WTI OIL Outlook: WTI price is inflated by market optimism but remains congested between 200DMA and daily cloud top

Slobodan Drvenica Windsor Brokers

US CRUDE OIL

WTI oil price stands at the front foot on Friday and accelerated above $57 mark on weaker dollar after US data.
Optimism that the OPEC+ group will maintain its agreement for oil supply cut and fresh hopes for US/China trade deal, keep the oil prices inflated.
Daily chart shows near-term price action congested between 200DMA ($57.44), following several failures to close above cracked barrier and daily cloud top ($56.80), where downticks repeatedly failed to register close below.
Short-term uptrend from $50.91 (3 Oct spike low) remains intact, as near-term action is underpinned by thick daily cloud and rising daily bullish momentum, but bulls need close above 200DMA to generate positive signal for extension towards strong barrier at $58.46 (Fibo 61.8% of $63.12/$50.91/weekly cloud base). Caution on eventual close below daily cloud top as this would generate initial bearish signal, however, stronger reversal signal could be expected on break and close below pivots at $55.19/$54.97 (Fibo 38.2% of $50.91/$57.83 / daily cloud base).

Res: 57.21; 57.44; 57.83; 58.46
Sup: 56.80; 56.24; 55.75; 55.57

Interested in Oil technicals? Check out the key levels

1. R3 58.82
2. R2 58.34
3. R1 57.67
PP 57.19
1. S1 56.52
2. S2 56.04
3. S3 55.37

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 weakens toward 1.1600 as firm US data revives the US Dollar

The EUR/USD edged lower on Thursday, down some 0.21% as market sentiment remains risk averse due to the ongoing conflict in the Middle East. This and solid US economic data pushed the pair lower towards the 1.1600 figure ahead of Friday’s session.

GBP/USD drifts lower heading into NFP range

GBP/USD edged lower by 0.2% on Thursday, settling close to 1.3350 in a strained trading session that kept the pair pinned near three-month lows. Price briefly recovered earlier in the day on reports that Iran had indirectly signaled openness to talks with the CIA, but the bounce faded as Israeli officials reportedly advised Washington to disregard the overture.

Gold slumps below $5,100 as US Dollar gains

Gold price tumbles to near $5,085 during the early Asian session on Friday. The precious metal loses ground amid a stronger US Dollar. The US employment report for February will take center stage later on Friday.

NYSE parent Intercontinental Exchange partners with OKX, invests at a $25B valuation

OKX announced an investment from Intercontinental Exchange, raising its valuation to $25 billion, alongside a partnership to expand regulated crypto futures and tokenized equity offerings globally.

Two PMIs, two Chinas

China’s economic data are often treated with a degree of caution by global investors. The challenge is not necessarily that the numbers are incorrect, but that they can describe very different parts of a vast and complex economy. Nowhere is that more evident than in China’s PMIs.

Ripple tests recovery strength amid steady ETF inflows, growing retail interest

Ripple (XRP) continues to demonstrate notable resilience as the cryptocurrency market navigates the persistent war in the Middle East after the United States (US) and Israel attacked Iran on Saturday.