Monday, June 10, 2019

USOIL - 10 June 2019

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Fundamental Highlights

With latest fundamentals from the world’s largest industrial player being positive, WTI recovers previous losses to trade near $54.30 during today's early session. The black gold was on the back foot at the week’s start as US-Mexico deal and expectations of trade talks between the US and China propelled the US Dollar strength. However, welcome fundamentals concerning China, the world’s largest industrial player, pleased energy buyers afterward. Not only increased Forex reserve, gold purchase and higher than expected trade data but hawkish comments from China’s State Administration for Foreign Exchange also portrayed the strength of the dragon nation. Given the absence of major data on the economic calendar, trade-related news may gain major attention of traders seeking clues for fresh impulse. Furthermore, the political tussle between the US and Iran may keep offering intermediate trade opportunities.

Technical Analysis

As expected, Crude prices edged higher during Friday's and today's early session to reach the $54.42 resistance level after gaining momentum. The price is currently hovering around this level while closing beneath it as the momentum started to slow down a bit. We will keep focusing on the upside, and this time we will be watching the $55.06 resistance level.

Support: 53.89 / 53.26
Resistance: 54.42/ 55.06

Chart (H4)
USOIL