WTI Oil Outlook: Oil stands at the front foot on possible production cut increase/fall in US oil inventories

Slobodan Drvenica Windsor Brokers

US CRUDE OIL

WTI oil stands at the front foot on Wednesday, following Tuesday's bounce that completed hammer reversal pattern. Draw of US crude inventories (API report showed 0.9 mln bls draw vs 2.5 mln bls build f/c) and signs from OPEC for stronger cut of production (OPEC announced 800,000 bpd cut), with the action being led by Saudi Arabia, add to positive near-term outlook and boosts price action. Focus turns towards EIA crude inventories report, due later today (2.6 mln bls build f/c vs 1.2 mln bls build previous week), with surprise on lower than expected build or draw in oil inventories to further boost oil prices. Fresh bulls eye pivotal barrier at $54.01 (Fibo 61.8% of $55.73/$51.23, craked on Tuesday) clear break of which is needed to confirm reversal and open way towards key barriers at $55.15/55 ( daily cloud top / Fibo 38.2% of $76.88/$42.36 fall). Rising 30SMA tracks the advance for over one month and marks solid support at $52.45, which is expected to contain dips. Only return and close below $50.99/62 (55SMA / Fibo 38.2% of $42.36/$55.73) would neutralize bulls and signal further weakness.

Res: 54.01; 54.67; 55.15; 55.55
Sup: 53.31; 52.95; 52.45; 51.78

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 falls to near 1.1600 due to persistent bearish bias

EUR/USD depreciates after registering modest gains in the previous session, trading around 1.1610 during the Asian hours on Thursday. The technical analysis of the daily chart suggests a persistent bearish bias as the EUR/USD pair remains within the descending channel pattern.

GBP/USD underperforms as UK faces stagflation risks amid Middle East war

The Pound Sterling trades lower against its major currency peers, is down 0.22% around 1.3340 against the US Dollar, during the Asian trade on Thursday. The British currency faces selling pressures amid fears that the United Kingdom economy could face stagflation risks due to higher energy prices, a situation in which inflation accelerates with economic growth and employment conditions remaining stagnant.

Gold climbs near $5,200 as Iran war fuels safe-haven demand

Gold price extends its gains for the second successive session on Thursday as traders seek safety amid the ongoing war in the Middle East. US and Israeli strikes across Iranian territory and widespread Iranian missile and drone retaliation across the Middle East, including attacks on regional targets and military sites, prolong the crisis and its impact.

Top Crypto Gainers: Decred, Zcash, and Dogecoin lead recovery as Bitcoin crosses $72,000

Bitcoin trades above $72,500 at press time on Thursday, holding its 6% gain from the previous day, contributing to a broader market recovery. The total cryptocurrency market capitalization stands at over $2.43 trillion as the broader market sentiment improves significantly.

First Venezuela, now Iran: The US-China energy war escalates

At first glance, the latest escalation involving the United States with both Iran and Venezuela looks like another chapter in a long-running geopolitical story. But viewed through a broader strategic lens, something else may be unfolding: Energy.

Cardano Price Analysis: Approaches key trendline amid bearish sentiment

Cardano (ADA) price is approaching its descending trendline around $0.28 at the time of writing, set to shape the next directional move. The derivatives metrics paint a bearish picture, with ADA’s Open Interest continuing to fall and short bets rising among traders.