WTI: 100-hour MA is capping upside on recession fears

  • Oil is currently probing the 100-hour MA resistance amid US recession fears. 
  • With the futures on the S&P 500 pointing to risk reset, oil prices could rise above the MA hurdle. 

WTI oil's bounce from the seven-day low of $58.20 hit yesterday is struggling to break above the 100-hour MA, currently at $59.35. 

The black gold is struggling to beat the MA hurdle, possibly due to heightened recession fears. On Friday, a section of the treasury yield curve inverted - the spread between the US 10-year and two-year Treasury yields turned negative for the first time since 2007 - triggering fears of recession. Further, the German 10- year bond yield turned negative for the first time since 2016. 

That said, the futures on the S&P 500 are up 0.24 percent at press time, meaning a risk reset could be in the offing. Oil, therefore, may find acceptance above the 100-hour MA hurdle. 

Moreover, risk reset would shift the focus back to the ongoing supply cuts led by producer club OPEC and by U.S. sanctions on Iran and Venezuela. 

That said, the immediate bias is bearish, as per technical studies. The black gold fell 1.67 percent on Friday, confirming a bearish doji reversal. Further, on the 4-hour chart, a head-and-shoulders would be formed if prices retreat from the current level of $59.24. 

Technical Levels

    1. R3 60.76
    2. R2 60.09
    3. R1 59.6
  1. PP 58.93
    1. S1 58.44
    2. S2 57.77
    3. S3 57.28


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.

Feed news

Latest Forex News

Editors’ Picks

EUR/USD steady around 1.1240 in ultra-thin holiday's trading

The EUR/USD pair bounced some 20 pips from its weekly low during the Asian session, now mute around 1.1240 with most market's off today. Softer-than-expected US housing data passed unnoticed.


GBP/USD battling around 1.3000

The GBP/USD pair is heading nowhere fast after bottoming for the week at 1.2978, amid lack of progress in Brexit negotiations.  Encouraging UK data failed to trigger Pound's demand.


USD/JPY: On track to close in the middle of its 50-pip weekly range below 112

The USD/JPY pair remains frozen below the 112 handle in the NA session and there is no reason for it to make a meaningful move as investors are already enjoying the Easter holiday.


The Tale of the Prosperous Consumer-US Retail Sales

American consumers asserted the right to spend in a grand fashion in March boosting retail sales to the fastest expansion in 18 months as the booming job market put the shutdown marked holiday season to rest.

Read more

Gold Forecast: Eyes 8-month rising trendline after weakest weekly close since December

The troy ounce of the precious metal lost around $17 this week and now looks to record its lowest weekly close since the end of December near $1275.

Gold News