Worries about progress in the US-China trade talks has led Oil prices lower in what appears to be a little confusing situation. China’s Vice Premier Liu He’s visit to Washington has been a major positive change for the US-China trade deal as leaders of both the economies have recently communicated optimism surrounding the progress and also upbeat about the result. However, President Trump expressed that several area are complicated to cover especially when it comes to technology and that they will not do it if it is not “great”. On the other hand, traders may concentrate on Friday’s Baker Hugh rig counts for the US in addition the NFP report after receiving some sluggish inventory by the EIA.
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