WTI retreats from one-week tops, holds above mid-$65.00s

WTI attracted some dip-buying on Tuesday and turned positive for the third straight session.
The uptick seemed rather unaffected by the possibility of additional crude supply from Iran.
The prevalent risk-on mood, sustained USD selling bias remained supportive of the move up.
Concerns about the continuous surge in COVID-19 cases might keep a lid on any further gains.

Haresh Menghani FXStreet

WTI shot to fresh one-week tops during the early North American session, albeit quickly retreated thereafter and was last seen trading just above mid-$65.00s.

The black gold has now moved back into the positive territory for the third straight day and looking to build on its strong momentum from three-week lows, around mid-$61.00s touched last Friday. Bulls seemed rather unaffected by the possibility of additional supply from Iran, which holds the world’s fourth-biggest oil reserves.

The fifth round of negotiations between the United States and Iran resumed in Vienna this Tuesday. The price action, however, seems to suggest that the market is not expecting the nuclear agreement to bre reinstated in the near future. This, in turn, suggests that Iranian oil exports are unlikely to return quickly to the global market.

Meanwhile, the prevalent bearish sentiment surrounding the US dollar acted as a tailwind for dollar-denominated commodities, including oil. This turned out to be the key factor behind a modest uptick in oil prices during the second half of the trading action. That said, worries that ever-increasing COVID-19 cases in some Asian countries could hinder fragile fuel demand recovery might hold bulls from placing aggressive bets.

This makes it prudent to wait for some strong follow-through buying beyond the monthly swing highs, around the $67.00/barrel mark before positioning for any further appreciating move.

Technical levels to watch

WTI

Overview
Today last price	66.28
Today Daily Change	0.31
Today Daily Change %	0.47
Today daily open	65.97

Trends
Daily SMA20	64.61
Daily SMA50	62.56
Daily SMA100	59.87
Daily SMA200	51.07

Levels
Previous Daily High	66.08
Previous Daily Low	63.59
Previous Weekly High	67
Previous Weekly Low	61.53
Previous Monthly High	65.4
Previous Monthly Low	57.66
Daily Fibonacci 38.2%	65.13
Daily Fibonacci 61.8%	64.54
Daily Pivot Point S1	64.35
Daily Pivot Point S2	62.72
Daily Pivot Point S3	61.86
Daily Pivot Point R1	66.84
Daily Pivot Point R2	67.7
Daily Pivot Point R3	69.33

Author

Haresh Menghani

FXStreet

Haresh Menghani is a detail-oriented professional with 10+ years of extensive experience in analysing the global financial markets.

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