FxWirePro: U.S. oil buoyed by OPEC supply cuts, hits new 18-week highs at 59.33, bias bullish

U.S. oil chart - Trading View 

• U.S. oil is trading 0.52% higher on the day, at 59.25 at 0855 GMT.
   
• Price nears 2019 highs as OPEC's extension of supply cuts keeps markets buoyed.
   
• OPEC on Monday canceled its planned meeting in April, thereby extending supply cuts first initiated in January. 
   
• Price action has bounced off 55-EMA with a 'hammer' formation. We see weakness only below 55-EMA.
   
• Technical indicators have turned bullish. Decisive break above 110-EMA has raised scope for further gains.
   
• The pair eyes 50% Fib at 59.61. Close above 55-W EMA to see further upside.
   
• Focus now on the Energy Information Administration (EIA) US inventory data scheduled for release in the US session. 
   
• Bullish momentum may stall if the US oil output continues to surge and the EIA reports a big US inventory build up.

Support levels - 58.68 (5-DMA), 56.72 (110-EMA), 55.53 (38.2% Fib)

Resistance levels - 59.61 (50% Fib), 60, 61.97 (200-DMA)

For details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.