Coiling In Asia, Key Themes Assessed

WTI & Brent are essentially unchanged as we move towards London hours, with both holding tight ranges during the Asia-Pac session amid diminished liquidity owing to the ongoing LNY holiday in China and a national holiday in Australia.

• That seemed to leave traders time to focus on the well-documented discussion points observed in the early weeks of ’23, namely the Chinese demand question and the Fed outlook, along with its feedthrough into the value of the USD.
• Technically, key short-term resistance for WTI is located at $82.66, the Jan 18 high. Clearance of this hurdle would reinstate the recent bullish theme and expose $83.14, the Dec 1 high and $85.33, a Fibonacci retracement. On the downside, the support to watch lies at $78.45, the Jan 19 low. A break of this level would signal a potential reversal.