WTI extends its losses down 7.29% in the week, trades under $63.00
- Oil slides by the fifth day in a row, almost 1% down.
- The increase of Covid cases around the world could impact Crude demand.
- Recent US dollar strength keeps Oil prices under pressure.
Oil extends its fall in the week, is down by almost 1.38% in the session, and trades under the $63.00 around $62.78. Yesterday closed at $63.65 posting a loss of 0.94%.
The prices are affected by the surge in cases of the Delta variant, which could diminish Crude demand around the world. Moreover, raising questions about vaccine efficacy starts to emerge, as the United States will start the covid-19 vaccine boost program by September 20.
Risk appetite continues weak, with some of the commodity currencies like the AUD, the NZD and the CAD falling 0.08%, 0.12% and 0.16% respectively against the greenback. The US 10-year Treasury yields rise 10 basis points (bps) to sit at 1.252%, while the DXY which tracks the value of the US dollar against six currencies, gains 0.05%.
Oil prices are being influenced by the greenback, which recent strength lies in the Fed’s bond taper expectations. The Jackson Hole Symposium approaches, where the chairman Jerome Powell’s speech is the most expected by investors.
WTI technical outlook
WTI trades between the 100-day moving average, and the 200-DMA. The 50-DMA stands around $70.00 flat. In today’s session a dip to $62.00 price was retraced, and Crude trades in the mid-point of the $62-63.97 range. On the downside, the first support is $62.00, followed by May 21 low at $61.52, then $61. Contrarily to the upside, the first resistance is at $63, followed by $64, then May 20 low around the $64.95-65 range
RSI is at 30.54 heading towards oversold levels, thus supporting the downtrend, while the Average True Range is $2.13 steady in the session,
Author
Christian Borjon Valencia
FXStreet
Christian Borjon began his career as a retail trader in 2010, mainly focused on technical analysis and strategies around it. He started as a swing trader, as he used to work in another industry unrelated to the financial markets.
