Two trades to watch: EUR/USD, WTI
Fiona Cincotta February 10, 2021 8:00 AM
EUR/USD holds 1.21 ahead of US CPI & Fed Powell. WTI rally stalls ahead of EIA data.
EUR/USD holds 1.21 ahead of US CPI & Powell
WTI rally stalls, EIA data in focus
Whilst fundamentals support further upside, after 7 straight days of gains the rally in WTI is starting to look tired.
The bullish narrative of more US stimulus, rapid vaccine rollout helping a strong global recovery in demand & OPEC+ keeping market conditions tight.
API posted a surprise 3.5 million barrel draw versus an expected 1 million barrel build. EIA data awaited later today.
WTI technical analysis
WTI has had a solid run up gaining over 11% this month in its recent bullish run.
WTI shoot up from $57.27 on Tuesday to $58.50 which is proving to be a tough nut to crack. With the RSI still teetering on overbought territory and multiple long wicks the latest push higher in WTI is showing signs of fatigue and a price pull back, at least in the short term could be on the cards.
The ascending 20 sma at $57.67 offers immediate support and is the level to watch. The 20 SMA support has been unbroken across February. A breach here could negate the current near term uptrend and bring 55.65 the 100 sma into target.
On the upside, $58.50 is offering strong resistance ahead of 59.00 round number and $60 the key psychological level is the target for the bulls.
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