Forex Marketz Daily Forex News – Fully Markets Update
The benchmark U.S. West Texas Intermediate (WTI) crude oil futures contract was crushed overnight. So was the international Brent crude oil futures contract.
The WTI futures contract, as seen on the above daily MT 4 price action chart, lost 6.8 percent or $4.18 to $57.38 per barrel. The selloff was in full force overnight during the North American trade session. The front end U.S. crude contract is now challenging the fifty (50) day simple moving average.
A lot driving the price action for both WTI and the Brent crude oil futures. Germany, like France, Italy and other euro area nations is getting ready to extend their coronavirus lockdown. The Eurozone is seeing a spike in coronavirus infections. Also a slow rollout of coronavirus vaccines could hurt the demand for crude oil as economic activity is slow.
On the economic calendar, the United States will release weekly crude oil inventory data as well as their monthly flash manufacturing and services PMIs. Germany and France will release monthly flash manufacturing and services purchasing managers’ indices today as will the Eurozone.
The United Kingdom is publishing monthly consumer price index (CPI) data. The UK will also release their monthly flash manufacturing and services purchasing managers’ indices.
Daily U.S. West Texas Intermediate (WTI) Technical Analysis
Price action seems to be stabilizing above the downside barrier in play at the 9 and 12 February low price point at $57.50 per barrel. There are not many support levels to prevent a fall towards $54 per barrel.
On the upside, a move back above the fifty day simple moving is needed for the bulls to see some hope. The next upside barrier lines up at the former support at $60.40 per barrel.
A daily close above this level opens the door to challenge $62.10 per barrel. The next upside barrier is in play at $62.90 per barrel with $63.77 then coming into focus.
