WTI Price Analysis: Eyes resistance at $41.72

WTI recovers from session lows and eyes resistance of Sept. 18 high of $41.72.
Daily chart indicators favor a breakout above the key hurdle.

Omkar Godbole FXStreet Contributor

The West Texas Intermediate (WTI) crude, the North American oil benchmark, is currently trading at $41.55, representing a 0.36% decline on the day.

The black gold has recovered from the session low of $41.12 and is fast approaching resistance at $41.72 (Sept. 18 high).

While the bulls failed to establish a foothold above that level on Monday, they ended up carving out a bullish outside day candle. That, coupled with the above-50 or bullish reading on the 14-day relative strength index and the positive value on the MACD histogram, suggests scope for a breakout above $41.72. That would expose the 2020 high of $43.78 reached on Aug. 26.

A bearish reversal would be confirmed if the resistance at $41.72 holds and sends prices back below Tuesday's low of $40.46.

Daily chart

Trend: Bullish above $41.72

Technical levels

Author

Omkar Godbole

FXStreet Contributor

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

GBP/USD flirts with tops near 1.3470

GBP/USD manages to regain composure and challenge the area of daily highs around 1.3470 on Friday. Cable picks up pace despite marginal gains in the Greenback in a context of swelling geopolitical tensions and rising global oil prices.

EUR/USD trims losses, back above 1.1500

EUR/USD picks up some pace and bouces off earlier lows, reclaiming the 1.1500 threshold and beyond at the end of the week. The pair’s modest pullback follows a persistent risk-averse market mood and renewed buying interest for the US Dollar.

Gold: The $4,000 mark holds the downside for now

Gold faces renewed selling pressure, falling sharply toweard the $4,000 mark per troy ounce as the US Dollar regains momentum. Escalating US-Iran tensions are keeping inflation concerns and expectations of further Fed rate hikes alive, weighing further on the yellow metal.

Bitcoin eyes 50-day EMA breakout, Ethereum consolidates, XRP steadies

Bitcoin, Ethereum, and Ripple trade near key technical levels on Friday as the broader cryptocurrency market pauses following last week's recovery. BTC is approaching the 50-day Exponential Moving Average while ETH continues to consolidate between two major EMAs.

Warsh needs to restore his reputation

We were glad to see our deeply negative reaction to the Warsh press conference was not some personal peculiarity. Just about everybody in the financial press felt the same way. The consensus is building it’s not the Fed in the dog-house but only Warsh. Today the WSJ changed it tune and blasted Warsh—"the honeymoon is already over..”

9-3: Is the Federal Reserve’s vote tally Warsh's new forward guidance?

The rate did not move. Neither did the statement, and that’s the more interesting fact. Set the July 29 Federal Open Market Committee (FOMC) statement beside the one issued on June 17, and the two documents are identical apart from a single verb and a paragraph at the bottom naming three dissenters.