WTI outlook: Bears are taking a breather after the latest acceleration

Slobodan Drvenica Windsor Brokers

WTI

Bears are taking a breather after the latest bearish acceleration in past three days (oil price was down 5%) deflated by easing tensions in the Middle East and rise in US crude stocks (API report).

Oversold daily studies and Tenkan-Kijun-sen turned sideways, suggesting that bears are running out of steam, which may prompt traders for a partial profit-taking.

The notion is supported by the fact that oil price has repeatedly failed to register a daily close below June 4 low ($72.46).

This marks solid support, and another bounce may occur, following a triple failure in early August.

Upticks face initial resistances at $74.00/33, followed by $75.00/44, with $76.00 zone (converged 10/20DMA’s / 4-hr Ichimoku cloud base) expected to cap and mark a healthy correction.

Eventual close below $72.46 pivot and $71.66 (Aug 5 spike low) to unmask psychological $70 support.

Res: 74.00; 74.33; 75.00; 75.44.
Sup: 72.46; 72.19; 71.66; 71.00.

Interested in WTI technicals? Check out the key levels

1. R3 75.82
2. R2 75.04
3. R1 74.03
PP 73.25
1. S1 72.23
2. S2 71.45
3. S3 70.44

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 flirts with daily highs, retargets 1.1900

EUR/USD regains upside traction, returning to the 1.1880 zone and refocusing its attention to the key 1.1900 barrier. The pair’s slight gains comes against the backdrop of a humble decline in the US Dollar as investors continue to assess the latest US CPI readings and the potential Fed’s rate path.

GBP/USD remains well bid around 1.3650

GBP/USD maintains its upside momentum in place, hovering around daily highs near 1.3650 and setting aside part of the recent three-day drop. Cable’s improved sentiment comes on the back of the Greenback’s irresolute price action, while recent hawkish comments from the BoE’s Pill also collaborate with the uptick.

Gold holds above $5,000 as bears seem hesitant amid Fed rate cut bets

Gold edges lower at the start of a new week, though it defends the $5,000 psychological mark through the Asian session. The underlying bullish sentiment is seen acting as a headwind for the bullion. However, bets for more rate cuts by the Fed, bolstered by Friday's softer US CPI, keep the US Dollar bulls on the defensive and continue to support the non-yielding yellow metal as the focus now shifts to FOMC Minutes on Wednesday.

Week ahead: Data blitz, Fed Minutes and RBNZ decision in the spotlight

The US jobs report for January, which was delayed slightly, didn’t do the dovish Fed bets any favours, as expectations of a soft print did not materialize, confounding the raft of weak job indicators seen in the prior week.

Global inflation watch: Signs of cooling services inflation

Realized inflation landed close to expectations in January, as negative base effects weighed on the annual rates. Remaining sticky inflation is largely explained by services, while tariff-driven goods inflation remains limited even in the US.

Ripple Price Forecast: XRP potential bottom could be in sight

Ripple edges up above the intraday low of $1.35 at the time of writing on Friday amid mixed price actions across the crypto market. The remittance token failed to hold support at $1.40 the previous day, reflecting risk-off sentiment amid a decline in retail and institutional sentiment.