Crude oil price fell slightly on Wednesday, below $60 a barrel because of increasing trade tensions between China and the United States.
7 August 2019, OctaFX – The price of crude oil declined today as investors continued to worry about demand. They believe that the ongoing trade war between the US and China will affect demand. This is mostly because of the huge differences between the US and China.
Donald Trump is said to be serious about tariffs while China’s Xi believes it is in the interest of the country not to give in to Trump. Late yesterday, data from the American Petroleum Institute (API) showed that inventories declined by more than 3.4 million barrels in the past week. Today, investors expect data to show that inventories declined by 2.8 million barrels.
Crude oil price technical forecast
The XBRUSD pair declined to a low of 58.25, which was the lowest level since January this year. On the daily chart, the pair’s current price of 58.60 is along the 23.6% Fibonacci Retracement level. The price is also below the 50-day (blue) and the 25-day (red) exponential moving averages.
The 14-day RSI is slightly above the oversold level of 30 while the accumulation/distribution indicator is moving lower. Today, the likely scenario is that the pair will cross the important support of 58.50 and continue moving lower. The alternate scenario is where the pair moves higher to above 59.00.
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