FxWirePro: US oil recovers from lows after gap down open, awaits Saudi Arabia's decision on production increase

• US oil retreated from Friday highs at 74.43 and is currently trading at 73.24 levels.
   
• The pair opened this week's trade with a bearish gap, hit session lows at 72.61.
   
• Oil prices dropped on Trump's declaration of agreement from Saudi Arabia that production needs to increase.
   
• Trump's declaration was premature, markets still await clarification on whether or not Saudi Arabia could decide to abandon OPEC limits.
   
• Meanwhile, oil has retraced from lows and is currently trading above 73 handle.
   
• Technical indicators on daily charts support upside. Price has broken out of daily cloud.
   
• However, caution advised as Stochs have entered overbought zone and RSI has shown retrace from near overbought levels.
   
• We see major resistance at 73.85 (strong trendline). Any further upside only on break above. 
   
• Immediate support lies at 5-DMA at 72.71. Decisive break below could  see some weakness.

Support levels - 72.71 (5-DMA), 71.78 (1H 110-EMA)
Resistance levels - 73.85 (trendline), 74