- Supply concerns return to haunt oil markets as Saudi Arabia temporarily suspends shipments through Red Sea lane.
- Further, easing tensions over a possible EU-US trade war continues to lift commodity markets.
- EIA data this wee showed US commercial crude oil inventories decreased by 6.1 million barrels from previous week, adding to upside pressure.
- WTI oil price has paused upside after 3 successive session's of gains, hovers around 21-EMA.
- Price action holds above daily cloud and finds immediate support at 55-EMA at 69.04.
- Breakout at 21-EMA could see further upside, while on the other side, retrace below 55-EMA could drag the pair lower.
Support levels - 69.04 (55-EMA), 68.90 (5-DMA), 68.25 (cloud)
Resistance levels - 69.65 (21-EMA), 70, 70.15 (July 19 high)
FxWirePro Currency Strength Index: FxWirePro's Hourly USD Spot Index was at 70.032 (Neutral) at 0745 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.
