Crude Oil Prices Aim Below $46 After Hitting 3-Week Low

Talking Points:

  • Crude oil prices eye support subsequent $46 after pointy selloff
  • Gold prices range-bound notwithstanding risk-driven yields decline
  • UofM, CFTC and Baker Hughes information competence tumble on deaf ears

Crude oil prices noted time on Thursday as a peace in top-tier news upsurge authorised a WTI benchmark to digest waste following a prior day’s fireworks. The batch of scheduled eventuality risk stays tame by a finish of a week, with CFTC futures positioning information and Baker Hughes supply count statistics due to cranky a wires. That competence make for a consolidative tinge until uninformed provender emerges subsequent week.

Competing influences triggered by a unwinding of a “Trump trade” left gold prices range-bound. Stocks swooned as certainty in a US President’s ability to govern a pro-growth bulletin fizzled. Treasury bond yields followed, that might’ve been approaching to boost a yellow metal. A visual rebound in a US Dollar after Wednesday’s plunge dashed those hopes however.

A sign of US consumer confidence from a University of Michigan is now in focus. That is approaching to uncover that view softened in Aug after shifting to a nine-month low in July. An outcome echoing extended alleviation in US mercantile news-flow given mid-June competence have bolstered Fed rate travel prospects underneath normal resources though a risk-off mood prevalent around markets competence make that unlikely.

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GOLD TECHNICAL ANALYSISGold prices continue to float subsequent trend-defining insurgency in a 1295.46-1300.46 area (double top, 38.2% Fibonacci expansion). A daily tighten above that opens a doorway for a exam of a 50% spin during 1310.74. Alternatively, a spin subsequent 1267.21 (August 15 low, trend line) exposes a 38.2% Fib retracement during 1258.82.

Crude Oil Prices Aim Below $46 After Hitting 3-Week Low

Chart combined regulating TradingView

CRUDE OIL TECHNICAL ANALYSISCrude oil prices paused to digest waste after attack a lowest spin in 3 weeks. Near-term support is during 45.38, a 38.2% Fibonacci expansion, with a daily tighten subsequent that exposing a 50% spin during 43.83. Alternatively, a pierce behind above a 23.6% Fib during 47.30 targets 48.48 (14.6% expansion, trend line).

Crude Oil Prices Aim Below $46 After Hitting 3-Week Low

Chart combined regulating TradingView

— Written by Ilya Spivak, Currency Strategist for DailyFX.com

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