WTI: A phase of upside consolidation around $ 51 mark

Dhwani Mehta FXStreet

After having reached fresh monthly tops at $ 51.25 earlier in Asia, oil futures on NYMEX have entered a phase of consolidation, as the bulls take a breather and gather pace for the next push higher.

The rally in oil regained momentum last week and now extends its bullish run into a fourth day today, as markets cheer reports of the OPEC and non-OPEC producers considering to deepen and extend an OPEC-led supply cut in a bid to prop up prices.

Reuters reported sources, noting that the option of deepening the production cut was also being discussed ahead of a meeting of OPEC and its allies in Vienna on May 25.

Focus now remains on the developments surrounding the US politics, with Comey’s testimony expected to be one of the key events this week, which could impact the USD dynamics, eventually influencing the USD-sensitive oil. More so, the US crude supplies data will be also closely eyed ahead of the OPEC meeting this Thursday.

WTI technical levels

A break above $ 51.50 (psychological levels) could yield a test of $ 52.65 (May 19 high) beyond which $ 53 (round number) could be tested. While a breach of $ 50.36/18 (200 & 5-DMA) would expose $ 49.67 (50-DMA), below which downside opens up for a test of $ 49.19 (10-DMA).

Author

Dhwani Mehta

FXStreet

Residing in Mumbai (India), Dhwani is a Senior Analyst and Manager of the Asian session at FXStreet. She has over 10 years of experience in analyzing and covering the global financial markets, with specialization in Forex and commodities markets.

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.