WTI bears look for a downside continuation for the days ahead

WTI bears are moving in at a critical juncture.
A break of horizontal support leaves the downside exposed.

Ross J Burland FXStreet

West Texas Intermediate is higher on the day so far, up over 2.45% at the time of writing, having ranged between a low of $76.03 and $79.61 so far. The price has been consolidating at the top of a channel and the prior day's short squeeze. Risk markets were soft amid light activity as month-end approaches.

Meanwhile, West Texas Intermediate was bid on the hopes China is easing its strict zero-Covid policies while OPEC+ decided to meet virtually for its Dec.4 meeting to set production quotas. The good news came for markets when China's government announced that it will boost Covid-19 vaccination while stepping back from its quarantine policies.

Elsewhere, and despite market rumours, OPEC has not indicated it plans further cuts in its meeting as European sanctions on Russian oil imports take effect on December 5. Nevertheless, negotiations on a price cap for Russian oil go on.

Analysts at ANZ Bank said that ''Germany warned it can’t rule out temporary supply bottlenecks when a ban on imports on Russian crude starts next month. OPEC also appears to be reducing output in line with its agreement to cut production.''

For the week ahead, the focus is on Federal Reserve Chairman Jerome Powell’s address on the economy and the US labour market in Friday's Nonfarm Payrolls event.

WTI technical analysis

As illustrated, the price is meeting the channel top, on the front side of the trendline resistance, breaking horizontal structure and posied for a downside continuation.

Author

Ross J Burland

FXStreet

Ross J Burland, born in England, UK, is a sportsman at heart. He played Rugby and Judo for his county, Kent and the South East of England Rugby team.

EUR/USD holds losses near 1.1850 as US, China holidays keep trade muted

EUR/USD opens the week on a softer note, trading near 1.1860 during the Asian session on Monday. Activity is likely to remain muted, with United States markets closed for the Presidents’ Day holiday, while Mainland China is also shut for the week-long Lunar New Year break.

GBP/USD flat lines as traders await key UK macro data and FOMC minutes

The GBP/USD pair kicks off a new week on a subdued note and oscillates in a narrow range, just below mid-1.3600s, during the Asian session. Moreover, the mixed fundamental backdrop warrants some caution for aggressive traders as the market focus now shifts to this week's important releases from the UK and the US.

Gold remains below $5,050 despite Fed rate cut bets, uncertain geopolitical tensions

Gold edges lower after registering over 2% gains in the previous session, trading around $5,030 per troy ounce during the Asian hours on Monday. However, the non-interest-bearing Gold could further gain ground following softer January Consumer Price Index figures, which reinforced expectations that the Federal Reserve could cut rates later this year.

Top Crypto Losers: Dogecoin, Zcash, Bonk – Meme and Privacy coins under pressure

Meme coins such as Dogecoin and Bonk, alongside the privacy coin Zcash (ZEC), are leading the broader market losses over the last 24 hours. DOGE, ZEC, and BONK ended their three consecutive days of recovery with a sudden decline on Sunday, as crucial resistance levels capped the gains. Technically, the altcoins show downside risk, starting the week under pressure.

Global inflation watch: Signs of cooling services inflation

Realized inflation landed close to expectations in January, as negative base effects weighed on the annual rates. Remaining sticky inflation is largely explained by services, while tariff-driven goods inflation remains limited even in the US.

Ripple Price Forecast: XRP potential bottom could be in sight

Ripple edges up above the intraday low of $1.35 at the time of writing on Friday amid mixed price actions across the crypto market. The remittance token failed to hold support at $1.40 the previous day, reflecting risk-off sentiment amid a decline in retail and institutional sentiment.