- US Oil has pauses its five-day winning streak, retraces back below $ 68 mark.
- Latest US tariffs on the Chinese imports intensified trade war fears, dampening the demand for oil.
- US Oil fades optimism led by a drawdown in the US crude stockpiles.
- EIA data on Wednesday showed that US commercial crude oil inventories fell by 5.8 million barrels in the week to Aug. 17 to 408.36 million barrels.
- Price action finds stiff resistance at 55-EMA at 68.15. Break above targets 50-DMA at 69.
- On the flipside, we see strong support at 110-EMA, 67.17, weakness likely on break below. Scope then for retest of 200-DMA.
- Focus now shifts to the US durable goods and rigs count data due Friday for further impetus.
- Technical indicators are turning slightly bullish. Breakout at 50-DMA could see further upside.
Support levels - 67.49 (21-EMA), 66.83 (5-DMA), 64.88 (200-DMA), 62.57 (38.2% Fib)
Resistance levels - 68.15 (55-EMA), 69 (50-DMA)
FxWirePro Currency Strength Index: FxWirePro's Hourly USD Spot Index was at 15.1578 (Neutral) at 0745 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.
