WTI pushes higher, close to $65.00 post-EIA

Crude oil prices prolong the rally to the vicinity of $65.00 after EIA.
US oil supplies shrunk more than expected by 2.6 mbpd last week.
WTI retakes the $64.00 handle and beyond in the wake of the release.

Pablo Piovano FXStreet

Prices of the barrel of the West Texas Intermediate are extending the weekly squeeze higher after the EIA reported US oil supplies went down more than initially estimated.

WTI advances beyond $64.00 on EIA’s report

Prices of the WTI are moving to fresh multi-week peaks above the $64.00 mark per barrel today after US crude oil inventories decreased more than forecasted in the week ending on March 16.

In fact, the EIA reported that crude oil supplies dropped by 2.622 million barrels vs. a forecasted build of 2.6 million barrels. Furthermore, Weekly Distillates Stocks fell by 2.022 million barrels and Gasoline Inventories decreased by 1.693 million barrels (less than expected).

Additional data saw stockpiles at Cushing rising by 0.905 million barrels, adding to last week’s 0.338 million barrels gain.

In the meantime, crude oil prices keep the march north unabated and bolstered by increasing geopolitical concerns over the Saudi Arabia-Iran situation, leaving behind jitters on rising US oil production for the time being. That said, WTI is already up more than 7% since lows in the $60.00 neighbourhood seen on March 14.

Later in the session, the FOMC will hold its meeting, while Baker Hughes will publish its oil rig count on Friday.

WTI significant levels

At the moment the barrel of WTI is advancing 1.74% at $64.72 facing immediate up barrier at $65.41 (200-month sma) followed by $66.35 (high Feb.2) and finally $66.72 (2018 high Jan.25). On the other hand, a breach of $62.77 (55-day sma) would aim for $61.97 (10-day sma) and finally $60.03 (low Mar.8).

Author

Pablo Piovano

FXStreet

Born and bred in Argentina, Pablo has been carrying on with his passion for FX markets and trading since his first college years.

EUR/USD trims gains, hovers around 1.1900 post-US data

EUR/USD trades slightly on the back foot around the 1.1900 region in a context dominated by the resurgence of some buying interest around the US Dollar on turnaround Tuesday. Looking at the US docket, Retail Sales disappointed expectations in December, while the ADP 4-Week Average came in at 6.5K.

GBP/USD comes under pressure near 1.3680

The better tone in the Greenback hurts the risk-linked complex on Tuesday, prompting GBP/USD to set aside two consecutive days of gains and trade slightly on the defensive below the 1.3700 mark. Investors, in the meantime, keep their attention on key UK data due later in the week.

Gold loses some traction, still above $5,000

Gold faces some selling pressure on Tuesday, surrendering part of its recent two-day advance although managing to keep the trade above the $5,000 mark per troy ounce. The daily pullback in the precious metal comes in response to the modest rebound in the US Dollar, while declining US Treasury yields across the curve seem to limit the downside.

Bitcoin Cash trades lower, risks dead-cat bounce amid bearish signals

Bitcoin Cash trades in the red below $522 at the time of writing on Tuesday, after multiple rejections at key resistance. BCH’s derivatives and on-chain indicators point to growing bearish sentiment and raise the risk of a dead-cat bounce toward lower support levels.

Dollar drops and stocks rally: The week of reckoning for US economic data

Following a sizeable move lower in US technology Stocks last week, we have witnessed a meaningful recovery unfold. The USD Index is in a concerning position; the monthly price continues to hold the south channel support.

Bitcoin Cash trades lower, risks dead-cat bounce amid bearish signals

Bitcoin Cash (BCH) trades in the red below $522 at the time of writing on Tuesday, after multiple rejections at key resistance. BCH’s derivatives and on-chain indicators point to growing bearish sentiment and raise the risk of a dead-cat bounce toward lower support levels.