WTI: Recovery from 8-month lows stalled near $ 62.50

Lifted by strengthening Chinese crude demand, 2019 OPEC output cuts talks.
But bounce limited by USD comeback and rising US oil supplies.

Dhwani Mehta FXStreet

WTI (oil futures on NYMEX) is seen trying hard to extend the bounce above the 5-DMA barrier at 62.46, but in vain, as the sellers continue to lurk amid broad-based US dollar rebound and record US oil output levels.

The recovery attempts remain capped, as markets weigh in a whopping 11.6 million bpd rise in the US oil production in the week ending November 2. More so, the ongoing recovery in the greenback versus its major peers following a slide led by a Democrat’s House win yesterday.

However, the bulls continue to find some respite from the latest talks about the OPEC planning output cuts extending into 2019. Meanwhile, firming crude oil demand from China also helps keep the downside cushioned in the barrel of WTI. China’s October crude imports surged 32 percent from a year earlier to 40.80 million tonnes, or 9.61 million barrels per day (bpd), data from the General Administration of Customs showed on Thursday

Attention now turns towards the key FOMC monetary policy decision due later tonight for fresh impetus on the USD-sensitive oil.

WTI Technical Levels

Resistance: 62.46 (5-DMA), 62.84 (daily R1), 63.18 (Nov 7 high).

Support: 61.81 (April low), 61.22 (8-month lows), 60.50 (psychological levels).

Author

Dhwani Mehta

FXStreet

Residing in Mumbai (India), Dhwani is a Senior Analyst and Manager of the Asian session at FXStreet. She has over 10 years of experience in analyzing and covering the global financial markets, with specialization in Forex and commodities markets.

EUR/USD regains balance, targets 1.1800

EUR/USD has lost a bit of momentum after its earlier push higher and is now attempting to reclaim the key 1.1800 barrier on Monday. In the meantime, investors remain focused on the evolving US–EU trade relationship after President Trump’s announcement of sweeping global tariff hikes.

GBP/USD recedes from tops, back to 1.3500

GBP/USD is extending its move higher on Monday, meeting some resistance around 1.3530 on the back of the widespread bearish tone in the US Dollar amid ongoing uncertainty around tariffs. For now, traders are watching overall risk sentiment and central bank rhetoric for the next directional cue.

Gold advances to four-week highs, focus is on $5,200

Gold is holding onto its bullish tone on Monday, hovering near monthly highs well above the $5,100 mark per troy ounce. Fresh trade-war concerns, coupled with rising geopolitical tensions in the Middle East, are keeping demand for the yellow metal well on the rise.

Crypto Today: Bitcoin, Ethereum, XRP intensify sell-off as tariff uncertainty weighs

Bitcoin, Ethereum and Ripple are trading amid increasing selling pressure at the time of writing on Monday, as investors react to fresh trade uncertainty over US President Donald Trump’s push for more tariffs.

Supreme Court nixes tariffs, Trump teases 15% global tariff

On February 20th, the Supreme Court ruled that Trump’s global tariffs under IEEPA authority were unconstitutional, effectively nullifying the framework. However, the relief was short-lived. Within hours, Trump floated a 15% blanket tariff under an alternative legal authority.

XRP recovers slightly as bearish sentiment dominates crypto market

Ripple is rising above $1.40 at the time of writing on Monday amid fresh tariff-triggered headwinds in the broader cryptocurrency market. The sell-off to $1.33, the token’s intraday low, can be attributed to macroeconomic uncertainty, geopolitical tensions and risk-averse sentiment among other factors.