FxWirePro: US Oil rangebound below 55-EMA, turns cautious ahead of EIA inventories data

• WTI was buoyed overnight as API data showed that US crude inventories decline again.
   
• According to the American Petroleum Institute (API), crude inventories in the US fell 3.2 million barrels last week.
   
• The drop was larger than expected, markets were expecting a drawdown of only 2.3 million barrels.
   
• WTI hit highs of 69.02 before paring some gains to close at 68.64. 
   
• Price opened Wednesday's trade with a bullish gap, but markets remains caution ahead of EIA inventories data.
   
• The pair is trading in a narrow range with the day's high at 68.90 and low at 68.49.
   
• Price remains sandwiched between 55 and 110 EMAs. Breakout will provide clear directional bias.

Support levels - 68.50 (5-DMA), 68, 67.01 (110-EMA)

Resistance levels - 69 (55-EMA), 69.63 (21-EMA), 70

FxWirePro Currency Strength Index: FxWirePro's Hourly USD Spot Index was at -136.804 (Neutral) at 1015 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.