The bid tone weakened in the US session yesterday after the Energy Information Administration reported an inventory increase of 7.2 million barrels for the week to March 29 where the markets were expecting a 2.8-million-barrel build in oil inventories. Traders now will focus on the Dollar and in particular the US economic growth, keeping in mind the ongoing negotiations between the US and China.
Crude oil edged lower during yesterday's session and settled on the upper band of the channel represented on the chart. The price is currently holding just above the $62 level, however, the momentum has started to slow away as it pulls out from the overbought zone. We expect a bigger downward move and this time we will be focusing on the $61.31 support level.
Support: 62.76 / 61.31
Resistance: 63.41 / 64.07