Free Trial
USDCAD TECHS

Consolidation Mode But Remains Bearish

AUDUSD TECHS

Fails To Hold Onto Thursday’s High

US

'Big Tech' Bill Goes To Senate

COMMODITIES

Oil Up For Fifth Week On Supply Disruption, Geopolitics

Real-time Actionable Insight

Get the latest on Central Bank Policy and FX & FI Markets to help inform both your strategic and tactical decision-making.

Free Access
Sign up now for free access to this content.

Please enter your details below and select your areas of interest.

  • In the past year, momentum on oil prices has been firm, mostly driven by the liquidity injection from central banks, the supply shortages and the investment forces (investors use oil as the best ‘inflation hedge').
  • However, the rising Covid uncertainty in recent weeks combined with the discovery of the new variant Omicron has resulted in significant consolidation in oil prices.
  • WTI front month futures contract is down over 10% since Thursday, and found support slightly below its 200DMA at 69.81 on Friday.
  • Selling pressures could remain elevated in the near term as more and more countries impose travel bans to prevent the spread of the virus.
  • Next support to watch on the downside stands at 65.63, which represents the 38.2% Fibo retracement of the 33.64 – 85.41 range.
  • On the topside, first resistance to watch stands at 74.36 (100DMA).

Source: Bloomberg/MNI