WTI: Downside opening up towards $ 69.50 amid OPEC output boost talks

Looks vulnerable amid OPEC, non-OPEC output lift talks, stronger USD adds to the weight.
Technical set up also indicate further downside risks, with a test of 0.6950 imminent.

Dhwani Mehta FXStreet

WTI (oil futures on NYMEX) extends its losing streak into a fourth-day today, as rising worries over the latest report that the OPEC and non-OPEC producers are considering increasing the output by 1 mln bpd, adds to the ongoing sell-off in oil.

OPEC and Russia are said to ease supply curbs to offset disruptions in Venezuela and an expected drop in Iranian exports. However, Russia’s Energy Minister Novak declined to comment on the same, saying that all proposals will be discussed in June’s Vienna meeting.

Also, adding to weakness in oil prices, the US dollar remains broadly bid following renewed geopolitical concerns surrounding the US and North Korea. Markets now await the US durable goods data and Fed Chair Powell’s speech for fresh dollar trades, which could have a major bearing on the USD-sensitive oil.

WTI Technical levels

According to Jason Sen, Director at DayTradeIdeas.com “WTI Crude lower as expected but we are now oversold in the short term so could bounce in to the weekend (no guarantees!). HOWEVER ,LONGS ARE TOO RISKY - WE USE THIS BOUNCE TO SELL IN TO SHORTS. A high for the day certainly possible at 7150/60 but above 7190 could see us retest important resistance at 7280/7300. Bulls require a close above 7320 to be back in control next week.”

“A correction exactly as predicted with 7060 target hit. A WEEKLY CLOSE BELOW 7020 IS A BIGGER WEEKLY SELL SIGNAL FOR THE START OF NEXT WEEK. Targets: 6960/50, 6925/20, perhaps as far as 6875/65,” Jason adds.

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 recedes to daily lows near 1.1850

EUR/USD keeps its bearish momentum well in place, slipping back to the area of 1.1850 to hit daily lows on Monday. The pair’s continuation of the leg lower comes amid decent gains in the US Dollar in a context of scarce volatility and thin trade conditions due to the inactivity in the US markets.

GBP/USD flat lines near 1.3650 ahead of UK and US data

GBP/USD kicks off a new week on a subdued note and oscillates in a narrow range near 1.3650 on Monday. The mixed fundamental backdrop warrants some caution for aggressive traders as the market focus now shifts to this week's important data releases from the UK and the US.

Gold corrects lower, tries to stabilize above $5,000

Gold started the week under bearish pressure and declined to the $4,960 area before staging a modest rebound. As trading volumes remain thin with the US financial markets remaining closed on Presidents' Day holiday, XAU/USD looks to stabilize above $5,000 ahead of this week's key data releases.

Bitcoin consolidates as on-chain data show mixed signals

Bitcoin price has consolidated between $65,700 and $72,000 over the past nine days, with no clear directional bias. US-listed spot ETFs recorded a $359.91 million weekly outflow, marking the fourth consecutive week of withdrawals.

The week ahead: Key inflation readings and why the AI trade could be overdone

It is likely to be a quiet start to the week, with US markets closed on Monday for Presidents Day. European markets are higher across the board and gold is clinging to the $5,000 level after the tamer than expected CPI report in the US reduced haven flows to precious metals.

Monero Price Forecast: XMR risks a drop below $300 under mounting bearish pressure

Monero (XMR) starts the week under pressure, recording a 4% decline at press time on Monday after a 7% drop the previous day, putting the $300 support zone in focus.