bounced strongly from $58.06 zone, where a higher base has formed.

Strong recovery rally emerged above rising daily Ichimoku cloud after being stuck in the cloud for a couple of sessions and dented important barrier at $61.34 (Fibo 38.2% of $66.28/$58.06 pullback, reinforced by falling 10SMA.

Oil price started to regain traction after being under strong pressure in past two weeks, with extension and close above $61.34 pivot needed to maintain fresh bullish sentiment and generate positive signal for extension of recovery leg from $58.06 base.

Bullish scenario on repeated close above daily cloud top and firm break above $61.34 would open way for extension towards target at $62.35 (daily Kijun-sen).

Cloud top offers good support at $60.64 and is expected to contain and keep fresh bulls intact.

Res: 61.34; 61.53; 61.72; 62.35
Sup: 60.64; 60.00; 59.25; 59.00

Interested in Oil technicals? Check out the key levels

1. R3 61.15
2. R2 60.98
3. R1 60.89
PP 60.72
1. S1 60.63
2. S2 60.46
3. S3 60.37

Author

Slobodan Drvenica

Windsor Brokers

Industry veteran with over 22 years’ experience, Slobodan Drvenica joined Windsor Brokers in 1995 when he was an active trader for more than 10 years, managing the trading desk and own account departments.

EUR/USD trims gains, back below 1.1800

EUR/USD now loses some upside momentum, returning to the area below the 1.1800 support as the Greenback manages to regain some composure following the SCOTUS-led pullback earlier in the session.

GBP/USD off highs, recedes to the sub-1.3500 area

Following earlier highs north of 1.3500 the figure, GBP/USD now faces some renewed downside pressure, revisiting the 1.3490 zone as the US Dollar manages to regain some upside impulse in the latter part of the NA session on Friday.

Gold climbs to weekly tops, approaches $5,100/oz

Gold keeps the bid tone well in place at the end of the week, now hitting fresh weekly highs and retargeting the key $5,100 mark per troy ounce. The move higher in the yellow metal comes in response to ongoing geopolitical tensions in the Middle East and modest losses in the US Dollar.