Crude Oil Prices Hit 6-Month Low as Liquidation Heats Up

Talking Points:

  • Crude oil cost dump to six-week low as selloff heats up
  • Gold prices continue to tumble in FOMC assembly aftermath
  • US jobs, supply count and oil spec positioning information ahead

Crude oil prices continue to penetrate – attack a six-month low in Asian trade – after pang a largest daily decrease given early March. The dump in a benchmark WTI futures agreement was accompanied by a top volume in dual months.

Investors’ certainty in a ability of an OPEC prolongation cut intrigue to equivalent flourishing pitch supply has been eroding given mid-April. Liquidation accelerated after EIA reported that, among other things, US outlay rose for an 11th uninterrupted week. That’s a longest strain of back-to-back gains in over 4 years.

More of a same might be in store as Baker Hughes supply count data as good as a latest collection of CFTC suppositional positioning statistics come opposite a wires. Another parasite aloft in a series of active descent sites and signs of fast unwinding of net-long bearing might strengthen offered pressure.

Gold prices retreated to a seven-week low as markets continued to reckon with a outcome of a FOMC process announcement. The spotlight now turns to April’s US practice report. This is approaching to uncover payrolls enlargement picked adult final month after attack a 10-month low in March.

The Fed has discharged a first-quarter downturn in US enlargement as “transitory”, signaling that it’s ardour for rate hikes is undiminished. This means that anything bashful of a thespian beating is doubtful to offer a yellow steel most of a durability lifeline.

What will expostulate wanton oil and bullion cost trends by mid-year? See a forecasts to find out!

GOLD TECHNICAL ANALYSISGold prices have suffered a largest two-day selloff given mid-December 2016. From here, a daily tighten next a draft rhythm indicate during 1218.90 opens a doorway for a plea of a 38.2% Fibonacci enlargement during 1199.07. Alternatively, a pierce behind above support-turned-resistance during 1241.50 paves a approach for a retest of a 14.6% turn during 1258.62.

Crude Oil Prices Hit 6-Month Low as Liquidation Heats Up

Chart combined regulating TradingView

CRUDE OIL TECHNICAL ANALYSISCrude oil prices are contrast next support during 45.33, a 61.8% Fibonacci retracement. Confirmation of a mangle on a daily shutting basement opens a doorway for a plea of a 76.4% turn during 43.00. Alternatively, a annulment behind above a 50% Fib during 47.22 paves a approach for a retest of 49.11 (38.2% retracement, trend line support-turned-resistance).

Crude Oil Prices Hit 6-Month Low as Liquidation Heats Up

Chart combined regulating TradingView

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

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