Forex Marketz Daily Forex News – Fully Markets Update
Looking at the widely traded West Texas Intermediate (WTI) crude oil futures oil contract, this contract has broken below the one hundred and two hundred (100, 200) hourly simple moving averages (SMA). These simple moving averages had been holding up until the morning Asian trade session on Friday.
WTI crude oil traders are worried about demand as the global coronavirus pandemic (Covid-19) is surging around the world causing new restrictions. The United States has also canceled the Keystone Pipeline permit into Canada.
The United States is looking to extend the nuclear arms proliferation treaty with Russia by five years. Also the Biden administration has rejoined the World Health Organization (WHO), the global coronavirus vaccine program and the Paris Climate Accords.
Today’s economic calendar is busy with flash purchasing managers’ indices. The euro area is publishing a whole slew of monthly flash purchasing managers’ indices (PMI). Germany, France as well as the Eurozone will all release their monthly flash PMIs. They are also publishing monthly flash manufacturing purchasing managers’ indices.
The United States is releasing weekly crude oil inventory levels as well as natural gas inventory data from the EIA. The U.S. will also publish monthly flash services and manufacturing purchasing managers’ indices.
Daily WTI Crude Oil Technical Analysis
Looking at the above WTI crude price action chart, oil is now challenging the bottom of a nine day old symmetrical triangle pattern.
The relative strength index (RSI) has also turned negative as this crude contract failed to challenge the upside barrier of the triangle at $53.65 per barrel.
As a result the key hourly SMA support level has broken. This shifts focus towards $52.05 per barrel then the round $52 level. Below $52, the supports lining up at 51.30, 51.00 and the key barrier at $50 per barrel.
On the upside, a daily close above 53.65 opens the door to challenge $54 per barrel then February 2020 high price point at $54.70.
