- US Oil is extending range trade at 50-DMA resistance at 69.22, break above will see further upside.
- Momentum studies are bullish. Stochs and RSI are sharply higher.
- Price action has bounced off 200-DMA and upside has paused at 50-DMA.
- Markets now await the American Petroleum Institute (API) weekly fuel stocks dats for further impetus.
- Breakout at 50-DMA will take the price to 70.40 levels ahead of 71.63.
- We see resumption of weakness on break below 21-EMA at 67.81.
Support levels - 68.44 (5-DMA), 68.21 (55-EMA), 67.81 (21-EMA)
Resistance levels - 69.22 (50-DMA), 70.04 (cloud base)
Recommendation: Good to go long on breakout at 50-DMA, target 70.40/ 71/ 71.60
FxWirePro Currency Strength Index: FxWirePro's Hourly USD Spot Index was at -72.2609 (Neutral) at 1300 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.
