WTI bounces off 7-day old support-line amid mixed growth concerns


  • WTI heads to short-term key moving averages (MA) as markets cheer latest risk-on.
  • Comments from the US President, OPEC report and likely additional easing from the PBOC play their roles.

With last weekend’s risk-on carrying forward, WTI rises to $55.00 during Monday morning in Asia. The energy benchmark recently took advantage of the US President Donald Trump’s comments and expectations of further easing from China’s central bank while portraying the aftershocks of OPEC’s latest report.

In its monthly Oil Market Report, the Organization of the Petroleum Exporting Countries (OPEC) cuts forecast for 2019 global oil demand growth to 1.10 million barrels per day (bpd) versus the previous forecast of 1.14 million bpd. In addition to announcing only a marginal impact of likely global slowdown, the oil cartel upwardly revised 2020 demand.

Recently, the US President Donald Trump turned down expectations of an economic recession while news took the rounds that the People’s Bank of China (PBOC) is to release a new reference rate for bank loans and should see lower rates for business borrowings.

Additionally, the Forbes report of a weekend attack over the Saudi Aramco’s oil facility at Shaybah adds strength to the momentum.

Weighing the upside is on-going pessimism surrounding the US-China trade deal that recently worsened after the US President challenged China’s Hong Kong moves and termed Huawei as the national threat.

Moving on, investors will follow near-term growth directions and supply concerning clues for fresh impulse amid a lack of data/events on the economic calendar to publish.

Technical analysis

The seven-day-old rising support-line at $54.80 acts as immediate support, a break of which can drag prices to August 15 low of $53.77, $53.00 and then to monthly bottom close to $50.50. Alternatively, an upside clearance of July 26 low near $55.80 can propel prices to the monthly high of $57.40.

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility.

Feed news

Latest Forex News

Editors’ Picks

Euro rolling into the Asian session below the 1.1050 level

The shared currency, on the daily chart, is trading in a bear trend below the main DSMAs. The Euro has been in a trading range over the last two weeks as the market participants are waiting for a catalyst.

EUR/USD News

GBP/USD: 3-week-old resistance-line questions 100-DMA breakout

Successful trading beyond 100-day simple moving average (DMA) fails to lend much strength to the GBP/USD pair as it struggles around 1.2520 during Friday morning. A rising trend-line since August-end, seems to challenge buyers.

GBP/USD News

USD/JPY flat in Tokyo opening hour, bears eye break below 107.45.

USD/JPY is flat in the Tokyo opening hour as we wind down into the close for the week following a data-heavy number of sessions which have left more questions unanswered and the outlook murky. 

USD/JPY News

Gold consolidating at technical levels awaiting next catalyst

Precious metals were higher on Thursday. Gold prices climbed from $1,489.13 to $1,504.60. The gold ratio travelled between 83.87 and 84.66 with a bullish bias as the yellow metal surges on. 

Gold News

The Federal Reserve Keeps its Options Open

The Federal Reserve’s two rate cuts in as many months have satisfied market expectations for action and will give the governors time to determine if a full reduction cycle is warranted.

Read more

Forex MAJORS

Cryptocurrencies

Signatures