Forex Marketz Daily Forex News – Fully Markets Update
Looking at the benchmark the U.S. West Texas Intermediate (WTI) crude oil futures contract on the above hourly MT 4 price action chart, oil is trading below $48.40 and towards $48.25/20 per barrel despite economic data out of the United States.
Weekly U.S. rig count fell lower during the week ending 25 December. Weekly inventory levels out of the United States also supporting the WTI crude oil futures above $48 per ounce.
Today is the last trade day and last one of the year and there is nothing on the economic calendar to spur price action with the benchmark WTI crude oil futures contract. With that said, the dollar also remains on the defensive.
The greenback, is a safe haven asset and despite political uncertainty and wrangling in Congress over $2,000 payments to households, remains subdued as traders are focusing more on the positive.
Oil traders are also watching coronavirus (Covid-19) headlines. New cases continue to spike higher across the United States and Europe. This is causing new restrictive measures from lockdowns to curfews that is capping travel and overall global demand for oil. Coronavirus vaccine news and developments are also being watched closely.
Daily WTI Crude Oil Technical Analysis
Looking at the above hourly price action chart, the benchmark WTI crude oil futures contract is still trading above the one hundred and two hundred (100, 200) simple hourly moving averages. This could support another challenge of a falling trend line in play from 18 December. This upside barrier lines up at $48.78 per barrel.
The next layer of technical resistance lines up at a multi-month high price point at $49.45 per barrel with the key round number a $50 per barrel then coming into focus.
On the downside, the first layer of technical support lines up at the one hundred hourly simple moving average at $48.20. The two hundred hourly simple moving average lines up at $47.98 per barrel. The next downside congestion zone is in play at 47.60 to 47.50.
