FxWirePro: WTI consolidates Friday's gains, tightening supplies and dovish Fed likely to support upside

U.S. oil chart on Trading View used for analysis

• WTI consolidates Friday's gains, holds in a narrow range with session high at 55.43 and lows at 54.97.
   
• Tightening supplies and dovish Fed which will keep the USD subdues are likely to support prices higher.
   
• OPEC Jan output by the largest amount in two years and Russian oil output also declined to 11.38 million barrels per day in Jan.
   
• Further, Bakers Hughes data released on Friday showed the operating oil rigs in the US fell to their lowest in eight months.
   
• That said, US-China trade war concerns pose a risk to oil upside. Worsening negotiations could put pressure on prices.
   
• Technical studies are biased higher. Price action is on track to test next resistance at 110-EMA at 57.09. Break above cloud to see further gains.
   
• On the flipside, we see strong support at 55-EMA at 53.45, break below to see major weakness.

Support levels - 54.37 (5-DMA), 53.45 (55-EMA), 50.49 (23.6% Fib)

Resistance levels - 55.53 (38.2% Fib), 57.09 (110-EMA), 59.61 (50% Fib)

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