With the broad US Dollar weakness fueling commodities WTI bounces off six-day low of $54.4 per barrel to $55.30 as of this morning. While markets seem largely ignored higher than anticipated inventory data after the US Federal Reserve’s latest monetary policy meeting, sluggish prints of China’s official activity numbers also have little impact during today’s early session. The reason could be traders’ dovish outlook concerning the United States Fed’s three back-to-back rate cuts and anticipation of downward price pressure. The same managed to conquer the Fed Chairman’s efforts to talk down the easy money policy. Furthermore, renewed tension between the US and Turkey, after the US lawmakers pushed for sanction concerning offensive in Syria, also strengthens the buyers.
Crude oil prices lost traction as expected during the first half of yesterday’s session to print a low of $54.4 per barrel before bouncing back up. The price is currently trading just above the $55.3 level with the momentum refraining towards the bullish territory. We will be focusing on the upside especially the $55.92 resistance level, however, traders should be careful from the trend line presented on the RSI chart that has been violated to the downside and that could drop the momentum.
Support: 55.05/ 54.42
Resistance: 55.92/ 56.27