Two trades to watch: WTI crude oil, EURUSD

Fiona Cincotta March 4, 2021 3:28 PM

WTI rises ahead of OPEC+ meeting. EUR/USD hovers around 1.2050 with all eyes on Fed Powell's speech.

Energy 14

US crude oil rises ahead of OPEC

Oil prices are on the rise for a second straight days= on the possibility that OPEC+ may decide against increasing output.

OPEC are reportedly considering rolling over production cuts into April given that he recovery in demand remains fragile.

EIA data revealed a record 21.5 million barrel build owing to the Texas deep freeze

Where next for crude oil prices?

WTI fell out of its month long ascending channel at the start of the week. 

WTI has pushed back above its 20 sma at 60.30 on the daily chart after briefly dropping below the support in the previous session. However, a move back over the lower band of the ascending channel at 62.10 is needed to convince the bulls. The RSI is supportive of further gains.

Failure to break back into the channel could support the formation of a topping patter and could see the bears target support at 60.00 the 20 sma and key psychological level before eyeing horizontal support at 5875. Abreak below 57.00 low 12th Feb could see the bearish move gain momentum.

What factors influence the price of oil

Learn more about trading oil



EUR/USD hovers around 1.2050 ahead of Jerome Powell

US treasury bond yields are back on the rise at 1.48% lifting the USD.

Jerome Powell is due to speak at 17:00 UTC. So far Powell has shrugged off higher yields and rising inflation expectations as a sign of better growth prospects.

However, after Brainard’s comments regarding the pace of the move in yields there are growing expectations that the Fed could step in.

Eurozone retail sales & US initial jobless gains also in focus.

Where next for EUR/USD?

EUR/USD has picked up off the overnight low of 1.2043 however remains on the back foot -0.05% and below its 20 & 50 sma suggesting a bearish bias which is supported by bearish MACD signals. 

Sellers may wait for a move below $1.20 key psychological level before opening a position. The pair could then test support at the  yearly low 1.1950 before declines accelerate towards support at 1.19.

On the upside 1.21 the 20 sma and round number offers strong resistance. A break-through here could open the door to 1.2145 the 50 sma before bulls look towards 1.22.

Learn more about trading forex.

TAGS:

More from Oil

Disclaimer

This report is intended for general circulation only. It should not be construed as a recommendation, or an offer (or solicitation of an offer) to buy or sell any financial products. The information provided does not take into account your specific investment objectives, financial situation or particular needs. Before you act on any recommendation that may be contained in this report, independent advice ought to be sought from a financial adviser regarding the suitability of the investment product, taking into account your specific investment objectives, financial situation or particular needs.

GAIN Capital Singapore Pte. Ltd., may distribute reports produced by its respective foreign entities or affiliates within the GAIN Capital group of companies or third parties pursuant to an arrangement under Regulation 32C of the Financial Advisers Regulations. Where the report is distributed to a person in Singapore who is not an accredited investor, expert investor or an institutional investor (as defined in the Securities Futures Act), GAIN Capital Singapore Pte. Ltd. accepts legal responsibility to such persons for the contents of the report only to the extent required by law. Singapore recipients should contact GAIN Capital Singapore Pte. Ltd. at 6826 9988 for matters arising from, or in connection with the report.

In the case of all other recipients of this report, to the extent permitted by applicable laws and regulations neither GAIN Capital Singapore Pte. Ltd. nor its associated companies will be responsible or liable for any loss or damage incurred arising out of, or in connection with, any use of the information contained in this report and all such liability is hereby expressly disclaimed. No representation or warranty is made, express or implied, that the content of this report is complete or accurate.

GAIN Capital Singapore Pte. Ltd. is not under any obligation to update this report.

Trading CFDs and FX on margin carries a high level of risk that may not be suitable for some investors. Consider your investment objectives, level of experience, financial resources, risk appetite and other relevant circumstances carefully. The possibility exists that you could lose some or all of your investments, including your initial deposits. If in doubt, please seek independent expert advice. Visit cityindex.com.sg for the complete Risk Disclosure Statement.