FxWirePro: US oil finds strong support at 200-DMA, stay short on break below

Refer US Oil chart on Trading View

• WTI plummets after EIA report increase in commercial crude oil inventories on Wednesday. 
   
• The weekly EIA report revealed that commercial crude oil inventories increased by 6.8 million barrels in the week ending August 10 more than expectations of a draw of 2.5 million barrels. 
   
• US oil is consolidating previous session's slump, bias remains bearish.
   
• Price action finds strong support at 200-DMA at 64.61, decisive break below will see further weakness.
   
• Scope then for test of 38.2% Fib at 62.57. Violation there could see further downside.
   
• Rejection at 200-DMA and retrace above 5-DMA at 66.33 could see minor upside.

Support levels - 64.61 (200-DMA), 63.62 (June 18 low), 62.57 (38.2% Fib) 

Resistance levels - 66.34 (5-DMA), 67.20 (110-EMA), 67.80 (21-EMA)

Recommendation: Good to go short on break below 200-DMA, target 64/ 63.65/ 63/ 62.60

FxWirePro Currency Strength Index: FxWirePro's Hourly USD Spot Index was at 17.8283 (Neutral) at 1215 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.