WTI struggles to cheer USD weakness, drops 1.40% in Asia

by

WTI seesaws around $33.35/40 during the early Friday’s trading session. The energy benchmark seems to fail in cheering the US dollar weakness amid fears of the US-China tussle. Even so, the barrel of the black gold so far eyes 76% gains during May.

Increasing hopes of the global economic restart and the coronavirus (COVID-19) cure seems to have initially put a bid on the oil prices. However, political/trade tension between the world’s two largest economies seems to have recently weighed on the quote.

Recently, US President Donald Trump called for China conference on 18:00 Friday, which in turn dragged the risk sentiment amid the increasing odds of further sanctions on Beijing.

With that background, US 10-year Treasury yields dropped 3.8 basis points (bps) to 0.667% whereas the US dollar index (DXY) refreshes the 10-week low to 98.18.

Moving on, the weekly prints of the Baker Hughes Rig Count, prior 237, as well as Chicago PMI and Michigan Consumer Sentiment Index, could offer intermediate moves to the energy benchmark. Though major attention will be given to how US President Trump fights against China’s rush secure more powers in Hong Kong.

Technical analysis

While the recent run-up seems to push buyers towards the monthly top of $34.90 and $35.00 round-figure, further upside could be restricted amid overbought RSI conditions. Alternatively, sellers are less likely to enter unless witnessing a break below the confluence of 21 and 50-day EMA near $30.00-29.90.

Additional important levels

Overview
Today last price 33.31
Today Daily Change -0.47
Today Daily Change % -1.39%
Today daily open 33.78

 

Trends
Daily SMA20 29.02
Daily SMA50 25.57
Daily SMA100 37.62
Daily SMA200 47.31

 

Levels
Previous Daily High 34.34
Previous Daily Low 31.33
Previous Weekly High 34.74
Previous Weekly Low 29.62
Previous Monthly High 32.21
Previous Monthly Low 8.46
Daily Fibonacci 38.2% 33.19
Daily Fibonacci 61.8% 32.48
Daily Pivot Point S1 31.96
Daily Pivot Point S2 30.14
Daily Pivot Point S3 28.95
Daily Pivot Point R1 34.97
Daily Pivot Point R2 36.16
Daily Pivot Point R3 37.98