FxWirePro: US oil extends sideways grind below $74 a barrel, trade tensions dent risk appetite

• Renewed trade tension are taking the edge off of risk appetite through broader markets.
   
• US oil extends sideways grind below $74 a barrel, but bias still bullish.
   
• Price were slightly lifted overnight on a larger-than-expected draw on US fuel reserves.
   
• According to data released by the American Petroleum Institute (API), a 6.8 million drawdown in oil stocks were seen. 
   
• WTI closed the slightly bullish gap open today and is currently trading 0.66% lower on the day at 73.64.
   
• Momentum strong but indicators are at overbought levels which raises scope for reversal.
   
• Further a bearish divergence from price action on Stochs raises scope for downside.
   
• Upside finds stiff resistance at strong trendline resistance at 75.60, upside only on break above.
   
• On the flipside, declines till 21-EMA at 71.47 cannot be ruled out. Further weakness only on break below.

Support levels - 73. 72.17 (July 6 low), 71.47 (21-EMA)

Resistance levels - 73.75 (5-DMA), 74, 75, 75.60 (trendline)