FxWirePro: US Oil fails to hold above daily cloud, slips below 100-DMA, bias lower

• US Oil fails to hold above daily cloud, slips below 100-DMA at 68.83.
   
• Firmer US dollar and waning fears over storm Gordon knock-off the prices.
   
• Price is extending correction from eight-week highs at 71.37, in the red for the 2nd straight session.
   
• Technical indicators are turning bearish. Stochs are on verge of rollover from overbought levels.
   
• Price action has broken below 1H 200-SMA. Decisive break below 100-DMA to see further drag lower. Test of 200-DMA then likely.
   
• Immediate focus shifts to the American Petroleum Institute’s (API) weekly fuel supply report due at 2030 GMT.

Support levels - 68.83 (100-DMA), 68.48 (55-EMA), 68, 67.41 (23.6% Fib)

Resistance levels - 69, 69.32 (200-DMA), 69.64 (5-DMA), 70

Recommendation: Stay short on close below 100-DMA, target 68.48/ 68/ 67.41

FxWirePro Currency Strength Index: FxWirePro's Hourly USD Spot Index was at 27.0931 (Neutral) at 1045 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.