Crude oil price surged during yesterday’s session and continue to do so this morning, adding more than 1.62% to its value as it broke above the $57 level.
30 July 2019, GKFX – WTI (futures on Nymex) extends its four-day winning-streak on Tuesday, as the sentiment remains lifted by a likely Fed rate cut on Wednesday, the first-rate cut by the US central bank in a decade.
Focus on fed
Markets believe that the likely Fed rate cut would help boost the global economic growth and in turn support fuel demand growth in the second half of this year. The US Fed begins its two-day meeting later on Tuesday, with the rate cut decision due to be announced on Wednesday.
Markets also remain hopeful ahead of the US-China trade talks, as the latest report by the Global Times cites that a partial trade deal could be reached between the two countries later this year. A trade deal would ease global growth concerns and render oil-positive.
Further, supply disruption risks, with Middle East tensions around the Strait of Hormuz, still remaining high, lend support to the latest move higher in the black gold. However, the dollar gains could limit further upside, as the focus now shifts towards the US American Petroleum Institute (API) weekly crude stockpiles data for the next direction on the prices.
Crude oil price technical analysis
“Technically, the price has been capped by the 200-day moving average but a break there will open risk towards 57.40 and the 50-day moving average which guards the 20-week moving average. Bulls will then look to the 60 handle and double top in the 60.80s. On the downside, a break of support located on the rising support line of the channel at 55.80, opens 54.60, (61.8% Fibo.),” FXStreet’s Analyst, Ross Burland notes.
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