WTI consolidates the recovery around $71.50 ahead of EIA, Fed

WTI is clinging onto recovery gains amid risk-on-market mood, subdued DXY.
API US supplies fell by 6.1 million barrels last week, Evergrande fears ebb.
Focus remains on the Fed decision, Evergrande updates and EIA data.

Dhwani Mehta FXStreet

WTI (NYMEX futures) has entered a phase of upside consolidation around $71.50 on Wednesday after staging an impressive recovery from six-day lows of $69.67 reached a day before.

WTI cheers API stocks draw, risk-on mood

At the time of writing, WTI is trading $71.58, up 1.55% on the day, underpinned by the upbeat market mood, courtesy of easing fears over a default by China’s Evergrande, especially after the company announced that its main unit will make the repayment on Thursday.

Additionally reports that the Chinese government could take over control of Evergrande in an imminent restructuring also buoy the risk sentiment, aiding the recovery in the higher-yielding oil.

Further, the return of risk appetite dulls the US dollar’s safe-haven allure, benefiting the USD-denominated WTI prices. Markets also remain defensive on the greenback ahead of the Fed monetary policy decision, with a tapering announcement widely anticipated.

On the fundamental front, a sharp drawdown in the US weekly crude stockpiles, as per the American Petroleum Institute’s (API) report published late Tuesday, also collaborates with the bullish undertone in the black gold.

The latest API data showed that the US crude supplies fell by 6.1 million barrels for the week ended September 17. Attention now turns towards the Energy Information Administration (EIA) weekly crude stocks change data and the Fed verdict for fresh trading impulse.

WTI technical levels to consider

WTI

Overview
Today last price	71.52
Today Daily Change	0.68
Today Daily Change %	0.96
Today daily open	70.78

Trends
Daily SMA20	69.5
Daily SMA50	69.13
Daily SMA100	69.25
Daily SMA200	63.39

Levels
Previous Daily High	71.42
Previous Daily Low	69.35
Previous Weekly High	72.88
Previous Weekly Low	69.3
Previous Monthly High	73.54
Previous Monthly Low	61.73
Daily Fibonacci 38.2%	70.63
Daily Fibonacci 61.8%	70.14
Daily Pivot Point S1	69.62
Daily Pivot Point S2	68.45
Daily Pivot Point S3	67.55
Daily Pivot Point R1	71.68
Daily Pivot Point R2	72.58
Daily Pivot Point R3	73.74

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.

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