WTI, after a recent spell above the $70 handle, has just tanked from $69.60 down to a low of $67.56. Moreover, the drop has taken out key MAs and trend line prior resistance line/turns support. Currently, WTI is trading at $68.17bbls, with a high of $70.33bbls and a low of $67.56bbls.
The buy the rumour sell the fact is at play here, somewhat jumping the gun a little, (selling the rumour), considering we are still waiting for a formal announcement from the President of the US due today at 1800GMT. At the same time, while Trump seems intent on withdrawing from the deal, at least it seems he will not be announcing today that he is simply ripping up the agreement, but putting in a strategy to confront the regimes hostile actions and to ensure Iran never acquires a nuclear weapon.
Trump won't immediately withdraw from Iran deal, WTI drops $2 - CNN
There are no surprises here, but a CNN report has stated that President Donald Trump is expected to announce on Tuesday he will allow sanctions to go forward on Iran, "a first step toward withdrawing from the touchstone nuclear agreement negotiated by his predecessor, according to a US official and a person familiar with the plan."
- BREAKING: Trump has told French President Macron that the U.S. will withdraw from the nuclear deal with Iran, source says - NYT
Meanwhile, the dollar seems unphased by any of the geopolitical risks at play and markets are more concerned about the Fed and rate hikes. The US Federal Reserve chairman Jerome Powell warned today that some investors may not be well positioned for anticipated US interest rate hikes, triggering US Dollar appreciation. The DXy is trading at the higher end of the 92.6540-93.2800 range for today at 93.1750. US 10's are trading at the higher end of the range between 2.94%-2.98%.
The 21-D SMA is holding the sell-off up at 67.73 and the price is back above the descending old resistance. RSI has turned steeply lower, with the hourly charts hitting 30 RSI and dailies turning away from the 70 level.
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. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.