WTI aims again for 3-week old resistance as US-Iran tussle remains in play

  • Greenback witnesses pullback following a day’s gain.
  • Geopolitical tension between the US and Iran continues.
  • API data in the spotlight.

Although US Dollar (USD) strength and soft energy imports from China recently dragged WTI back from a three-week-old trend-line, the energy benchmark again targets to confront the resistance as it trades near $53.60 during early Tuesday.

Latest reports from the International Atomic Energy Agency (IAEA) confirmed increasing production of enriched uranium at Iran that follows the nation’s previous announcement to suspend some of the previous nuclear commitments due to the US sanctions.

Additionally, Iran’s Foreign Minister Mohammad Javad Zarif warned that the US cannot 'expect to stay safe' while a German diplomat visited Tehran to diffuse the US-Iran tension.

Furthermore, the greenback has also started witnessing pullback off-late which in turn favors the recovery of the black gold.

Traders now await API crude inventory data to determine near-term trade direction. The private survey figure grew 3.545 million during the previous week.

Technical Analysis

Buyers look for a successful break of $54.30 to target $55.00 while $56.50, $57.80 and $58.15 could appear on their radars afterward. On the contrary, $52.00, $50.60, $49.80 and $48.00 might become sellers’ favorite during the pullback.

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