Despite benefiting from trade-positive headlines and the weaker greenback, WTI fails to hold on to recovery gains while getting back below the $54 level during today’s early session. The oil benchmark earlier benefited from the US Dollar weakness, mainly due to downbeat data increasing odds of further rate cuts from the US Federal Reserve, and upbeat comments from China’s Commerce Ministry. However, recent ceasefire by the Turkish leader in the nation’s fight against Kurdish fighters in Syria has led to the bearish pressure for the prices. Further, a lack of negative news concerning the US-Iran tension and the latest statement from the White House Economic Adviser Larry Kudlow, which dims the US-China trade optimism, might also be considered favoring sellers.
Crude oil prices were on the rise during yesterday’s session breaking to the upside and printing a high of $54.14 per barrel after picking up some momentum. The price is currently trading just above the $53.77 resistance level with the momentum being bullish. We will be focusing on the continuation of the correction with the $54.42 resistance level on our watch with a possible consolidation above it.
Support: 53.77/ 53.26
Resistance: 54.42/ 55.06