WTI holds in supply zone, eyes on correction to 21-day EMA

US oil takes a breather in the resistance zone with a focus on a correction.
US dollar slumps to fresh lows, but commodities remain on backfoot.

Ross J Burland FXStreet

WTI was ending the North American day flat on Tuesday and had travelled between a low of $65.43 and a high of $66.49.

The US dollar has edged lower on Tuesday to print 89.5350 for a fresh 4-1/2 month lows against a basket of peers in the DXY.

Nevertheless, the commodities complex was down on the day according to the CRB index that fell 0.26% by the close on Wall Street.

Meanwhile, the price of oil has been supported by tempered expectations of an early return of oil exporter Iran to international crude markets as well as prospects of unprecedented demand from the global economic recovery.

Indirect negotiations between the United States and Iran are due to resume in Vienna this week. Talks were given another life after Tehran and the UN nuclear agency extended a monitoring agreement on the Middle Eastern country's atomic programme.

Overall, the market is approaching the seasonal peak in demand, and analysts argue that it will be in a much stronger position to handle any additional oil.

WTI technical analysis

We saw the last bullish impulse has extended back into resistance territory on the daily chart and has been capped near to the prior highs of 66.99.

However, a move higher will open the potential for a significant continuation. On the other hand, a correction would be expected in the near term.

A 38.2% Fibonacci of the daily bullish impulse comes in at 64.57 meeting the 21-day EMA.

Author

Ross J Burland

FXStreet

Ross J Burland, born in England, UK, is a sportsman at heart. He played Rugby and Judo for his county, Kent and the South East of England Rugby team.

AUD/USD hangs close to monthly lows, still defends 0.7100 ahead of Fed decision

AUD/USD retains its negative bias for the third straight day, defending 0.7100 while trading close to a monthly low in Wednesday's Asian session on Wednesday. The US Dollar stands firm near a two-week high as the anticipated Fed rate hike and oil-driven inflation fears continue to push US bond yields to a multi-year high. Furthermore, escalating Middle East tensions benefit the safe-haven buck and weigh on the risk-sensitive Aussie.

USD/JPY holds firm above 155.00, awaits Fed policy announcements

USD/JPY climbs to a fresh one-week high above 155.00 in the Asian session on Wednesday amid a bullish US Dollar. Oil-driven inflation fears, along with the anticipated Fed rate hike, continue to support surging US bond yields. Moreover, rising US-Iran tensions underpin the USD's reserve currency status. The pair, however, remains below the mid-155.00s as bulls seem hesitant ahead of the Fed decision later today and the BoJ meeting, starting on Thursday.

Gold bounces to $4,350; focus on the Fed

Gold sets aside two daily declines in a row, gathering some composure and revisiting the $4,350 zone per troy ounce amid decent gains midweek. The precious metal’s recovery comes despite an acceptable advance in the US Dollar and declining US Treasuty yields prior to the anticipated rate hike by the Fed.

XRP Price Forecast: XRP clings to 50-day EMA support after CLARITY Act setback

Ripple (XRP) trades lower around $1.28 on Wednesday, as investors broadly assess the impact of the failed United States (US) Senate vote on the CLARITY Act and the upcoming Federal Reserve (Fed) monetary decision. The remittance token has trimmed early-week gains that tagged highs around $1.50 on Monday and now holds key moving-average support.

Fed decision in focus

Starting with the most important, the Fed decision. Heading into the event, data showed a rather punchy US August jobs report, which, you will likely recall, triggered a hawkish Fed rate repricing in rates markets. However, the recent US August CPI print mattered more.

How Japan became the World's Banker and why that era may be ending

Japan's ultra-low interest rates helped finance trillions of dollars in global investments for more than a decade, making the Japanese Yen one of the world’s cheapest sources of funding. With the Bank of Japan expected to tighten policy again this week, that advantage may be entering a new phase. While most major economies raised interest rates, Japan remained the world's outlier.