WTI flirts with session lows, holds above $60.00/barrel mark

Worries about risking supply prompted fresh selling around WTI on Monday.
Concerns about rising COVID-19 cases in Europe added to the selling bias.
The lack of follow-through selling below the $60.00 mark warrants caution.

Haresh Menghani FXStreet

WTI crude edged lower through the early European session and momentarily slipped below the $60.00 mark in the last hour, albeit quickly recovered a bit thereafter. The commodity was last seen trading around the $60.35 region, down 1.80% for the day.

The commodity witnessed some fresh selling on the first day of a new trading week and eroded a major part of Thursday's positive move amid concerns about rising supply. The OPEC+ agreed last Thursday to roll back its production cuts between May and July amid signs of a strong US economic rebound.

The announcement coincided with increasing Iranian production. This comes amid worries that the third wave of COVID-19 infections and pandemic-related lockdowns in Europe could hinder the anticipated recovery in the fuel demand, which, in turn, prompted some fresh selling around oil prices.

Apart from this, a mildly positive tone around the US dollar further exerted some pressure on the dollar-denominated commodity, including oil. The USD remained well supported by an upbeat US economic outlook and got an additional boost from a fresh leg up in the US Treasury bond yields.

Despite the negative factors, the commodity, so far, has managed to hold above the key $60.00/barrel mark. This, in turn, warrants some caution for bearish traders and positioning for any further downside amid relatively thin liquidity on the back of the Easter Monday holiday in Europe.

Market participants now look forward to the US economic docket, highlighting the release of ISM Services PMI for a fresh impetus. The data, along with the US bond yields, will influence the USD price dynamics and produce some short-term trading opportunities around crude oil prices.

Technical levels to watch

WTI

Overview
Today last price	60.32
Today Daily Change	-0.97
Today Daily Change %	-1.58
Today daily open	61.29

Trends
Daily SMA20	62.42
Daily SMA50	59.78
Daily SMA100	53.69
Daily SMA200	47.1

Levels
Previous Daily High	61.74
Previous Daily Low	58.9
Previous Weekly High	62.25
Previous Weekly Low	58.88
Previous Monthly High	67.87
Previous Monthly Low	57.27
Daily Fibonacci 38.2%	60.66
Daily Fibonacci 61.8%	59.99
Daily Pivot Point S1	59.54
Daily Pivot Point S2	57.8
Daily Pivot Point S3	56.7
Daily Pivot Point R1	62.39
Daily Pivot Point R2	63.49
Daily Pivot Point R3	65.23

Author

Haresh Menghani

FXStreet

Haresh Menghani is a detail-oriented professional with 10+ years of extensive experience in analysing the global financial markets.

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