Thank you for visiting our website.
Until further notice, Tradeo is no longer accepting new clients.

Regards
Tradeo

18 September 2020

WTI bulls ignore the return of Gulf oil producers around mid-$41.00s

WTI seesaws near the early-month highs while taking rounds to $41.45/50 ahead of Friday’s European session. In doing so, the energy benchmark pays a little heed to Reuters’ piece conveying restoration of oil rigs in the Gulf of Mexico. The reason could be traced from the dull performance of the US dollar and mixed headlines from Saudi Arabia and the OPEC+ group comprising the Organization of the Petroleum Exporting Countries (OPEC) and its allies like Russia.

“US offshore drillers and exporters began a clearup on Thursday after Hurricane Sally weakened to a depression and started rebooting idle Gulf of Mexico rigs after closing the down for five days” said Reuters during the early Friday. The same could add into the 180 figures of weekly Baker Hughes US Oil Rig Count, up for publishing around 17:00 GMT.

Technical analysis

Considering the strength of the 200-bar SMA and signals of a pullback marked by the RSI, sellers remain hopeful. The same push them to look for entry if oil prices drop below the 61.8% Fibonacci retracement level of August 26 to September 08 downside, near $41.00. Meanwhile, a sustained clearance of $41.42 figures, comprising 200-bar SMA, will aim for September 04 top of $42.07 before the August 27 bottom near $42.50 challenge further rise.

https://www.fxstreet.com/news/wti-bulls-ignore-the-return-of-gulf-oil-producers-around-mid-4100s-202009180600

EUR/GBP to target the 0.9308 2017 high – Commerzbank

EUR/GBP is seeing a period of stabilisation ahead of the 55-day ma at 0.9038 and trades at 0.9140, posting mild gains of 0.1% on the day. Karen Jones, Team Head FICC Technical Analysis Research at Commerzank, expects the pair to push higher again towards the 2017 high at 0.9308.

Key quotes

“EUR/GBP’s correction lower went a little further than we had hoped but remains within the realms of a correction only. We view this as the market pausing ahead of further gains to the 0.9308 2017 high and 0.9323, the 78.6% Fibonacci retracement. This is formidable resistance and it is expected to hold the initial test.”

“We suspect that the market is consolidating ahead of another leg higher. Near-term dips will find initial support at 0.9072, the mid-August high and are likely to remain contained by the 55-day ma at 0.9038.”

https://www.fxstreet.com/news/eur-gbp-to-target-the-09308-2017-high-commerzbank-202009180628

Legal disclaimer: The material does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instruments. UR Trade Fix Ltd accepts no responsibility for any use that may be made of these comments and for any consequences resulting in it. No representation or warranty is given as to the accuracy or completeness of this information. Consequently, any person acting on it does so entirely at their own risk. The analysis does not involve any specific investment objectives, financial situation and needs of any specific person who may receive it. Past performance does not constitute a reliable indicator of future results and future forecasts do not constitute a reliable indicator of future performance.

It has not been prepared in accordance with legal requirements designed to promote the independence of research, and as such it is considered to be marketing communication. Although we are not specifically constrained from dealing ahead of the publication of our research, we do not seek to take advantage of it before we provide it to our clients. We aim to establish, maintain and operate effective organizational and administrative arrangements with a view to taking all reasonable steps to prevent conflicts of interest from constituting or giving rise to a material risk of damage to the interests of our clients. We operate a policy of independence, which requires our employees to act in our clients’ best interests when providing our services.