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FxWirePro- Crude oil Daily Outlook

 

WTI crude oil showed a minor sell-off on strong US dollar. It hit a low of $77.85 yesterday  and is currently trading at $78.35.

According to Energy Information Agency (EIA), US crude inventories increased by 3.7 million bbl for the week ending June 7th mainly due to strong imports , compared to a forecast of -1.2M bbls .

US CPI - weak (bullish for crude)

US Fed- Hawkish (Bearish for crude)

Major factors for crude oil price movement-

US dollar index (Bullish)- Negative  for Crude.

Major resistance - 105.50/107.

Major support- 104/103.

Geopolitical tension-  Escalalation of tension between Israel and Gaza ( positive for crude).

Ichimoku analysis (4- hour chart)

Tenken-Sen- $78.46

Kijun-Sen- $77.22

The immediate resistance is around $79.30. Any jump above the target of $79.67/$80/$80.55. On the lower side, near-term support is around $78.15. Any breach below will drag the commodity down to $77.50/$76.87/$76/$75.

It is good to sell on rallies  around $78.75-80 with SL around $80 for a TP of $75.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


 

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