FxWirePro: U.S. oil trades rangebound, souring risk sentiment caps upside

U.S. oil chart - Trading View 

• U.S. oil is trading in a narrow range with session highs at 58.65 and lows at 57.98.
   
• Price is holding break above 110-EMA, technical bias still bullish.
   
• Bulls cheered a bigger-than-expected drop in the US EIA weekly crude stockpiles.
   
• Also, upbeat remarks from the Iraqi Oil Minister Al-Luaibi could also underpin prices.
   
• Increased expectations of tightening oil markets added to the bullish tone. U.S. crude oil production dipped by 100,000 bpd to 12 million bpd.
   
• Price action has bounced off 55-EMA with a 'hammer' formation. We see weakness only below 55-EMA.
   
• Next major resistance above 110-EMA lies at 50% Fib at 59.60. Retrace below 110-EMA will see test of 55-EMA. Break below 55-EMA can see dip till daily cloud.

Support levels - 56.53 (110-EMA), 55.53 (38.2% Fib), 54.85 (55-EMA)

Resistance levels - 57.85 (Mar 1 high), 59.61 (50% Fib), 61.97 (200-DMA)

Call update: Our previous call (https://www.econotimes.com/FxWirePro-US-oil-bounces-of-55-EMA-with-Hammer-formation-stay-long-on-close-above-110-EMA-1508943) has hit TP1. 

Recommendation: Book partial profits at highs. Hold for further upside.

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