WTI Price Analysis: Crude drops below $60 after head-and-shoulders breakdown

WTI drops below $60 to hit the lowest since Feb. 22.
The hourly chart shows scope for a deeper decline.

Omkar Godbole FXStreet Contributor

West Texas Intermediate (WTI) crude, a North American oil benchmark, printed a low of $59.86 soon before press time, having confirmed a head-and-shoulders (H&S) breakdown, a bearish reversal pattern, on the hourly chart on Monday.

Oil could drop further, as the H&S breakdown has opened the doors for $59.13 (target as per the measured move method).

The case for a deeper pullback looks strong, with the daily chart flashing a bearish Doji reversal pattern. Further, the 14-day Relative Strength Index (RSI) is diving out of a sideways channel in favor of the bears.

Acceptance above the 200-hour Simple Moving Average at $61.55 would invalidate the bearish view.

Hourly chart

Trend: Bearish

Technical levels

WTI

Overview
Today last price	59.68
Today Daily Change	-0.68
Today Daily Change %	-1.13
Today daily open	60.36

Trends
Daily SMA20	59.4
Daily SMA50	54.3
Daily SMA100	48.46
Daily SMA200	44.24

Levels
Previous Daily High	62.82
Previous Daily Low	59.89
Previous Weekly High	63.72
Previous Weekly Low	58.81
Previous Monthly High	63.72
Previous Monthly Low	51.6
Daily Fibonacci 38.2%	61.01
Daily Fibonacci 61.8%	61.7
Daily Pivot Point S1	59.23
Daily Pivot Point S2	58.09
Daily Pivot Point S3	56.3
Daily Pivot Point R1	62.16
Daily Pivot Point R2	63.95
Daily Pivot Point R3	65.09

Author

Omkar Godbole

FXStreet Contributor

Omkar Godbole, editor and analyst, joined FXStreet after four years as a research analyst at several Indian brokerage companies.

EUR/USD challenges 1.1800, two-week lows

EUR/USD remains on the defensive, extending its leg lower to the vicinity of the 1.1800 region, or two-week lows, on Tuesday. The move lower comes as the US Dollar gathers further traction ahead of key US data releases, inclusing the FOMC Minutes, on Wednesday.

GBP/USD looks weaker near 1.3500

GBP/USD adds to Monday’s pessimism and puts the 1.3500 support to the test on Tuesday. Cable’s marked pullback comes in response to extra gains in the Greenback while disappointing UK jobs data also collaborate with the offered bias around the British Pound.

Gold loses further momentum, approaches $4,800

Gold recedes to fresh two-week troughs around the $4,800 region per troy ounce on Tuesday. The precious metal builds on Monday’s downtick following a marked rebound in the US Dollar and mixed US Treasury yields across the board.

Crypto Today: Bitcoin, Ethereum, XRP upside looks limited amid deteriorating retail demand

The cryptocurrency market extends weakness with major coins including Bitcoin (BTC), Ethereum (ETH) and Ripple (XRP) trading in sideways price action at the time of writing on Tuesday.

UK jobs market weakens, bolstering rate cut hopes

In the UK, the latest jobs report made for difficult reading. Nonetheless, this represents yet another reminder for the Bank of England that they need to act swiftly given the collapse in inflation expected over the coming months.

Ripple slides to $1.45 as downside risks surge

Ripple edges lower at the time of writing on Tuesday, from the daily open of $1.48, as headwinds persist across the crypto market. A short-term support is emerging at $1.45, but a buildup of bearish positions could further weaken the derivatives market and prolong the correction.