WTI technical analysis: Under pressure in Asia with a spike to a fresh daily low

The bears are in control while below the 21-DMA and target a break to below the 50 handle.
The 21-DMA is the first hurdle for the bulls which is located a touch below 55 the figure.

Ross J Burland FXStreet

West Texas Intermediate crude has been under pressure in Asia and spiked to a fresh daily low following the trade talks headlines which sparked off a risk-off session.

Overnight, on a spot basis, WTI was up some 0.20% into the close on Wall Street, having climbed from a low of $52.28 only to be rejected at the $53.73 highs and painting a bearish pin bar on the daily charts again.

In Asia, so far, the price dropped to a low of $51.39 but was quickly bought up again by the bulls to the current $52.50s. The 21-DMA is the first hurdle for the bulls which is located a touch below $55 the figure. The $50 and 200-DMAs are surrounding the 56 handle while a 50% Fibonacci retracement of the 16th Sep to 3rd Oct lows comes into play in the $57 handle.

However, the bears are in control while below the 21-DMA and target a break to below the $50 handle which then opens the Nov 2018 lows at $49.39. Thereafter, bars can look towards $46.90 level ahead of the18th Dec lows down at $45.77 ahead of the Dec double bottom lows below $42.50.

WTI daily chart

Author

Ross J Burland

FXStreet

Ross J Burland, born in England, UK, is a sportsman at heart. He played Rugby and Judo for his county, Kent and the South East of England Rugby team.

EUR/USD looks weak below 1.1800

EUR/USD has slipped back under pressure, breaking through the 1.1800 support and drifting towards the weekly lows near 1.1770 ahead of the opening bell in Asia. The move reflects renewed strength in the US Dollar, with steady geopolitical tensions keeping its demand firm. Moving forward, the release of the German labour market report and flash inflation figures should keep European investors entertained on Friday.

GBP/USD threatens the 200-day SMA near 1.3440

GBP/USD rapidly leaves behind Wednesday’s strong advance, coming under heavy pressure and retesting the 1.3440 zone, where the critical 200-day SMA is located. Cable’s deep pullback follows the strong gains in the Greenback, while investors continue to pencil in a potential BoE rate cut in March.

Gold trims gains, slips back to around $5,170

Gold is now facing some downside pressure, hovering around the $5,170 region on Thursday. The yellow metal surrenders part of its earlier gains on the back of the resurgence of the buying interest in the Greenback. In the meantime, geopolitical tensions in the Middle East continue to limit the downside potential for now.