FxWirePro: WTI extends declines on easing supply tensions, tests 55-EMA at 68.47, bias lower

• WTI is extending retreat from multi-week highs at 71.37 as supply tensions ease.
   
• API inventory flow data added to the downside pressure, showing inventories fell a relatively modest 1.17 million barrels last week.
   
• Immediate focus shifts to EIA inventory flow data for further direction. Economists expect a draw of 2.38 million barrels. 
   
• Crude oil has broken below 100-DMA after prices failed to hold above daily cloud.
   
• Price is in the red for the 3rd straight session. Technical indicators are turning bearish. Stochs show rollover from overbought levels.
   
• Price action has broken below 1H 200-SMA. Bears now target 23.6% Fib at 67.41 ahead of 200-DMA.
   
• Alternatively, retrace above 5-DMA could see upside continuation. 

Support levels - 68.47 (55-EMA), 68, 67.41 (23.6% Fib), 65.47 (200-DMA)

Resistance levels - 68.83 (100-DMA), 69, 69.29 (5-DMA), 70

Call update: Our previous call (https://www.econotimes.com/FxWirePro-US-Oil-fails-to-hold-above-daily-cloud-slips-below-100-DMA-bias-lower-1424372) has hit TP1.

Recommendation: Book partial profits at lows. Hold for further weakness.

FxWirePro Currency Strength Index: FxWirePro's Hourly USD Spot Index was at 5.79726 (Neutral) at 0500 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.