US CRUDE OIL
Near-term outlook remains negative and sees risk of retesting low at $58.06 (09 Feb) after recovery attempts showed strong rejection at $60.81 on Monday (capped by 55SMA) and Tuesday’s action closed in red.
Negative tone was boosted by stronger than expected build in weekly crude inventories (stocks rose by 3.94 million barrels vs forecasted build of 2.80 million barrels and last week’s draw of 1.05 million barrels) API report showed on Tuesday.
Focus turns towards EIA US crude stocks report , due later today, which is forecasted to show build of 2.82 million barrels compared to 1.89 million barrels build last week.
Fears that US crude stocks may rise more than expected keeps oil price under pressure, along with persisting concerns about soaring US oil output which offsets OPEC-led efforts to tighten oil market by reducing global production.
Break below strong supports at $58.06 (09 Feb low) and $57.68 (rising 100SMA) would spark fresh extension of steep bear-leg from $66.28 high towards targets at $55.81 and $54.80 (07 Dec / 14 Nov troughs).
Alternative scenario requires lift above initial $60.00 barrier and $60.51 (daily cloud top) to sideline immediate downside threats.
Res: 59.29; 60.00; 60.51; 60.91
Sup: 58.58; 58.38; 58.06; 57.68
Interested in Oil technicals? Check out the key levels
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.
Recommended Content
Editors’ Picks
AUD/USD rises to two-day high ahead of Aussie CPI
The Aussie Dollar recorded back-to-back positive days against the US Dollar and climbed more than 0.59% on Tuesday, as the US April S&P PMIs were weaker than expected. That spurred speculations that the Federal Reserve could put rate cuts back on the table. The AUD/USD trades at 0.6488 as Wednesday’s Asian session begins.
EUR/USD now refocuses on the 200-day SMA
EUR/USD extended its positive momentum and rose above the 1.0700 yardstick, driven by the intense PMI-led retracement in the US Dollar as well as a prevailing risk-friendly environment in the FX universe.
Gold price cautious despite weaker US Dollar and falling US yields
Gold retreats modestly after failing to sustain gains despite fall in US Treasury yields, weaker US Dollar. XAU/USD struggles to capitalize following release of weaker-than-expected S&P Global PMIs, fueling speculation about potential Fed rate cuts.
Ethereum continues hinting at rally following reduced long liquidations
Ethereum has continued showing signs of a potential rally on Tuesday as most coins in the crypto market are also posting gains. This comes amid speculation of a potential decline following FTX ETH sales and normalizing ETH risk reversals.
Australia CPI Preview: Inflation set to remain above target as hopes of early interest-rate cuts fade
An Australian inflation update takes the spotlight this week ahead of critical United States macroeconomic data. The Australian Bureau of Statistics will release two different inflation gauges on Wednesday.