WTI Slips Slightly on Stronger US Dollar, Still Holds Firm.
WTI slips slightly on a stronger US Dollar, but holds near the $63.00 mark
FUNDAMENTAL OVERVIEW:
- Oil pulls back after a 3.5% rally over the past two sessions.
- A rebound in the US Dollar from six-week lows is pressuring crude prices, though geopolitical tensions and Canadian wildfires are helping limit the downside.
Oil has pared back some of its recent gains in recent sessions, pressured by a stronger US Dollar, yet it continues to hover near six-week highs above $63.00 reached on Tuesday.
The US Dollar Index rose around 0.7%, supported by upbeat US job openings data, leading to a moderate pullback in crude prices.
However, the downside remains limited due to a combination of geopolitical concerns. Ongoing tensions between Russia and Ukraine show little progress toward peace, and stalled US-Iran nuclear talks could delay the return of Iranian oil supply to global markets.
Additionally, Canadian wildfires have disrupted around 7% of the country’s oil output—over 344,000 barrels per day—fanning supply fears.
Meanwhile, Eurozone inflation fell below the ECB’s 2% target, increasing the likelihood of further monetary easing, which could boost regional growth and oil demand.
CRUDE OIL TECHNICAL ANALYSIS DAILY CHART:
Technical Overview:
Crude Oil is trading within a up channel.
Crude Oil is moving above 20&50 Moving Averages (SMA).
The Relative Strength Index (RSI) is in the Buying Zone, while the Stochastic oscillator suggests a Positive trend.
Immediate Resistance level: 63.70
Immediate support level: 61.85
HOW TO TRADE CRUDE OIL
Crude Oil experienced sustained downward pressure before stabilizing and entering a prolonged consolidation phase. It has since reversed to the upside and is currently trading higher, nearing a key resistance zone. A successful breakout and sustained move above this level could pave the way for further bullish momentum.