WTI finds support at $65.50 ahead of API

Crude oil prices prolong the rejection from recent tops.
WTI rebounds from daily lows in the $65.50 region.
Weekly report on US crude oil supplies by the API next on tap.

Pablo Piovano FXStreet

Prices of the barrel of WTI are extending the weekly leg lower on Tuesday, currently hovering over the low-$66.00s after bottoming out near $65.50.

WTI attention to US supplies

Prices of the American benchmark for the sweet light crude oil are intensifying the negative start of the week, losing ground for the second session in a row and receding further from last week’s 3-year tops in the $67.70 zone.

Shrinking geopolitical concerns in the Middle East also removed tailwinds from the recent strong upside in crude oil, allowing the ongoing retracement in prices and opening the door to extra downside in the near term.

However, volatility is expected to remain high around crude oil, in light of fears over a US-China trade war, shrinking crude oil output in Venezuela, potential US sanctions against Iran and headlines citing the probability of an extension of the OPEC/non-OPEC production cut deal.

Later in the session, the American Petroleum Institute will publish its report on US crude oil supplies ahead of tomorrow’s DoE’s report and the oil rig count due on Friday.

WTI significant levels

At the moment the barrel of WTI is down 0.26% at $66.17 and a breakdown of $65.11 (10-day sma) would expose $64.70 (21-day sma) and finally $61.77 (low Apr.6). On the other hand, the next hurdle aligns at $67.72 (2018 high Apr.13) followed by $69.66 (monthly high Dec.2014) and finally $70.00 (psychological level).

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.

EUR/USD remains depressed below mid-1.1800s; downside potential seems limited

The EUR/USD pair attracts some sellers for the second consecutive day on Tuesday and hovers below mid-1.1800s amid a relatively quiet trading action during the Asian session. The broader fundamental backdrop, however, warrants some caution for bearish traders before positioning for deeper losses.

GBP/USD trades with negative bias, eyes 1.3600 ahead of UK jobs data

The GBP/USD pair trades with a negative bias for the second straight day, though it lacks bearish conviction and holds above the 1.3600 mark through the Asian session on Tuesday. Traders now look forward to the release of the UK monthly jobs report, which will influence the British Pound and provide some impetus to the currency pair.

Gold declines as trading volumes remain subdued due to holidays in China

Gold price extends its losses for the second successive session, trading around $4,930 per troy ounce during the Asian hours on Tuesday. Gold price is trading nearly 0.7% lower at the time of writing as trading volumes stayed thin due to market holidays across China, Hong Kong, and other parts of Asia.

AI Crypto Update: Bittensor eyes breakout as AI tokens falter

The artificial intelligence (AI) cryptocurrency segment is witnessing heightened volatility, with top tokens such as Near Protocol (NEAR) struggling to gain traction amid the persistent decline in January and February.

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.

XRP steadies in narrow range as fund inflows, futures interest rise

Ripple is trading in a narrow range between $1.45 (immediate support) and $1.50 (resistance) at the time of writing on Monday. The remittance token extended its recovery last week, peaking at $1.67 on Sunday from the weekly open at $1.43.