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FxWirePro: US oil pauses upside at major trendline resistance at 75.25, weakness could extend on spinning top formation

  • US oil pauses upside at major trendline resistance at 75.25, slips below 74 levels.
     
  • We evidence 'Spinning Top' formation at highs which raises scope for weakness.
     
  • Bullish bias still intact, technical analysis is showing no major signs of retracement.
     
  • That said, momentum indicators have approached overbought levels, so caution advised.
     
  • US Oil marked in a new high for 2018 at 75.24 on Tuesday's trade and is currently trading at 73.70. 
     
  • Focus now on the EIA weekly crude supplies data due to be reported tomorrow for fresh direction.
     
  • Decisive break above 75 will see strong resistance at 75.25 (trendline). Break above 75.25 can take the pair higher to 76.49 (61.8% Fib level).
     
  • On the flipside, 1H 110-EMA is strong support at 73.30, break below will see some weakness.

Call update: Our previous call (https://www.econotimes.com/FxWirePro-US-Oil-tops-73-a-barrel-highest-since-November-2014-1393934) has hit TP2.

FxWirePro Currency Strength Index: FxWirePro's Hourly USD Spot Index was at -39.4729 (Neutral) at 1200 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex
 

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