WTI drops below $52.00 post-EIA

Pablo Piovano FXStreet

Crude oil prices are now trading on a soft fashion, with the barrel of West Texas Intermediate breaking below the critical $52.00 mark.

WTI stays offered on EIA

Prices of the barrel of the American benchmark for the sweet light crude oil have left the area above the $52.00 handle despite the EIA reported another draw in crude oil inventories during the week ended on October 13, this time by 5.731 million barrels, more than initially forecasted.

Additional data saw weekly distillates stocks up by 0.528 million barrels and gasoline inventories increasing by 0.908 million barrels, coming in below expectations.

Further out, supplies at Cushing rose by 0.202 million barrels.

In the meantime, the barrel of WTI is up for the third consecutive session and flirting with 3-week tops, with the next target now being September’s top at $52.86.

WTI significant levels

At the moment the barrel of WTI is gaining 0.17% at $51.97 facing the next resistance at $52.86 (high Sep.28) followed by $53.76 (high Apr.12) and finally $54.94 (high Feb.23). On the flip side, a break below $51.14 (23.6% Fibo of $45.58-$52.86) would aim for $51.03 (21-day sma) and then $50.08 (38.2% Fibo of $45.58-$52.86).

Author

Pablo Piovano

FXStreet

Born and bred in Argentina, Pablo has been carrying on with his passion for FX markets and trading since his first college years.

AUD/USD looks firm; focus is on 0.7000

AUD/USD starts the week on a positive footing, approaching the 0.7000 hurdle helped by renewed sentiment following firmer-than-expected GDP data from China. Meanwhile, the continuation of the pair’s recovery also comes in contrast with the decent advance in the Greenback, which regains some traction followong last weeks pullback.

USD/JPY struggles near 158.00 amid hawkish BoJ, subdued USD

USD/JPY remains defensive near 158.00 in the Asian session on Monday, as the US Dollar remains depressed near a two-week low amid the recent decline in US bond yields. Furthermore, looming intervention risks underpin the Japanese Yen and weigh on the pair amid BoJ Governor Kazuo Ueda's hawkish remarks. However, Fed rate-hike bets and geopolitical uncertainties could limit USD losses and the major.

Gold drops to daily lows below $4,150

Gold builds on Friday’s retracement and slips back below the $4,150 mark per troy ounce on Monday. The better tone in the US Dollar and a decent bounce in US Treasury yields across the curve keep the yellow metal under pressure for now.

XRP struggles at support as ETF outflows and bearish momentum cloud recovery outlook

Ripple (XRP) holds slightly above $1.30 on Monday, with short-term recovery prospects fading. Strong structural resistance toward $1.40 continues to cap upside, raising the risk of further downside below $1.30.

Higher than expected inflation shakes markets: What to prepare for?

US CPI report came in stronger than expected, lifting the probability of a December rate hike higher once again. Even though Fed Chair Warsh reinforced expectations of a hold for the October’s meeting, markets now face a two-step event: a likely pause on October 28, followed by an interest rate hike on December 9.

The US Dollar fell. Gold didn't rally. That tells you everything

Gold (XAU/USD) is struggling to capitalize on a weaker US Dollar (USD), after repeatedly failing to establish itself above the $4,200 level. The precious metal remains confined to a relatively narrow trading range despite a combination of developments that would normally support higher prices.