FxWirePro: WTI consolidates break below 200-DMA, eyes 38.2% Fib at 63.59

US oil chart on Trading View used for analysis

• Oil slips lower after Saudi promised to supply the Iranian shortfall. 
   
• WTI fell below 200 DMA for the first time in more than a year as a result.
   
• Further American Petroleum Institute said on Tuesday U.S. crude stocks had risen by 9.9 million barrels - more than forecast. 
   
• Focus now on the U.S. government's supply report (EIA data) which is due at 1430 GMT.
   
• Technical studies are bearish, momentum with the bears. Scope for further weakness.
   
• Next major bear target lies at 63.59 (38.2% Fib). Retrace above 200-DMA negates near-term bearishness.

Support levels - 64.45 (Aug 16 low), 63.59 (38.2% Fib)

Resistance levels - 67.44 (200-DMA), 68.10 (5-DMA)

Recommendation: Good to stay short on upticks, SL: 67.50, TP: 66/ 65.35/ 64.50

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