WTI Crude Oil tumbles toward $31 on shock Fed cut amid the coronavirus crisis

Yohay Elam FXStreet

WTI crude oil has kicked off the week with a fall to nearly $31, down nearly $2 or 6% from the close price on Friday.

The Federal Reserve shocked markets with the second unscheduled interest rate cut, this time eliminating 1% and setting it at zero. The coronavirus crisis triggered a massive sell-off in stocks and fears of s systemic risk grew. Petrol prices also suffered the breakdown of the OPEC+ pact between Saudi Arabia and Russia.

While the Fed's cut provides room for some calm in markets, it also reveals the levels of distress.

WTI still trades above last Monday's low at the $28 handle. Support awaits at $31 and $30.50. Resistance is at $32, $33, and $34.50.

Author

Yohay Elam

FXStreet

Yohay is in Forex since 2008 when he founded Forex Crunch, a blog crafted in his free time that turned into a fully-fledged currency website later sold to Finixio.

EUR/USD deflates to fresh lows, targets 1.1600

The selling pressure on EUR/USD now gathers extra pace, prompting the pair to hit fresh multi-week lows in the 1.1625-1.1620 band on Friday. The continuation of the downward bias comes in response to further gains in the US Dollar as market participants continue to assess the mixed release of US Nonfarm Payrolls in December.

GBP/USD breaks below 1.3400, challenges the 200-day SMA

GBP/USD remains under heavy fire and retreats for the fourth consecutive day on Friday. Indeed, Cable suffers the strong performance of the Greenback, intensified post-mixed NFP, and trades at shouting distance from its critical 200-day SMA near 1.3380.

Gold flirts with yearly tops around $4,500

Gold keeps its positive bias on Friday, adding to Thursday’s advance and challenging yearly highs in the $4,500 region per troy ounce. The risk-off sentiment favours the yellow metal despite the firmer tone in the Greenback and rising US Treasury yields.