WTI stays depressed below $47.00 even as risks improve

WTI fades bounce off $46.62 while printing mild losses.
US dollar stays depressed even as policymakers reach closer to the covid stimulus.
Worsening virus conditions, lack of major data/events probe energy traders near multi-day high.

Anil Panchal FXStreet

WTI drops to $46.71, down 0.05% intraday, during Monday’s Asian session. The energy benchmark keeps Friday’s losses amid the fresh coronavirus (COVID-19) woes emanating from the US and Europe while paying a little heed to the recent risk-on mood. Also should have pleased the black gold traders is the US dollar index (DXY) weakness.

With the record infections and the virus-led death toll, local lockdowns are back into fashion in the US. Also portraying the COVID-19 woes are Germany’s extension of activity restrictions and the Japanese government’s consideration, as per the Kyodo News, to keep Tokyo and Nagoya out from travel subsidies.

Also challenging the black gold could be Friday’s increase in the Baker Hughes US Oil Rig Count from 246 to 258. Furthermore, the surprise jump in the EIA Crude Oil Stocks Change, to 15.189M versus -0.679M prior, exerts additional downside pressure on the WTI oil.

On the contrary, risk-on mood, mainly backed by hopes of US covid stimulus and vaccine news, coupled with the US dollar’s weakness, should have challenged the oil sellers. The DXY drops 0.15% intraday to 90.81 by press time.

Looking forward, oil traders will keep their eyes on the risk catalysts and the US dollar weakness. Among them, the worsening of the COVID-19 can have extra negatives for the WTI.

Technical analysis

An eight-day-old ascending support line, at $45.70 now, offers nearby strong support. Unless breaking the same, oil traders can target March’s top near $48.75.

Additional important levels

Overview
Today last price	46.74
Today Daily Change	-0.01
Today Daily Change %	-0.02%
Today daily open	46.75

Trends
Daily SMA20	44.6
Daily SMA50	41.68
Daily SMA100	41.32
Daily SMA200	36.65

Levels
Previous Daily High	47.43
Previous Daily Low	46.5
Previous Weekly High	47.85
Previous Weekly Low	45.1
Previous Monthly High	46.31
Previous Monthly Low	33.85
Daily Fibonacci 38.2%	46.86
Daily Fibonacci 61.8%	47.07
Daily Pivot Point S1	46.35
Daily Pivot Point S2	45.96
Daily Pivot Point S3	45.42
Daily Pivot Point R1	47.28
Daily Pivot Point R2	47.82
Daily Pivot Point R3	48.21

Author

Anil Panchal

FXStreet

Anil Panchal has nearly 15 years of experience in tracking financial markets. With a keen interest in macroeconomics, Anil aptly tracks global news/updates and stays well-informed about the global financial moves and their implications.

EUR/USD: US Dollar to remain pressured until uncertainty fog dissipates

Unimpressive European Central Bank left monetary policy unchanged for the fifth consecutive meeting. The United States first-tier employment and inflation data is scheduled for the second week of February. EUR/USD battles to remain afloat above 1.1800, sellers moving to the sidelines.

GBP/USD softens to near 1.3600 as BoE hints further rate cuts

The GBP/USD pair loses ground to near 1.3610 during the early Asian session on Monday. The Pound Sterling softens against the Greenback amid growing expectations of the Bank of England’s interest-rate cut. Traders will take more cues from the Fedspeak later on Monday.

Gold eyes acceptance above $5,000, kicking off a big week

Gold is consolidating the latest uptick at around the $5,000 mark, with buyers gathering pace for a sustained uptrend as a critical week kicks off. All eyes remain on the delayed Nonfarm Payrolls and Consumer Price Index data from the United States due on Wednesday and Friday, respectively.

Top Crypto Gainers: Aster, Decred, and Kaspa rise as selling pressure wanes

Altcoins such as Aster, Decred, and Kaspa are leading the broader cryptocurrency market recovery over the last 24 hours, as Bitcoin holds above $70,000 on Monday, up from the $60,000 dip on Thursday.

Weekly column: Saturn-Neptune and the end of the Dollar’s 15-year bull cycle

Tariffs are not only inflationary for a nation but also risk undermining the trust and credibility that go hand in hand with the responsibility of being the leading nation in the free world and controlling the world’s reserve currency.

Bitcoin, Ethereum and Ripple consolidate after massive sell-off

Bitcoin, Ethereum, and Ripple prices consolidated on Monday after correcting by nearly 9%, 8%, and 10% in the previous week, respectively. BTC is hovering around $70,000, while ETH and XRP are facing rejection at key levels. Traders should be cautious: despite recent stabilization, upside recovery for these top three cryptocurrencies is capped as the broader trend remains bearish.