WTI crude oil dropped more than 14% in less than a month at one-month low pushing USD/CAD to record its biggest bullish run since January 2016. The calendar is busy today with Fed policy meeting in the epicenter. The U.S. ADP employment change will give a signal for the NFP number on Friday while EUR traders will eye Eurozone’s GDP for the Q1.
West Texas Intermediate – Technical Outlook
The West Texas Intermediate (WTI) crude oil plummeted almost 14% after the peak on the $54.10 resistance level in the previous month. Oil price posted a new one-month low at $47.50 during Tuesday’s trading session while it met the target that we mentioned in a previous analysis at $47.60 (see technical analysis here: https://bit.ly/2pv0QJg). The drop started after ConocoPhillips, an American giant multinational energy company announced its earnings for the first quarter and raised doubts about the lasting efficacy of an OPEC scheme to cut production and boost prices.
The price broke the significant ascending trend line, that was holding for more than one year, to the downside. On the short-term timeframe, the 50-SMA created a negative crossover with the 200-SMA indicating further downward movement. The RSI indicator is moving slightly below the 30 level whilst the MACD oscillator is holding below its mid-level and slipped beneath the trigger line.
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