Forex Marketz Daily Forex News – Fully Markets Update
The price of US WTI crude oil fell alongside gold prices this morning. This is probably due to the de-facto strength in the almighty buck (US Dollar) which puts selling pressure on commodity plays. The WTI contract shrugged off data from the API that reported that oil inventories shed 5.79 million barrels last week.
Looking at today’s overall economic calendar, in both Europe and North America, things are fairly quiet. Oil traders will hear more commentary from Fed officials. These comments are likely to fall on deaf ears as another rate hike for next month is already priced in. This will lead non-interest rate bearing assets like crude and gold under selling pressure. On the docket is the official EIA inventory data. This should show a 2.08 million barrel drawdown in US inventories. A larger drawdown, inline with the recent API estimate may put more pressure on crude today.
Crude Oil Technical Analysis
Using the above daily MT 4 chart, let’s discuss today’s crude daily technical analysis. The black gold continues to consolidate recent losses above $45.32 per barrel. A daily close below this first downside barrier challenges the next technical support level that lines up at $43 per barrel.
The alternative technical analysis, notes the first upside barrier lining up at 47.20. A break above this first technical resistance level challenges the next upside barrier lining up a $49.10 per barrel.
